Our asset management consultants have the experience and skill to assist you in reviewing both your fixed asset and inventory processes to enhance your bottom-line.
Fixed Asset Managment
Independent Asset Inventory and Reconciliation to fixed assets ledger. Successfully implementing asset tracking into an organization necessarily requires a considerable change in policies, processes and responsibilities. The stark difference between asset tracking (or management) and fixed asset accounting is often under-appreciated despite today’s regulatory environment which mandates significantly enhanced controls. Systems operating based simply on momentum often breed weaknesses.
Common Issues in Fixed Assets Management
- Inaccurate financial and non-financial data on fixed assets.
- Obsolete and strained fixed assets management environment.
- Unclear fixed assets process definition.
- Overwhelming/bulging fixed asset purchases.
- Multi-location business challenge.
How We Can Help
Our experienced Consultants can assist with any of the following:
- One-off or cyclical fixed asset inventory and reconciliation;
- Sale and installation of tested asset management software;
- Fixed asset process review, re-engineering and auditing;
- Fixed asset policy advisory;
- Training of staff with fixed asset responsibilities;
- FIRS and SAS compliance fixed asset process; and
- Fortification of the existing fixed asset system.
PAC Model
- Planning – a significant proportion of our project time is dedicated to the planning phase in order to entrench a firm foundation for the overall success of a given project.
- Fixed Assets Inventory – the foundation of any effective asset management system is a comprehensive and accurate data on assets. The objective of this phase of the project is that an updated fixed assets register can be effectively achieved.
- Fixed Assets Tagging and Automated Recording – Proper assets tagging and bar coding enhances physical as well as financial controls over assets. Traditional controls over assets are often beset by systemic weaknesses leading to inaccurate data with often dire financial implications. We, therefore, assist in bar coding your fixed assets to facilitate routine audit of assets.
- Financial Reconciliation – assets inventory result is only as good insofar as it helps in updating the fixed assets ledger. This helps the accounting function in its reporting responsibilities. We employ cutting-edge technological solution and adhere to best practices in internal controls to fortify future accurate assets data.
- Installation of Fixed Assets Software - PAC recommends Assetware Manager Application to its numerous clients because of its extreme flexibility and inherent controls. Assetware Manager meets the need of all business irrespective of the business life cycle.
Benefits
- There are real bottom-line benefits to fixed asset management. Independent research has estimated that many companies are overspending by at least 20% because of under-utilisation, inefficient maintenance and petty theft of their assets;
- Asset management is an important part of regulatory compliance;
- Visible reduction in accounting irregularities;
- Accurate financial management and reporting; and
- Better overall risk management.
Inventory Management
Inventory Management and Inventory Control must be designed to meet the dictates of the marketplace and support the company's strategic plan. The many changes in market demand, new opportunities due to worldwide marketing, global sourcing of materials, and new manufacturing technology, means that many companies need to change their Inventory Management approaches and change the processes for Inventory Control.
The ability to scan goods received at a factory, warehouse, distribution centre or store, and to scan goods as they are despatched or sold to the consumer, helps to give a much better view of stock levels at each point. Bar code scanning (or reading RFID tags) provides speed and accuracy so that uncertainty is reduced and more control can be exercised.
Stock levels are better managed and profitably so. If there are variables that have not been captured in the system, a semi-automated approach could be used and a suggested order is triggered so that buyers can modify it according to their knowledge of, for example, seasonal or market variations
There are significant cost savings owing to fewer errors as automation greatly improves efficiency and because greater accuracy and confidence allows buffer stocks to be reduced without adversely impacting fulfilment rates.
How PAC can help
- In installation of data capture technologies including bar codes and RFID, and of electronic communications which improves the management of inventory.
- Comprehensive audit of your stocks can be carried out by our consultants to determine obsolete and/or over stocking. Invariably this will improve management of your stock, increase sales, lower levels of stock and associated costs, better use of production and distribution capacities, fewer write-offs etc.
- Develop the basic building blocks for the inventory management system and inventory control activities such as:
- Sales Forecasting or Demand Management;
- Sales and Operations Planning;
- Production Planning;
- Material Requirements Planning;
- Inventory Reduction.
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