Labor (40% of income), material and consumables (20%), and tools and equipment (15%) are a company’s top costs. They're also the most difficult to manage when using a patchwork of paper-based systems and spreadsheets.
Neither transparent or accountable, these systems can have negative cost and efficiency implications for managing tools and assets.
Managing assets the old way
are spent searching for tools (on average)
have difficulty tracking tools and equipment
is spent annually
on replacing lost assets (on average)
of construction time
is spent on non-productive activities
Why labor costs matter
While labor costs and shortages are on the rise, technology can make labor management more predictable by exposing business inefficiencies, which can improve planning and profitability.
Understanding labor productivity can also provide transparency into how assets are used. Ask yourself the following questions:
How much work can a group of 20 workers get done in a day?
How many days do you need to complete the job?
How many workers will you need to finish in time?
How much time can you save if you invest in faster equipment?
Prioritizing digital technology creates data. Key data items can then be identified to enable quick action.
Technology such as IoT and tagging can provide an asset’s location, usage and maintenance status. This real-time information can interface with asset management software so teams can make more informed tool management decisions.
How can asset management software help?
It enables more accurate budgeting by tracking materials and consumables.
It helps avoid downtime by identifying duplicate, unused assets.
It can control loss by monitoring consumables and equipment removal.
It provides transparency into inventory by connecting to smart batteries.
Control costs, reduce losses and keep projects running on time
Digital solutions like smart batteries and asset management software are increasingly easy to use and inexpensive to implement. With the right choices, digitization can help cut costs on assets, free up staff for more productive work and eliminate delays caused by paper-based systems and spreadsheets.
Digitization and other technologies can help you increase productivity, optimize your business and enhance safety. How? Find out by exploring our new collection of whitepapers, which include topics such as automation, asset management and human augmentation.