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Eliminating Ghost Assets: The Path to Efficient Asset Management

Ghost assets are assets that appear on a company’s balance sheet but cannot be physically located or are not being utilized effectively. These ghost assets pose significant challenges to businesses, including financial implications, operational inefficiencies, and inaccurate reporting. However, with the right strategies and digital asset management solutions, organizations can effectively eradicate these ghost assets. 

The implications of ghost assets: 

Ghost assets hit a company’s financial health, profitability, and goodwill hard. Firstly, they show inaccurate asset values and lead to incorrect financial decision-making. These assets are erroneously included in financial statements, inflating the balance sheet. This can mislead investors and affect the company’s credibility. 

Ghost assets result in unnecessary insurance and maintenance costs. Companies continue to pay premiums for assets that are no longer in use. You spend on maintenance of assets that don’t exist or are not functional. These expenses could be better allocated to areas that require investment for improved financial performance. 

What causes ghost assets: 

The existence of ghost assets can be attributed to error-prone manual processes in asset management. Traditional asset management methods often rely on manual tracking, spreadsheets, and paperwork. These practices are prone to human errors, data discrepancies, and oversights. The lack of real-time visibility and accountability makes it challenging to identify assets that have become ghost assets due to theft, loss, or obsolescence. 

Inefficient inventory management and record-keeping systems contribute to the proliferation of ghost assets. Without a streamlined process for tracking and maintaining asset information, assets can slip through the cracks, leading to inaccuracies in the records and the inability to identify unused or misplaced resources. 

Mobile solutions to eliminate ghost assets: 

To scare off ghost assets and enhance overall asset management efficiency, organizations must embrace digital solutions. By leveraging modern technologies, such as cloud-native mobile applications, companies can bridge the gap between frontline workers and back-end systems. The connected frontline workers enable real-time data capture, asset tracking, and automated reporting. This ensures accurate and up-to-date records, eliminating ghost assets. 

A best-in-class mobile asset management solution uses barcode or RFID scanning, simplifying the asset identification and tracking process. This reduces the manual effort required and minimizes the chances of errors, enabling swift and accurate asset verification and reconciliation. Organizations can also implement proactive maintenance schedules, ensuring assets are regularly inspected, repaired, or replaced when necessary. This preventive approach mitigates the risk of assets becoming ghost assets due to neglect or oversight. 

Ghost assets pose significant challenges to businesses, impacting their financial stability and operational efficiency. However, by embracing digital asset management solutions, organizations can eradicate these phantom resources and streamline their asset-tracking processes. Mobile solutions, connecting frontline workers with back-end systems, empower companies to maintain accurate asset records, prevent ghost assets, and optimize resource utilization. 

Looking for a best-in-class mobile asset management solution for your business? 

At PropelApps, we have built a mobile asset maintenance management solution that eliminates process inefficiencies in your organization. The solution connects your frontline workers with the back-end systems such as Oracle EBS and SAP S/4HANA and helps you get real-time comprehensive visibility into your assets. By replacing manual processes, our solution closes the door to errors and makes your asset reports accurate.  

Forget ghost assets and think growth with PropelApps.  

Want to learn more? Get in touch with us now.