Welcome to our third asset management blog. It’s a big (but important) topic!
If you’ve been following along (see blog 1 on optimising asset management and blog 2 on enhancing financial visibility), it’s no secret that we’re discussing the new AM (asset management) capabilities of Microsoft Dynamics 365 Finance and Operations, and the business challenges it addresses.
If you rely on complex machinery and equipment (your assets), you’ve likely found yourself grappling with operational hurdles like outdated systems, fragmented data, disjointed supply chain management, and communication breakdowns.
And those hurdles aren’t making life – or business any easier or more streamlined.
Let’s talk about integration issues
Outdated systems pose several issues when it comes to asset management. The first is obviously the age and limitations of a standalone system. While it’s likely partially integrated with your ERP, you are always at risk should that integration fail - and hey presto, you lose all visibility of your assets.
Perhaps when you made the decision to integrate your third-party solution into your ERP, someone decided to rationalise how much asset management solution data was shared. And in hindsight, that was probably a shortsighted decision.
Why? Asset management has multiple aspects, and electing only to share some of the information (for example, restricting it to the supply function for the inventory held for repairs) limits the value of the asset management solution and your ERP.
This approach means neither business application can shine. For example, your ERP isn’t aware of known shutdown periods and schedules, and the asset management system isn’t across all the external maintenance costs, which erodes an asset’s ability to deliver an ROI. In the case of an emergency shutdown, anyone who relies on the ERP for scheduling production runs can be in the dark.
To top it off, users must switch between two different systems (if they even have access to both) to figure out what's happening - and why.
How about workflow automation and process optimisation that won’t work?
Even with integration, you can't automate your workflows if they're not in the same system.
Whereas if your asset management is an integral part of your ERP (along with procurement, sourcing, product information management, warehousing, etc.), that direct link between each business function means the automated workflows work - seamlessly. So, an action in one of these functions has an automatic knock-on to the next – and information is both shared and updated in real-time.
Which brings us to communication breakdowns.
When working with several systems, teams are frequently forced to rely on back-and-forth communication (think phone, Teams, emails) to share updates. This can delay responses and lead to mistakes - particularly if each party needs to enter the required data into separate systems.
The supply chain management struggle
Employee checks stock in a Warehouse
Effective and efficient supply chain management is crucial for asset-heavy industries. Again, this is impacted when you rely on a third-party asset management system which is either standalone or integrated with your ERP.
Say, for example, you make filled chocolate bars. To minimise cross-contamination of ingredients (and save reassembly time after washup), the machine parts need to be colour-coded as a second step. So, when you identify the need for a replacement part, you have to ask someone else (or access another system) to check not only if the part is in stock but also the colour and if someone is available to apply the coating before your engineer fits the part.
As service requests, inventory checking, and purchasing are all separate functions, streamlining the supply chain function to keep your assets running (and the chocolate flowing freely) can be fraught with delays and confusion.
Additionally, you have no visibility of stock numbers, so unless you proactively request to monitor levels, you are in danger of being caught short when you can least afford it. Or conversely, risk overordering inventory based on assumptions, not analytics.
You need real-time data analytics for informed decision-making
Managing assets encompasses understanding when one of your machines is underperforming or overly failure-prone compared with the lifecycle projections supplied by the OEM.
If you use a standalone asset management solution, some of the data needed to establish if an asset is ready for replacement will be in that application. However, as the application isn’t used by everyone in the business, collating the real-time data needed to make a case for purchasing a new device – and raising the capital for its purchase - can be a longwinded, slow, and complex process. And you have little visibility of where that purchase request is until you’re handed down a yes, no, or ‘need more information’ request.
For some, requesting capital expenditure can often be a paper-based process – which obviously comes with inherent risks. In this digital age, paper is notorious for being mislaid or ignored.
How can Dynamics 365 Finance and Operations streamline your asset management function?
With Microsoft Dynamics 365 Finance and Operations (F&O), you overcome all the issues that come with having a standalone (even if integrated) asset management solution. You’ll have:
- Workflow automation and process optimisation that works! As asset management is within your ERP, not just integrated, you can enable complex workflows to ensure your assets are reported on, serviced, maintained, or have reached preset milestones without lifting a finger or requesting access to data from another application. Every action is automated and optimised to retain, maintain, and drive value from your devices.
- Access to real-time data for better decision-making: As AM is an integral part of D365 F&O, there are no barriers to collating the information needed to make fast and well-informed decisions. You’ll be able to analyse data trends effectively, flagging issues with assets and prompting your teams to consider replacements or to take more proactive maintenance measures. Additionally, the process of requesting capital for new investments is managed by a workflow that factors in spending limits, chains of approval, and more.
- A streamlined supply chain process: Your people can create work orders and service orders that automatically communicate directly with your procurement and service departments. This minimises the risk of errors - such as misreading handwritten purchase requests, enhances visibility into real-time stock levels, and coordinates schedules. For example, when your team identifies that a machine requires parts for repair, the system can automatically check your inventory and generate purchase orders for items that are low in stock. This proactive approach helps prevent downtime, ensuring that assets are operational and always generating revenue.
Microsoft Dynamics 365 F&O offers a comprehensive solution that effectively streamlines your operations. By removing the challenges of using a separate asset management solution, everything becomes easier.
