There are many reasons to periodically conduct a physical inventory of assets. One often overlooked benefit is the potential for asset recovery.
Asset recovery often leads to identification of idle assets.
Idle assets not only cost money, but represent risk. For example, idle assets are likely not to be missed if they are stolen, whereas assets that are regularly utilized would stand out almost immediately. It is important to ensure that all assets are used productively throughout their economic life.
This begins with awareness.
Management is sure to hear about the need for additional assets in areas of high utilization, but in all likelihood, will be unaware of surplus. Further, idle assets may contain sensitive information that if lost or stolen could lead to a data breach. Asset visibility provides opportunity to safeguard and make use of underutilized assets more effectively.
Regardless of whether some assets are poorly utilized while others are congested, the result reflects unfavorably on operations. Being aware affords the opportunity to improve or re-design processes that impact overall asset utilization and productivity.