9 Reasons You Should Invest in Enterprise Asset Management Software Solutions

By investing in an Enterprise Asset Management software system, a business can maximize its efficiency and protect its physical assets. Asset management software streamlines the tracking, maintenance, and optimization of all physical assets, ranging from large pieces of machinery to vehicle fleets to underlying infrastructure. Consequently, EAM software eliminates manual paperwork and costly blind spots. In short, it acts as a digital nervous system of your operations, enabling your staff to move away from reactive firefighting to a data-driven preventative approach in order to maximize the longevity of your assets and meet safety compliance.

What does Enterprise Asset Management Software do for US Businesses?

The software for asset management software serves as a hub for the organization's operations of the organization. Instead of relying on disconnected spreadsheets, US organizations now implement EAM solutions for complete lifecycle tracking of their physical assets. The software monitors the condition of the equipment in real time, provides automated maintenance schedules, and keeps track of spare parts stocks. Having all of this information available in one place ensures that the maintenance staff and the management see the big picture and understand the status of the assets an organization possesses at any moment.

For organizations that focus primarily on profits, the main benefit of the EAM system consists of the transition from expensive reactive firefighting to proactive management. Using predictive information enables businesses to service their machines before breakdowns occur, leading to a significant reduction in unplanned downtime, longer lifespans of expensive devices, and savings on unexpected capital expenses. Moreover, in some heavily regulated industries in the USA, such as energy, manufacturing, and healthcare, the EAM software automatically tracks maintenance history and safety inspections.

Top 9 Things to Know About Asset Management Software

1. All-in-one Management of Asset Lifecycle

EAM software serves as the primary hub for information on an organization's physical assets, providing details from acquisition through end-of-use. Instead of the information being spread across different parts and files, the software collects useful information such as details of the procurement of the asset, the history of use of the asset, and other data in one place. Thanks to such information, procurement teams, managers on the production floor, and all of the company's management share the same understanding of the company's operational data. Finally, such an approach eliminates the necessity of dealing with ghost assets in practice and makes tracking of the assets transparent and efficient. 

2. Transition Operations from Reactive to Predictive

Instead of just relying on a critical equipment breakdown to stop their production process, EAM software capitalizes on information to arrange timely maintenance services. For example, EAM Systems may use run-time hours or be fused with IoT sensors to detect small problems early, preventing major failures. Thus, maintenance costs for emergency repairs are significantly decreased as they are always higher than planned.

3. Increases Lifespan of Equipment as Well as ROI 

Assets like machinery, vehicle tracking, and buildings are considerable investments for a firm. EAM software ensures the safeguarding of those investments through routine calibration of machines and timely replacement of parts. This enables keeping equipment functioning optimally and prolonging its operational life, thus saving the company from high replacement expenses and maximizing ROI. 

4. Optimizes Supply Chains in Inventory and MRO 

Being unable to operate equipment due to the unavailability of needed spare parts for repair is yet another hidden cost of maintenance. EAM systems solve the problem by automatically controlling the levels of inventory of Maintenance, Repair, and Operation (MRO) materials. The software sets the triggers for new order delivery by tracking the number of items left in stock, and connects the inventory directly with the workload needed for maintenance and repair of equipment.

5. Eases Compliance with Regulations and Audit Procedures

Industries like healthcare, energy, or manufacturing that need to comply with strict controls can find it extremely difficult to prove compliance. EAM software provides the required information in the shape of untampered digital audit trails that give the necessary information, such as who did the repair, the time of repair, when, and what materials were used. This way of data storage makes it possible for organizations to pass the inspection of OSHA, EPA, and ISO without much effort.

6. Supports Technicians at Work

Modern EAM programs free maintenance teams from the use of clipboards due to integrated mobile applications. Each technician can receive information about the history of assets, digital models of buildings, and operations manuals on his/her smartphone. He/she can record completed tasks, take photos of damaged equipment, and scan barcodes of parts in minutes.

7. Links to Core Business Systems

An EAM application does not work in isolation but functions as part of a connected corporate platform. Due to its link with ERP, the EAM solution links maintenance costs to the company's financial records. The EAM can also connect to the HR functions to check on and confirm the technician’s qualifications prior to letting them operate on a certain piece of equipment. Such connectivity eliminates the barriers between departments and ensures that the received information is used to make decisions outside the company's archives.

8. Enables Data Usage for Decision Making

The application accumulates relevant information related to breakdowns, repair expenses, and time spent on specific pieces of equipment. Standard analysis tools allow for transforming this information into reports showing the machines that cost the firm the most. The decision-makers can thereby clearly see the critical machines and calculate the associated cost of ownership.

9. Raises Security in The Workplace and The Management of Risks

One of the main causes of injuries at work and harmful incidents during operations is malfunctioning and non-maintained equipment. EAM systems could reduce the probability of such occurrences by requiring safety inspection checklists and lockout/tagout procedures to be performed before closing any work orders. Besides, it guarantees the timely execution of vital safety operations related to fire suppression, valve relief systems, and so on. Taking timely safety measures ensures the level of risk is lower, insurance costs are cheaper, and the company's reputation is upheld.

How Much Does Asset Management Software Cost?

1. Subscription-Based User Licensing

Most modern EAM platforms are Software-as-a-Service (SaaS) solutions, meaning they charge based on the number of user licenses, which are billed on a per-user monthly basis. Entry-level capabilities meant for small teams typically charge around $25 to $80 per user, while more advanced mid-range solutions charge around $80 to $150 per user. More advanced enterprise solutions equipped with predictive AI and other extensive customization features will most likely be priced above $150 or $300+ per user.

2. Pricing Tiers Based on Asset Numbers

Rather than charging for users, some EAM vendors have taken the approach of developing pricing tiers that depend solely on the number of physical assets being tracked. Thus, low-cost packages with basic features may only be charged at around $1,200 to $1,800 annually to keep track of approximately 500 assets being recorded. More expensive comprehensive packages for larger companies and their 10,000+ clustered assets will charge an annual licensing fee of at least $12,000.

3. Onboarding Fees and Implementation

There is always a large upfront financial investment necessary when implementing an enterprise system in terms of configuring the software and transferring data. Medium-sized businesses may spend anywhere from $5,000 to $20,000 on standard implementation fees, including training and testing. Large organizations utilizing massive equipment and facilities around the world can expect to spend from $30,000 to $150,000 on implementation consulting.

4. Third-Party Integration Costs

In order for your EAM software to work properly, it must be integrated with other business applications such as ERP systems, payroll software, etc. Although standard use of average email connectors is often free or generally inexpensive, the custom integration process for IoT devices could potentially incur serious expenses.

5. Mobile and Field Accessibility

As maintenance teams tend to work in the field, mobile access is necessary. Certain software companies provide mobile access as part of the initial price, while others require extra fees for mobile use by their workers. Such passes are significantly cheaper than standard desktop licenses, but they do increase the overall costs across the company.

6. Regular Maintenance and Customer Support

Apart from the monthly costs, ongoing expenses have to follow the software purchase price, like technical support, system updates, and the storage limit of the program. While the basic package includes standard email support, dedicated support managers with guaranteed fast support will add up to 20% on the annual bill.

Conclusion 

Choosing the right Asset Management (EAM) software is a fundamental milestone in transforming your approach to operations. To ease the process of selecting the right EAM system, it is advisable to consult a software-as-a-service (SaaS) marketplace. This comprehensive online platform allows users to explore and compare the latest tracking technologies, equipment suppliers, and obtain the sought-after software suited for their needs on the same platform. By streamlining the process of evaluation, the SaaSMarketplace helps organizations eliminate the uncertainties related to the purchase of technology.