Mobile asset management

Mobile asset management is managing availability and serviceability of assets used to move, store, secure, protect and control inventory within the supply chain.

Mobile assets are returnable, reusable containers used to transport raw materials, work-in-progress and finished goods through the supply chain. They are typically of high-value, have high-value contents or have a strategic importance attached to them. Some examples of such assests include beer kegs, intermediate bulk containers (IBCs) used in the food and chemical industries, racks for glass and automotive industries, and unit load devices (ULDs) used in the airline industry. Mobile assets can also include rolling cages, collapsible aluminum containers for raw materials, or portable equipment such as surgical instruments and other medical devices in hospitals.

Concerns with mobile asset use

These assets are often in the hands of other entities (such as suppliers, customers, logistics providers and carriers) and out of sight and control of the owning entity. They usually represent a significant capital expenditure for companies and their management and maintenance is resource-intensive. On average, businesses spend 5% of annual revenue on logistics assets, and almost one-fifth of respondents spend more than 10%. The annual costs include the replacement of lost or damaged containers.

Different methods exist to track and manage mobile assets. Today, companies use labor-intensive manual processes to track assets between manufacturers and distributors, which can result in higher supply chain costs and processes that are less reliable due to natural human error. Specific identification of the container’s origin and destination is virtually impossible under this method.

Components of mobile asset management

Mobile asset management solutions can include one or more of these parts:

Outsourced mobile asset management

Mobile asset management providers manage asset operation within the supply chain, directing the activities of a client’s third party logistics company as needed and ensure proper services are performed on the asset (handling, cleaning, maintenance, repair). These providers also study business processes within the supply chain and help optimize each process.

Asset tracking technology

More sophisticated mobile asset management companies use the most advanced means of tracking assets available today, such as radio-frequency identification. RFID automatically captures data on each individual container and can indicate container contents without ever having to open the container. This technology is also combined with software applications that collect, maintain, track and analyze the data and provide customized reporting of the location, status, and audit and maintenance history of each asset.

Flexible pricing options

Management providers typically offer flexible financing options, including pay-per-use, subscription or leasing models. Each financing option provides a predictable monthly asset-related expense.

Benefits of mobile asset management

The major benefits of mobile asset management include:

• Improve visibility of assets in the supply chain
• Meet compliance mandates of customers
• Improve asset tracking and inventory control across multiple facilities
• Reduce loss or damage of goods while in transit
• Streamline business processes having to do with assets
• Reduced labor cost and human error with automatic asset tracking technology

External links

• Do mobile asset management systems provide value?