Return on Investment

When considering an investment to improve your business, you probably think in terms of the benefits, the costs, and how long until I recover my investment. If you go to the effort to track and account for your assets, you will save money and optimize resources in several ways. One of our large customers (who has been with us for over five years) estimates they have saved $125M over the five years by improving their asset management and tracking. Regardless of the size of your organization, an investment in an asset tracking solution (such as ATS) that has great web and handheld capabilities will help you continually work to make your asset data accurate and help you immediately realize great returns on your investment. Take a look at some of these ideas and see which ones would most benefit your organization:

Resourceful Procurement
Optimal Software Licenses
Accurate Property Tax
Reduce Total Cost of Ownership (TCO)
Manage Leased Equipment
Lower Installation Costs, Redundancies Reduced, Unnecessary Maintenance Discontinued
Efficient Support
Departmental Accountability
Less Headaches

Resourceful Procurement

Up to 30% of an IT budget can be saved by effective asset management. Assume your organization spends $2,000,000 a year on IT equipment. You could potentially avoid purchasing $600,000 of equipment. If your company has an IT budget of $200,000, you could save $60,000. If your organization spends $200,000,000 a year on IT equipment, you could save $60,000,000. This is one of the largest potential benefits for companies who take the time to track their assets. Regardless of the size of your organization and the assumptions used, it is not difficult to see how quickly asset tracking and asset management efforts pay for themselves – just about immediately.

Optimal Software Licenses

If you buy too many licenses, the money is wasted. If you buy too few licenses, you open yourself up to a little risk. If you manage 10,000 computers and you have 25 computers (.25%) not actually in use and you purchase $200 of software for each of these unused computers, you have unnecessarily spent $5,000. If you are not using 5% of your assets and you purchase the same $200 of software for each one, you just spent $100,000 unnecessarily. Many companies cannot account for 10% or more of their assets.

Accurate Property Tax

If you accurately track your assets, you can reduce your property taxes between 20 – 30%. If your organization pays $50,000 a year in property taxes on your assets, you could save $10,000 – $15,000 a year. If your property taxes are $500,000 a year, you could save your company $100,000 to $150,000.

Reduce Total Cost of Ownership (TCO)

By practicing good asset management, an organization can reduce its total cost of ownership by up to 10% annually. If you assume that your TCO per user is $8,000 and you have 5,000 users and that you save only 5% per user, that is an annual savings of $2,000,000. In the first year of practicing sound asset management, you could save up to 30%, which would be $12,000,000 in this example. If you had 1,000 users, you could see annual savings of $400,000 or first year savings of $2,400,000.

Manage Leased Equipment

Many companies lease, rather than buy, PCs. If when the leases end and if the equipment cannot be returned in a complete and timely fashion, you as the customer may be fined enough to turn the overall financial decision to lease versus buy into a negative one. Failure to locate and return leased equipment can increase original lease price by over 30%. Five percent of an IT budget could be saved if companies had the tools to foresee and safely manage the ending of leases. If you have leased assets of $10,000,000, then you may save your company $300,000.

Lower Installation Costs, Redundancies Reduced, Unnecessary Maintenance Discontinued

Organizations that practice asset management have lower installation costs per PC by an estimated 5%. By tracking and reconciling assets, many time organizations identify redundancies or seldom used products that can be eliminated. Organizations also find that they are paying maintenance on equipment they are not using – as much as 5% of the maintenance budget can be saved. All these items result in reduction of dollars spent because of accurate asset management.

Efficient Support

Those companies who do a good job of knowing where their assets are can cut the hours required to support their assets by one fifth. Utilizing asset management practices provides a side benefit of 8-10% fewer hours of asset downtime.

Departmental Accountability

Some organizations go to the effort to allocate the costs of assets to particular departments or cost centers. When department managers are charged for equipment they request, it is interesting to see the reduction in “must have” asset purchases they submit to the budgeting process.

Less Headaches

By using healthy asset tracking practices, you are buying more intelligently, improving efficiencies, and saving many dollars for your company. Not only are business decisions better when based on accurate information and assets easier to support and maintain, but people from all departments have fewer headaches and more smiles. They will have you, your team, and CG4 to thank. You will probably get a raise or a bonus!