The global supply chain is a dynamic, interconnected network vital to the success of industries worldwide. While there are many possible causes for disruptions, including economic, political, and environmental, companies can mitigate some risk through robust asset management programs that increase overall uptime and reliability.
What is asset management in supply chain operations?
Asset management in supply chain operations is a comprehensive approach to managing the physical assets and equipment essential for the smooth functioning of the supply chain. This involves strategic planning, acquisition, maintenance, and disposal of assets to ensure they are utilized efficiently and effectively. The goal is to maximize the value and performance of these assets while minimizing costs and downtime.
Common asset types in supply chain operations
Every link in the supply chain involves a wide variety of assets and equipment, including:
- Transportation: Trucks and railers, railway cars, shipping containers, aircraft and forklifts and pallet jacks
- Warehousing and storage: Racking, temperature-controlled units, conveyor, automated storage, and retrieval systems
- Material handling equipment: Crane systems, conveyors and sorters, stackers and reach trucks, scissor lifts and order pickers
- Logistics and distribution: Distribution centers, cross-docking facilities, loading docks
What sets these assets apart from other industries is the amount of interconnectedness. Ideally, these assets collectively create an unbroken chain, facilitating the seamless movement of large amounts of products across vast distances. But because everything is so closely connected, even small disruptions can have a large effect.
What are the benefits of asset management in the supply chain?
Strong asset management in supply chain operations supports the efficiency, reliability, and cost-effectiveness of logistics and distribution processes. When companies properly maintain assets like trucks, trailers, railway cars, and shipping containers, they can operate at optimal levels, reducing the risk of costly delays. For example, a poorly maintained truck fleet leads to frequent breakdowns, causing delayed shipments that could miss critical delivery windows. A lack of maintenance increases operational costs from emergency repairs and overtime and has a knock-on effect, disrupting the entire supply chain and leading to stockouts or overstock situations at distribution centers.
Issues further along the chain are also an issue. In warehousing, assets like racking systems, conveyor systems, and automated storage and retrieval systems need regular maintenance to prevent malfunctions that can halt operations and lead to significant downtime. Without proper asset management, these issues can cascade, affecting multiple stages of the supply chain and ultimately impacting customer satisfaction and your company’s reputation.
What are best practices for supply chain assets?
Like with all assets and equipment, there are advantages to implementing robust, proactive maintenance programs that address every stap in the asset lifecycle, from procurement to disposal. There are also some best practices that are more specific to the industry.
Real-time asset tracking
By leveraging advanced technologies like GPS, RFID, and IoT sensors, companies can continuously monitor the exact location and status of their assets. This level of visibility is essential for ensuring that assets are where they should be, which helps to minimize delays, losses, and theft. Real-time data also plays a crucial role in optimizing routes and logistics, allowing for dynamic adjustments based on current conditions. For example, if a shipment is delayed due to traffic or weather, real-time tracking can help reroute it quickly, ensuring that the supply chain remains efficient and responsive.
Preventive and predictive maintenance
Predictive maintenance is a proactive approach to managing the transportation fleet, which is a cornerstone of supply chain operations. By using data analytics, companies can predict when maintenance is needed for their trucks, ships, and aircraft based on usage patterns, environmental conditions, and historical data. This not only reduces the likelihood of unexpected breakdowns but also minimizes downtime and maintenance costs. A well-maintained fleet is crucial for meeting the demands of the supply chain, ensuring that goods are delivered on time and in good condition. Predictive maintenance also helps in extending the lifespan of assets, making it a cost-effective and reliable strategy.
Collaborative asset management
Sharing maintenance schedules, performance data, and best practices can help maintain a high level of asset reliability and availability. For example, if a supplier knows when a critical piece of equipment is due for maintenance, they can plan their production schedules, avoiding bottlenecks. A collaborative approach fosters a culture of transparency and trust, which is essential for the smooth operation of the supply chain.
Strong relationships can also lead to more effective communication and problem-solving. When suppliers and partners are aligned, they can quickly address issues and implement solutions, reducing the risk of delays and disruptions. This alignment also allows for better coordination in emergency situations, such as unexpected equipment failures or sudden changes in demand. By working closely with suppliers and partners, companies can create a more resilient and responsive supply chain, ultimately enhancing overall efficiency and customer satisfaction.
The benefits of mobile apps for maintenance technicians in the supply chain
A mobile app for maintenance technicians working on large assets in the supply chain automates data capture and streamlines communication, helping teams implement best practices.
Real-time access to critical asset information
With a mobile app, a technician who is working on a massive conveyor belt system in a distribution center can instantly access the maintenance history, repair logs, and diagnostic data for that specific conveyor belt. Immediate access allows the technician to quickly identify the root cause of a malfunction, such as a recurring issue with a particular motor.
Support through complex maintenance procedures
Large assets, like industrial cranes used in ports, often require intricate and precise maintenance. A mobile app can provide step-by-step checklists and visual aids, such as diagrams and videos, to guide the technician through the process. For example, when a technician needs to replace a hydraulic pump on a crane, the app can show them the exact sequence of steps, highlight safety precautions, and even provide interactive 3D models to help them understand the internal components. This ensures that the technician performs the task correctly, minimizing the risk of errors and extending the lifespan of the crane.
Seamless communication between field technicians and maintenance lead
When a technician is troubleshooting a large refrigeration unit in a warehouse, they can use the mobile app to communicate directly with the central maintenance team. If the technician encounters an issue they can’t resolve on their own, they can send photos, videos, and detailed descriptions of the problem. The central team can then provide immediate guidance, suggest alternative solutions, or dispatch a more experienced technician. Real-time communication not only speeds up problem resolution but also ensures that the central team has a clear and up-to-date understanding of the asset’s condition, allowing for better strategic planning and resource allocation.
Streamlined task management and reporting
When a technician completes a maintenance task on a large forklift, they can log the details, including the parts used and the time taken, directly into the app. This feature eliminates the need for manual paperwork and reduces the risk of errors. If the technician needs a specific part, they can request it through the app, and the central team can ensure that the part is delivered to the site promptly. Additionally, the app can be used to report any issues or anomalies, such as unusual wear patterns or unexpected performance drops, which can be crucial for preventive maintenance. This streamlined process helps in maintaining accurate records and ensures that the forklift is always in optimal working conditions.
Modern asset management supports supply chain logistics
Modern asset management maximizes asset performance by providing full visibility into how assets are functioning, enabling timely and effective maintenance for more uptime. Teams can simplify task management with easy-to-use checklists and tracking tools, while preventive maintenance features reduce repair costs while improving reliability. Cost forecasting features help companies budget better by allowing them to predict expenses based on historical maintenance and repairs data.
By Jonathan Davis
Jonathan writes about asset management, maintenance software, and SaaS solutions in his role as a digital content creator at Eptura. He covers trends across industries, including fleet, manufacturing, healthcare, and hospitality, with a focus on delivering thought leadership with actionable insights. Earlier in his career, he wrote textbooks, edited NPC dialogue for video games, and taught English as a foreign language. He holds a master's degree in journalism.
