Asset inventory management refers to the processes you use to track business assets and inventory. Most businesses do this with software, but you might track assets by hand if you’re just starting out.
Whatever process you use, asset inventory management aims to ensure all your assets are well-maintained, inventory is stocked, and you know where everything is.
The more efficient your process is, the more benefits you’ll see, such as:
More efficient spending
Better customer service
Avoiding theft
Understanding when to replace assets
Timely maintenance of assets
That’s why most businesses turn to software to streamline asset inventory management. When choosing software, contractors should consider how well the features map onto their ideal asset inventory management process.
Below is a primer on asset inventory management: what it is, why it’s useful, and how to choose software that fits your needs.
What is Asset Inventory Management?
Asset inventory management is the process of tracking, monitoring, and maintaining a business’ physical and digital assets throughout their lifecycle. It often involves:
Categorizing inventory and assets
Assigning unique identifiers for tracking
Monitoring asset location, status, and condition
Managing assets from purchase to disposal
Scheduling regular maintenance
Deciding when to replace assets
Effective asset inventory management helps you reduce losses, ensure safety, and make more strategic purchases. It can be used for tangible items like machinery and intangible assets like software licenses.
Different businesses will have different systems for asset inventory management, but the core purpose remains the same.
What is The Purpose of Asset Inventory Management?
The purpose of asset inventory management is to keep all your tools, fleets, and inventory ready to go and well-maintained.
With asset inventory management software, you can:
Store data in one place: This helps you centralize asset management, maintenance, and purchasing.
Track asset and inventory location: That way, techs can find what they need much more efficiently.
Monitor idle time: Understand what tools, vehicles, and equipment are being used frequently, and which ones are sitting idle for long periods of time.
Track asset maintenance: Understand which tools, vehicles, and other assets need scheduled maintenance.
Track purchasing and depreciation: Keep tabs on what you need to replenish and when to replace assets.
The specifics of what you track will depend on each asset. For example, location and maintenance might be the most essential details to track for vehicles – but purchasing will likely be the most crucial detail for raw materials.
What are The Benefits of Asset Inventory Management?
Asset inventory management has a lot of benefits, including:
More efficient work: When techs need materials, vehicles, and tools, they’ll know exactly which ones are available and where to find them.
Better customer service: You’ll be able to give customers accurate timelines based on whether or not you need time to purchase raw materials for the job.
More informed purchases: You can see how fast different assets and inventory get used up, so you can make more informed decisions on when to purchase new materials and equipment.
Accurate accounting: Large assets like vehicles depreciate over time. When your accountants know when you purchased an asset, how much it cost new, and how much it’s being used, they’ll be able to accurately estimate depreciation.
Easier maintenance: With timely maintenance reminders, you’ll be able to ensure vehicles and tools are all maintained on time. This helps prevent bigger problems down the road.
Overall, it’s about improving your bottom line. Asset inventory management enables you to work more efficiently, make more informed decisions, and spend your money more wisely.
What Are The Different Types of Inventories Managed?
Generally speaking, there are four types of inventory you’ll manage. You might only have a few of these types depending on the nature of your business.
Raw materials: These are the materials you use to complete projects: lumber, shingles, nuts and bolts, etc.
WIP (work in progress) inventory: These are materials involved in production on a job site that haven’t been used up yet. For example, you might have a bunch of shingles sitting at a homeowner’s property as you finish a roofing project.
Finished goods: These are products you’ve finished and are ready for sale – for example, 3D printed materials that are ready to go.
MRO (maintenance, repair, and operations) inventory: These are supplies like cleaning fluids, caulking, and other materials you use for maintenance and repair work.
Regardless of what you’re tracking, there are some important ways you can make asset inventory management more effective.
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How Can You Manage Your Asset Inventory?
Managing asset inventory might sound complicated, but you can make it easier on yourself with some best practices.
5 key tips on how to manage your asset inventory are shown in the image below:
Below, we’ll cover each one in more detail.
1. Track materials separately
Understanding the exact quantity of each piece of equipment and inventory starts with tracking them separately. If you’re only tracking by category, you won’t be able to tell when there are issues with a specific kind of inventory.
For example, supply chain issues might mean delays on a specific material you order from one of your suppliers. When you track materials separately, there’s an easy way to keep an eye on that issue and search for an alternative when necessary.
With ServiceTitan’s inventory management software, you can track the quantity of each type of asset and inventory, with their exact location and part number.
