Helpful Summary
Overview: Our article clarifies the differences between asset management and facility asset management, emphasizing the unique roles each plays in enhancing operational efficiency within organizations.
Why You Can Trust Us: BlueTally has supported industry leaders like Vodafone and Pfizer, helping them achieve streamlined asset control with a dedicated SOC 2 compliant asset management solution. Our positive feedback on platforms such as Capterra and GetApp underscores our expertise in asset management solutions.
Why It Matters: Understanding the differences between managing all assets and focusing solely on physical facility assets allows organizations to select the most effective management strategy that aligns with their operational goals.
Action Points: We recommend assessing your organizational needs to choose between comprehensive asset management or specialized facility asset management, ensuring the selected approach matches your strategic objectives.
Further Research: Explore more about how specific asset management software can integrate with your business systems, enhancing efficiency and providing greater control over your asset portfolio.
Total asset visibility (TAV), though extremely beneficial, remains elusive for many businesses today. And this lack of oversight can cause a ripple effect.
One moment, you’re swimming in process inefficiencies, and in the next, you might find yourself facing non-compliance battles or the risk of illiquid collateralized debt obligations (CDOs).
As you look for solutions, you’ll most likely come across the terms "asset management" and "facility asset management." While they might seem similar, there are some key differences between them. Knowing these differences can help you decide which approach is right for your business. when implementing an asset management system.
That said, today’s BlueTally article will provide you with everything you need to understand facility asset management vs. asset management.
But first things first...
Why Listen to Us?
At BlueTally, we understand the challenges of asset management firsthand. We've helped numerous businesses, ranging from large corporations like Vodafone and Pfizer to smaller ones, gain control of their assets and streamline operations.
Not only have we received thumbs-ups on platforms like Capterra, GetApp, and Software Advice, but you can also see the positive things our clients say about us:
These endorsements show that we’ve seen the difference a well-defined asset management strategy can make, and we're passionate about sharing that knowledge with you.
What is Asset Management?
Asset management is the overall practice of tracking, verifying, overseeing, and maintaining all the physical and intangible assets your company owns. Essentially, with this process, you’ll gain maximum visibility and insights into assets like:
- Physical assets: This includes all the tangible property your company owns, from buildings and vehicles to computers and furniture.
- Financial assets: Think stocks, bonds, and even cash on hand. These assets can be tracked and managed to ensure optimal financial health.
- Intangible assets: These are less tangible but still valuable assets like software licenses, intellectual property (patents, trademarks), customer lists, and brand reputation.
What is Facility Asset Management?
Facility asset management is a specific subset of asset management that focuses solely on the physical assets that make up your facilities.
So, it’s just like having a dedicated system for tracking and managing everything within the four walls of your office, building, or factory. Here's a breakdown of what it actually covers:
- Buildings and structures: This includes the physical structure itself, from roofing and HVAC systems to electrical wiring and plumbing So, in a school setting, for instance, facility asset management would track their buildings, classrooms, dormitories, and their associated infrastructure.
- Equipment: Here, we're talking about things like elevators, generators, and specialized equipment specific to your industry. For hospitals, that would involve medical beds, admin furniture, and so on.
Differences Between Asset Management and Facility Asset Management
The most obvious difference between facility asset management vs asset management is the scope in which they operate, as we’ve covered in the previous sections.
But besides this, they could also differ in terms of objectives, KPIs (key performance indicators), and integration. Let’s take a closer look.
1. Objectives and Focus
Asset Management prioritizes the overall value and performance of all your assets. Basically, it aims to maximize the return on investment (ROI) from these assets across their entire lifecycle.
This could involve strategies like asset tracking, selling off underutilized assets, optimizing maintenance schedules for expensive equipment, or extending the lifespan of buildings through strategic renovations.
Meanwhile, facility asset management is just all about ensuring that the physical assets run smoothly with minimal downtime.
Take, for example, a manufacturing plant. Facility asset management would prioritize equipment reliability, safety standards, and production uptime.
