ServiceChannel Ebook

A STEP-BY-STEP APPROACH TO

ASSET TAGGING & ASSET MANAGEMENT BEST PRACTICES

A Publication of

A Step-By-Step Approach to Asset Tagging & Asset Management Best Practices

EFFECTIVE ASSET MANAGEMENT BEGINS WITH A TAG “You cannot manage what you cannot see” is a common refrain in the business world, perhaps to the point of it being a cliche. To manage and maintain your assets in proper operating condition, you do need to “see” them, wherever they are.

Visibility of, and ready access to, assets are essential for ongoing maintenance and to collect and analyze relevant data that those assets generate. Comprehensive asset visibility is the only way to ensure optimal performance of your asset base so you’re always delivering a positive customer experience.

The first step in this process of gaining asset visibility is to uniquely identify each asset; one way to do that is to physically ‘tag’ each asset (by affixing each with a scannable, unique identifier like a barcode) and create a digital inventory of all critical assets that needs to be tracked and managed. In legacy operations, asset tagging might have entailed rudimentary methods (e.g. capturing equipment model and serial numbers) recorded on pen-and-paper ledgers.

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A Step-By-Step Approach to Asset Tagging & Asset Management Best Practices

Today, there are a variety of modern asset tagging technologies (from barcodes to RFID/NFC tags) that enable equipment to be easily scanned with a mobile device for identification and tracking purposes, as well as to pull up a variety of associated data on a particular asset including its service history and warranty information.

Data from all tagged assets across all locations can then be captured, maintained and analyzed through centralized asset management systems. These software systems can create and report key performance indicators such as frequently recurring issues or repair & maintenance costs by type, by asset, by manufacturer, etc. to facilitate optimal performance.

Ideally, such asset management capability is integrated into a facilities management or service automation platform so asset-based service requests may be initiated and managed to completion.

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A Step-By-Step Approach to Asset Tagging & Asset Management Best Practices

SPECIFIC ASSET MANAGEMENT CHALLENGES Regardless of industry, facilities managers and operating executives face a myriad of operational challenges in their pursuit of keeping their assets – particularly critical ones – up and running. This is no trivial matter.

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The overarching goal of such an asset management process is this:

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This is why having a modern, technology-based asset tagging and management process in place is crucial for any multi-location organization that relies on its assets. It’s the only way to

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attain the requisite level of visibility into the status of each location’s assets and ensure success. That way, teams can operate more strategically, including managing critical assets through an endto-end lifecycle that maximizes value while limiting total cost of ownership.

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Significant downtime on businesscritical equipment (e.g., a walk-in freezer or oven for a restaurant, medical scanners at an urgent care center or an HVAC unit at a store in winter) can shut down a location, significantly impacting both the top and bottom lines.

Make more informed decisions when it comes to repairing or replacing assets.

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A Step-By-Step Approach to Asset Tagging & Asset Management Best Practices

SPECIFIC ASSET MANAGEMENT CHALLENGES (CONT.’D)

For FMs and others who are often responsible for the maintenance and repair of major assets, this is easier said than done. They virtually all face major challenges for effective asset management, that may be grouped into two major categories: CHALLENGES TO EFFECTIVE ASSET MANAGEMENT COMPLEXITY n

Performing frequent equipment maintenance and inspections

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Maintaining uptime to ensure proper business operations

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Managing asset and inventory turnover

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Maintaining lighting, temperature and air quality at optimal levels for employees and customers Tracking assets that may be moved from site to site Determining the best criteria to make repair or replace decisions for assets

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Managing hundreds of “key assets” in any single location, e.g. from retail stores to supermarkets Managing large numbers of internal and external technicians at all stores and across regions Processing large numbers of invoices and payments Monitoring large numbers of varying warranty agreements and providers Managing multiple and diverse government regulations and regulatory agencies

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A Step-By-Step Approach to Asset Tagging & Asset Management Best Practices

KEY OBJECTIVES FOR EFFECTIVE ASSET MANAGEMENT While these challenges may seem daunting, they are by no means unassailable with the integration of industry best practices and modern technology solutions.

Success begins with establishing the proper goals and objectives.

For FMs and operating professionals responsible for managing their organization’s asset base, key objectives are focused around: Service History Preventing repeat and/ or unnecessary asset service by reviewing an asset’s service history

Repair/Replace Making data-informed repair-or-replace decisions for key assets by tightly correlating R&M costs to each specific asset

Warranty Management Leveraging all available warranties and service contracts to prevent warranty leakage and unnecessary repair costs

Invoice & Payment Eliminating invoice processing errors while expediting payments to improve vendor relationships

To ensure that FMs and operating professionals can take on and meet these key objectives, following is a checklist of helpful tips they should consider for their asset management needs.

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A Step-By-Step Approach to Asset Tagging & Asset Management Best Practices

ASSET MANAGEMENT CHECKLIST STEP #1 Create a Digital Inventory of all Key Assets through Asset Tagging In order for an FM to understand what assets exist within his/her organization, s/he has to inventory each location and identify the critical information about each of the assets s/he owns. This process, known as inventorying assets, entails recording each asset’s type, brand, serial number, etc. via a unique, physical tag.