This lets you know how much stock is in each warehouse and vehicle, and when to replenish inventory in each location. The information connects to your work order information in ServiceTitan, so you can advise customers on what you have available as you assemble a proposal.
2. Account for potential delays
When you closely monitor inventory, you’ll get a feel for how long it takes to go through items you use regularly. For example, you might go through consumables like gloves and safety vests quickly when the crew works with asphalt.
ServiceTitan’s inventory software lets you maximize the use of stock items, so you don’t have a ton of inventory sitting on shelves—but you have enough on hand to avoid delaying work.
Your techs can see exactly what’s available at each location and put materials on hold as needed. Then, you’ll be able to see what’s on hand and when it’s time to order more—before it disappears from your shelves altogether.
3. Conduct asset inventory audits
How do you know that the numbers in your software match the numbers in your warehouse? Asset inventory audits. They’re when you periodically count the number of each item you have on hand and compare those numbers to what’s in your software.
Inventory audits can be a lot of work, but how labor-intensive they are will depend on the system you have in place for counting items.
With ServiceTitan’s Inventory App, your techs can get audits done quickly by scanning inventory barcodes on their mobile phones.
Rather than working out audits on a spreadsheet later, you’ll link physical counts directly back to what’s in your software.
4. Track high-value assets
High-value assets are the essential tools and equipment for getting work done. In the trades, high-value assets include power tools, machinery, and your vehicle fleet.
High-value assets are important to track because they’re so essential to your ability to serve customers. But tracking vehicle fleets is challenging because they’re always on the move and need frequent maintenance. Up to 70% of companies have a manual process for fleet tracking, but that means hours of fixing timesheet discrepancies.
ServiceTitan’s Fleet Pro is designed specifically to track the location and condition of your entire fleet. PS features allow you to track vehicles in real time to reduce theft and unauthorized use.
Techs get automated notifications whenever vehicles need maintenance, so unexpected breakdowns won’t delay your jobs. You’ll also be able to view driver performance metrics to ensure safe, responsible fleet management.
5. Be proactive in replenishments
What does your process look like for restocking inventory? Having clear, organized processes for purchase orders starts with knowing exactly when you need to replenish stock.
With ServiceTitan, you can create custom stock lists for each truck and warehouse to set your preferred inventory levels. When stock dips below your preferred amount for that location, the app will automatically trigger replenishment – so you don’t need to worry about creating purchase orders.
Once your new stock gets delivered, make sure you have an orderly process for techs to unbox and pack away items. It’ll make your audits that much easier!
Now that you know how asset inventory management works, you’ll have to decide which inventory app is right for you.
How Can You Choose Asset Inventory Management Software?
Asset inventory management software can vary widely in its features and capabilities. Here are some things to look for when you’re deciding on the best software for your workforce:
Industry-specific: Ideally, you’ll want software that works for your industry. ServiceTitan is custom-built for the trades, including industries like HVAC, plumbing, construction, roofing, and others.
Features: Take a close look at your processes and come up with a checklist of features you need to manage those processes effectively.
Integrations: Ensure your asset inventory management software integrates with the other tools you need, such as field service apps, project management tools, and budget tracking.
Scalability: You may only have one location now, but what happens when you want to expand? Choose software that’s scalable across multiple warehouses and vehicles.
Other capabilities: Asset nventory management is often part of a larger software suite with other features. Other capabilities can be helpful since you won’t have to buy as many software tools to manage your business.
Ease of use: Extra features can hold you (and your team) back if the software is challenging to use. When software is user-friendly, you’ll spend less time training techs.
Satisfied users/reviews: Take a look at software reviews. What do users have to say about its features? Support? Ease of use? Look at both positive and negative reviews to get a sense of the pros and cons.
Support: Your software should have a support plan so you can ask questions if you get stuck.
Asset inventory management can get complicated – but with the right software, it doesn’t have to be. Tools like ServiceTitan can help you track all the tools and materials you need for your work, so you can focus on getting the job done.
ServiceTitan is a comprehensive software solution that helps service companies streamline their asset and inventory management, manage operations, and boost revenue. Our comprehensive, cloud-based platform is used by thousands of electrical, HVAC, plumbing, roofing, and irrigation contractors across the country.
ServiceTitan Software
ServiceTitan is a comprehensive software solution built specifically to help service companies streamline their operations, boost revenue, and substantially elevate the trajectory of their business. Our comprehensive, cloud-based platform is used by thousands of electrical, HVAC, plumbing, garage door, and chimney sweep shops across the country—and has increased their revenue by an average of 25% in just their first year with us.