2. KPIs & Metrics
Facility asset management vs. asset management also differ in terms of how you measure success. Since facility asset management is all about building assets, its metrics naturally focus on operational efficiency and functionality. So, you’ll be tracking metrics like:
- Mean Time Between Failures (MTBF): Tracks the average time between breakdowns or malfunctions of equipment.
- Space Utilization Rate: Measures the percentage of usable space within a facility compared to unoccupied areas.
- Compliance Rates: Tracks adherence to relevant industry regulations and building safety codes. It ensures the facility environment is safe and meets necessary standards.
- Preventive Maintenance Completion Rate: Monitors the efficiency of preventative maintenance schedules to ensure timely repairs and avoid unexpected downtime.
However, asset management goes beyond just facility assets. You'll not only track metrics related to facility asset management but also keep an eye on other indicators that show the financial health and long-term value of all your assets. These can include:
- Return on Investment (ROI): Measures the profit generated in relation to the cost of an asset.
- Total Cost of Ownership (TCO): Takes into account all costs associated with an asset throughout its lifecycle, including purchase price, maintenance, repairs, and disposal.
- Asset Utilization Rate: Tracks the percentage of time an asset is actively used and contributes value.
- Net Present Value (NPV): Considers the time value of money when evaluating potential asset investments. It helps determine the profitability of acquiring or upgrading an asset by factoring in future cash flows.
3. Software Integrations and Features
Software solutions for general asset management often integrate with a wider range of external solutions. This could include CRMs, project management tools, and even identify management.
For instance, here at BlueTally, our software integrates with popular tools like Jira for project management and InTune for endpoint management. This means all your asset data is in one place, making it simpler to manage and make decisions.
Now, when it comes to facility asset management software, integrations are a bit more specialized. In other words, they prioritize features that directly aid the objective of facility asset management
For example, a facility management tool might integrate with external systems like Building Automation Systems (BAS) to keep tabs on energy usage or HVAC performance.
Which One is Right For You?
Facility asset management is a strong option if your primary focus is on optimizing the performance of your physical facilities and the assets housed within them. It helps ensure a safe, efficient, and cost-effective work environment.
Meanwhile, general asset management is the ideal choice if your business operates a wide range of assets, from physical facilities and equipment to intangible assets like intellectual property and customer data.
But if you run a fully remote team, for instance, you might not factor into facility asset management when setting up an asset management system. After all, you won’t have to worry much about physical company assets.
Ultimately, the best approach depends on your specific needs and priorities. But no matter which category you fall into, our asset management software, BlueTally, has you covered.
The Easiest Way to Streamline Your Asset Management
Managing your assets with spreadsheets might have worked for a small handful of items in the past. But as your business grows and your asset portfolio expands, it quickly becomes a recipe for frustration. Spreadsheets are prone to errors, siloed information, and a general lack of visibility.
That's where BlueTally comes in. We offer a user-friendly platform designed to streamline and automate your entire asset management process, whether you're dealing with facilities or a wider range of assets. With us, you'll unlock a host of incredible features.
For example, you can effortlessly schedule audits and maintenance tasks, with notifications for overdue audits. This makes it easier to maintain compliance and operational integrity by ensuring assets are regularly audited and maintained:
We also automate depreciation calculations for assets using straight-line methods and generate comprehensive reports. This means you’ll be getting valuable financial insights into asset value, which can help in budgeting and financial planning:
Other features include:
- Asset checkouts and assignment: allows you to manage asset check-out requests and assign assets to employees, locations, or departments. This ensures efficient asset tracking and usage, ultimately boosting organizational efficiency.
- Customizable fields and status labels: To track additional information about assets that matter to you.
- Powerful integrations: We integrate with tools like Azure Active Directory, Intune, and Jamf, among others to streamline your asset management process.
- Barcode printing for assets: Helps you print barcodes for easy scanning and tracking of physical assets.
Conclusion
Ready to take control of your asset management? Sign up for our free version today and instantly gain access to manage up to 50 assets. As your asset inventory grows, you can always upgrade to accommodate them.