Three Must-Dos ➊ Each critical asset must be tagged with an easily scannable code such as bar, QR or RFID for accurate tracking and servicing ➋ Each key asset must be uniquely identifiable for easy tracking and managing through a digital database ➌ Consider using enterprise mobility (mobile devices) with scanning and tracking apps on smartphones and digital tablets

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A Step-By-Step Approach to Asset Tagging & Asset Management Best Practices

ASSET MANAGEMENT CHECKLIST STEP #2 Maintain & Update Accurate and Dynamic Asset Inventories Creating an asset inventory is only the first step. Ensuring that the inventory always reflects the latest and most accurate information of the assets is even more important. This is certainly true for assets that are portable and move among different locations. An effective asset inventory system must enable the FM (or other users) to adjust and update the recorded location of the asset, and enable anyone to track and access the asset’s service history with a simple scan of its asset tag.

Three Must-Dos ➊ Use a common and repeatable asset tagging process across all locations and enable the FM (or other users) to easily update an asset’s location when it’s moved ➋ Make the service history of each asset available via tags tied to an asset database, and easily shareable across all stores ➌ Conduct regular reviews of asset inventories to ensure accuracy

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A Step-By-Step Approach to Asset Tagging & Asset Management Best Practices

ASSET MANAGEMENT CHECKLIST STEP #3 Manage Each Asset through its Entire Lifecycle Advancements in technologies are helping ease the burden of managing all assets through their full lifecycle. Technologies such as smart tags can “broadcast” an asset’s location, service history and R&M costs, and the current operating condition of the asset, which are all important data points that FMs rely on for evaluating “maintain, repair or replace” decisions for assets.

This can help keep R&M costs in check and help elongate the useful life of assets and capital equipment.

Three Must-Dos ➊ Record original cost and purchase date of each asset, and the asset’s assigned location ➋ Correlate all work orders by each asset, by tracking the service history, including costs of parts and labor ➌ Retire outdated assets through disposal or sales to ensure highperformance operations at all locations

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A Step-By-Step Approach to Asset Tagging & Asset Management Best Practices

ASSET MANAGEMENT CHECKLIST STEP #4 Manage Service Work Orders Efficiently Knowing when an asset requires service is only half the battle for FMs and location staff. Ensuring that work orders are created in a timely way, dispatched to the right contractor and completed properly is the other half. Using modern work order management systems such as a service automation platform enables FMs and on-site teams to have a complete source-tosettle system that gives them visibility of all open work orders, across all locations, through one centralized platform.

Three Must-Dos ➊ Leverage modern technologies such as artificial intelligence and machine learning to make more informed decisions on repairing or replacing sub-optimally performing or malfunctioning assets ➋ Integrate asset tagging & management within a work order management system or service automation platform to easily track costs over time and other important data ➌ Reduce repair and maintenance costs through strategic operations such as planned or preventive maintenance

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A Step-By-Step Approach to Asset Tagging & Asset Management Best Practices

ASSET MANAGEMENT CHECKLIST USE CASE Cost Savings through Tiered Service Approach Using Planned Maintenance A national retail financial services firm incurred significant costs for the repair and maintenance of assets such as HVAC and lighting because it treated every service order as the highest priority, often requiring expedited dispatching.

Benefits of this new approach included:

By implementing a service automation-enabled planned maintenance process change, the company was able to establish different tiers for service orders ranging from P1 (highest) to P5 (planned services).

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Decreased overall R&M costs over time of important assets, while increasing regular maintenance schedules Reduced total number of work orders created over time Increased useful life of key assets through proactive inspections and maintenance

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A Step-By-Step Approach to Asset Tagging & Asset Management Best Practices

ASSET MANAGEMENT CHECKLIST STEP #5 Modernize Refrigerant Tracking and Management Supermarkets and grocery chains, food retailers and other types of companies face a myriad of operational challenges in the upkeep of their refrigerated assets, which are business critical.

One major area of complication is meeting the regulatory compliance related to the use of associated refrigerants.

Fortunately, there are many ‘smart’ tracking capabilities available in modern refrigerant tracking systems that automate many of these functions to improve equipment uptime and increase compliance.

Three Must-Dos ➊ Track refrigerant use to expedite service orders and address any leak events ➋ Perform all required inspections (e.g.

EPA leak calculations) to confirm leakage does not exceed mandated thresholds ➌ Implement enterprise-wide processes and plans for retrofitting and retiring refrigerated assets

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A Step-By-Step Approach to Asset Tagging & Asset Management Best Practices

SUMMARY Maintaining clean, well-functioning facilities as well as high uptime of vital assets and equipment are important responsibilities for any FM or operating executive today.

Abandoning outdated methods such as pen-and-paper asset inventories and management empowers facilities teams and their organizations with best practices such as: n

Automating asset tagging and management

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Making data-informed repair or replace decisions for assets and equipment

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Operating strategically through a detailed asset management action plan

These are necessary steps toward managing assets effectively through their entire lifecycle, at the most cost-effective rates possible. With service automation-enabled asset tagging and management now available, the time for facilities and operating teams to act is now.

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WANT MORE ABOUT FACILITIES MANAGEMENT? Check out these free ebooks:

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About ServiceChannel ServiceChannel transforms facilities management for brands that want to deliver a great customer experience across their physical locations with peak operational performance. Executives and facilities leaders at more than 500 global brands like Bloomin’ Brands, Cole Haan, CVS Health, Louis Vuitton, and Under Armour, love the ServiceChannel platform for its marketplace of 50,000 service provider companies, cloud applications, analytics, and intelligence into their multi-billion annual repair and maintenance spend.

ServiceChannel is a privately held company funded by Accel, with offices in New York City, Pleasanton, Calif., North Andover, Mass., and London.

ServiceChannel was named a GAP Inc. Strategic Partner and Under Armour Vendor of the Year, awarded two Nike Vendor Excellence Awards, and named Vendor of the Year by The Professional Retail Store Maintenance Association (PRSM).

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