February 3, 2018

Is It An Asset If You Don’t Know Where It Is?

IoT enabled asset management will improve your balance sheet

Have you ever wondered how many millions of items of value, bought or leased by companies, are lost or unaccounted for?

IoT to the rescue! Why not digitize your assets? Doing so will not only provide you with a holistic view of the exact location of your assets, but it will also improve your balance sheet. The reason for that is that purchased corporate items are accounted for as assets in a company balance sheet. However, if a company doesn´t know where their assets are it will be hard to keep them on the books.

Many examples are showing this. For instance, companies that provide gas cylinders for hospitals, welding, and other applications need to account and track the cylinders.

The same goes for wooden pallets that shipping companies use. They have a nominal value, yet when in ten´s of millions they will make a significant positive impact on the balance sheet when accounted for.

A great number of these assets are also on lease or under asset management programs which auto-renew.

Leasing companies make millions on rent, especially for nominal value items. Although the rent per month for these items is not much, when you add up millions it becomes a profitable and lucrative source of incremental income for the finance companies.

Leasing companies can include an “evergreen “ clause which automatically renews the lease at the end of the term, with another term of the same length if not canceled within a notification period.

Perhaps it seems trivial, yet most companies tend to pay little attention to low-value items on a lease, often paying many times over for equipment that has been depreciated fully.

IoT and blockchain enabled tracking solutions for your assets will make a difference in your balance sheet. Furthermore, the agility and dynamic manner in which data is articulated and presented will bring smiles to any CFO.

Choose a partner to help you visualize your assets, not by the complexity of the reports but by the simplicity provided.

We are happy to elaborate on how Tele 2 IoT can help you locate, orchestrate, secure, and analyze your assets. Not only do we bring in a great team and great solutions, but we also introduce you to our world-class partner eco-system proven with connected devices in more than 160 countries.

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