EAM, or enterprise asset management, involves the management of an organization’s physical assets, capital, as well as its back office system. This basically translates into the management of all processes of an organization including manufacturing, inventory, shipping, distribution, and logistics. Since it deals with the processes involved in the functioning of a company, it is often referred to as the back office system.
An efficient enterprise asset management solution can, for an organization, be the single most vital tool in uncovering hidden costs and preventing operational surprises. By optimizing maintenance resources, increasing inventory efficiency, and improving employee and equipment productivity, EAM enables organizations to save both time and money.
In certain cases, enterprise asset management scores over computerized maintenance management system software. Although the CMMS software significantly decreases expenses and brings up overall productivity, it might fall a little short on efficiency when it comes to large enterprises. In such cases, since the organization’s size and expenses are both much larger, they become difficult to track and manage. EAM, on the other hand, is capable of taking into account a comprehensive view of all the assets in an organization, like staff, physical buildings, inventory, and equipment. EAM allows for a constant monitoring of all equipment, and a tracking of quality control, purchasing, shipping, and accounting procedures. Also, since the EAM provides a more comprehensive view of the company’s assets, it becomes easier for facilities or manufacturing departments to decide where the problems actually are, where it is possible to make changes, and where costs can be reduced so as to give the production and profitability a boost.
Enterprise asset management software will be able to lower your company’s production and transportation costs, inventory costs, as well as ordering costs. If you are planning to get such software, you need to give thought to a few things first. To begin with, EAM software has a wide scope of activities. As a result, it is bound to take quite a bit if time and resources before it can be implemented successfully. Also, while buying the product, you need to make sure that you purchase it from a company that is stable, will be around in the next 5 years, and offers good tech support and training.