Managing Mobile Assets in SAP…
…. starts with standard S/4HANA, but needs an embedded industry add-on to cover the range of functionalities needed for effective and professional Mobile Asset/Equipment Lifecycle Management. Think about processes such as tracking an asset’s status, location, availability and condition, all of which are essential in managing mobile assets optimally. Beyond these foundational needs, tracking asset performance is crucial, particularly when renting or leasing to customers. Metrics such as utilization, profit and loss (P&L), and lifetime contribution per asset are indispensable for making informed decisions and maximizing asset value.
Understanding Mobile Assets
A mobile asset is any movable piece of equipment or device crucial for business operations but not tied to a fixed location. These can range from small to medium-sized equipment such as containers or medical devices, to larger assets such as vehicle fleets, heavy machinery, pumps or robotics. Efficient management of these assets ensures their optimal utilization, reduces downtime and minimizes operational risks. For companies with large fleets, managing mobile assets also means tracking their location, condition and performance in real-time, while connecting and capturing this in one central digital twin within SAP S/4HANA. Many uniquely configured processes come into play, some of which you will read more about in this article.
Typical SAP clients which benefit from professional Mobile Asset Management
Professional Mobile Asset Management is crucial for organizations with large fleets of mobile assets or high-value, widely distributed equipment. It is relevant across numerous industries and for companies transitioning to subscription-based or pay-per-use business models.
Typical clients include:
1. Industrial Manufacturing Companies
While industrial manufacturing companies use professional asset management to track and schedule equipment, rental and leasing companies benefit from accurate billing, proactive maintenance management as well as asset utilization and lifecycle management.
2. Engineering and Construction Companies
For effective equipment and material management, engineering and construction companies can leverage professional asset management to optimize resource allocation, reduce waste, improve project timelines, increase productivity and save costs across all job sites.
3. Medical Equipment Manufacturers and Leased Equipment Providers
Companies that own or lease medical equipment can utilize professional asset management to ensure that all equipment is properly maintained and readily available for use. This will lead to improved operational efficiency, reduced downtime and enhanced compliance with regulatory requirements.
4. Wholesale and Distribution Companies
Professional asset management is vital for distributors and dealers to streamline equipment lifecycles, ensure supply chain resilience and enhance operational efficiency. It enables end-to-end visibility and optimized utilization rates.
5. Agricultural and Farming Operations Companies
Customers within agricultural and farming operations can utilize professional asset management to enhance the efficiency of their equipment by ensuring timely maintenance, improving resource allocation and ultimately increasing productivity and profitability.
6. Oil and Gas Service Companies
Companies in the oil and gas industry can benefit from professional asset management by effectively managing field equipment such as drills, pumps and compressors, which helps reduce equipment loss and optimize scheduling for maintenance and operations.
Key challenges that customers face when managing mobile assets
Data Management: Collecting, analyzing and utilizing data from mobile assets can be overwhelming. Companies may struggle with integrating data from various sources and using it effectively to inform decision-making and improve operational efficiency.
Maintenance Management: Timely maintenance of equipment is critical to preventing breakdowns and extending asset life. However, companies often face challenges in scheduling and performing maintenance efficiently, resulting in costly downtime and repair expenses.
Resource Allocation: Efficiently allocating resources among various projects and locations can be difficult, especially when dealing with fluctuating demands. Companies may encounter hurdles in optimizing equipment deployment and utilization based on project needs.
Cost Management: Managing the costs associated with mobile assets—such as purchase, maintenance, insurance and operation—can be complex. Companies may find it difficult to balance these costs with the need for high-quality equipment and services.
Asset Visibility and Tracking: Companies often also grapple to maintain real-time visibility over their mobile assets. Without accurate tracking, it’s difficult to know where assets are located or how they are being used.
Additional best practices
While mobile asset management tools can help businesses streamline operations, their success depends on how well they are implemented and maintained over time. Below are some best practices for customers looking for a mobile asset management tool to consider:
1. Rental and Leasing processes
Effective management of rental and leasing processes is a cornerstone of professional mobile asset management. This includes overseeing internal and commercial fleet rentals, streamlining operational workflows and ensuring accurate billing and efficient rate calculations. By optimizing these processes, businesses can maximize fleet utilization, enhance profitability and deliver superior service to their customers.
2. Lifecycle Management and Maintenance
To extend the lifecycle of mobile assets, robust maintenance planning is essential. A mobile asset management tool allows businesses to set up preventive maintenance schedules, which are triggered based on usage data rather than just time-based intervals. Maintenance teams can forecast when an asset is likely to need repairs or replacement parts, allowing them to plan and avoid unexpected breakdowns. Predictive maintenance not only reduces repair costs but also minimizes the time assets spend out of service.
3. Centralized Asset Data and Data-Driven Decision Making
Consolidating mobile asset data ensures that information is up-to-date and accessible across different departments. A centralized database improves accuracy and prevents duplicate records. Employees can easily access asset history, maintenance logs, warranty information and usage reports, leading to improved decision-making and resource allocation. While teams can make more informed decisions, overall efficiency is also improved since a dedicated report building resource is no longer required.
4. Interaction with Other Business Functions
Mobile asset management should not operate in isolation; instead, it should be seamlessly connected to other key business processes, including finance, sales and procurement. This holistic approach ensures greater organizational efficiency by facilitating improved communication and collaboration across departments, leading to more informed decision-making and streamlined operations.
5. Asset Identification and Tracking
A crucial element when managing mobile assets is to ensure they are properly identified. Where possible, assets should be assigned unique identification numbers (UID’s) and GPS sensors for tracking. This will allow real-time monitoring of an asset’s location, usage and performance data. Furthermore, these assets will maintain correct financial and accounting representation throughout their lifecycle, from acquisition to retirement.
6. Real-Time Asset Monitoring through IOT
Real-time monitoring is crucial for high-value mobile assets or those that require constant oversight, such as a fleet of expensive field equipment. Solutions with IoT capabilities can connect mobile assets to the cloud, providing live data on their performance, condition and location. By leveraging this data, organizations can gain valuable insights in usage optimization, maintenance improvement, as well as overall risks and failures reduction. This will allow for smarter, data-driven decision-making.
7. Remarketing
Establishing a clear strategy for remarketing mobile assets is essential for maximizing return on investment. Companies should evaluate the condition and market value of their assets as they approach the end of their lifecycle. By implementing a structured approach to asset resale, recycling or donation organizations can recapture value from their investments.
FIT Global: Dynamic Mobile Asset Management throughout the entire lifecycle
Managing mobile assets effectively is vital for streamlining business operations and cutting costs.
What sets FIT Global apart from competitors? Not only do our solutions provide comprehensive tools for tracking, maintaining and optimizing mobile assets, they also offer a holistic end-to-end approach for managing the entire lifecycle of the equipment efficiently and effectively.
From rental companies to large OEM’s and dealers, customers can benefit from a wide range of functionalities of FIT Global solutions – whether it’s for the overall management of assets and equipment, or within specific business areas such as rental, leasing, sales and purchase, service, or parts management.
The use of our solutions will result in:
- Improved asset utilization and operational efficiency
- Increased margins due to higher revenue and reduced costs
- Improved customer service levels
Let’s connect!
Are you interested in learning more about mobile asset management and our solutions for potential customers? If so, contact us and we can schedule a call to discuss this further.
