Published: June 16, 2025  Updated: June 13, 2025

7 Common Asset Management Challenges and How to Solve Them

Industries and companies have assets. Equipment, vehicles, structures, etc. To properly care for them, you have to overcome at least seven asset management challenges. This article will discuss those challenges, suggest solutions, and we'll see how a computerized maintenance management system (CMMS) can help.

Remember the adage of identifying the problem before you can solve it. With a full understanding, you have more options for solutions.

Enhancing Asset Visibility for Smarter Asset Management

A fundamental challenge—knowing precisely what assets an organization owns, where they are located, and their current condition. This may sound unbelievable, but some companies don't have a full understanding of what they have. And maybe they don't know the location of everything.

Further lack of information includes not knowing the specifications and the functions of the assets. Without all of this information, you can't make correct decisions on maintenance or track asset lifespan.

Solutions -

• Comprehensive Asset Registry - Develop a detailed database capturing essential asset information, including identification numbers, specifications, purchase dates, warranties, and location.
• Asset Tagging and Barcoding - Assign unique identifiers to each piece of equipment or vehicle for easy tracking and management.
• IoT and Sensor Technology - Employ internet-connected devices and sensors to monitor asset location, condition, and usage in real time.
• Regular Asset Audits - Conduct physical inspections to verify conditions, and accuracy of the records.
• CMMS Software – This acts as the central database for your assets/equipment records. Create your list, including location. Input all the relevant information from the manufacturer. Keep a record of any equipment readings to help shape preventive maintenance (PM) policies.

Beyond the listings, the system provides key performance indicators (KPIs) to judge the equipment's "health" and operational capacity. This information comes from maintenance history—work orders, depreciation, etc.

Ensuring Accurate Asset Data for Effective Decision-Making

Even if you have a lot of the above information, you need further. You need to understand the various metrics of asset management. These include—

• Overall Equipment Effectiveness (OOE)
• Mean Time Between Failures (MTBF)
• Mean Time To Repair (MTTR)

And many others. Inaccurate or inconsistent data can lead to costly errors and increased downtime.

Solutions -

• Data Standardization - Establish clear guidelines for data collection, entry, and validation.
• Data Cleaning and Validation - Regularly review and correct data errors and inconsistencies.
• Data Automation - Utilize automated data capture methods, such as barcode scanning and integration with other systems.
• Data Governance - Implement policies and procedures for data management and security.
• CMMS Software - As mentioned above, the system keeps a history of information. It gathers the information for you to have the correct KPIs with accurate information. The CMMS organizes the data for you to have an effective analysis.

This information helps you in life cycle cost analysis and replacement planning, and so much more.

This leads us to the next of the seven asset management challenges.

Discover how streamlined maintenance processes can elevate production. Learn more.

Streamlining Asset Lifecycle Planning and Maintenance

Assets age and wear out. Regular PMs will delay the time when you replace them. Without proper tracking of the lifecycle, you risk the asset "taking its last breath," so to speak, before you have a plan.

Solutions -

• Asset Condition Monitoring - Implement regular inspections and predictive maintenance to assess asset health and performance.
• Life Cycle Cost Analysis - Evaluate the total cost of ownership for assets, considering acquisition, operation, maintenance, and disposal costs. Part of this includes depreciation tracking.
• Replacement Planning - Develop a systematic approach to asset replacement, considering factors such as age, condition, and economic viability.
• Asset Disposal and Recycling - Establish procedures for environmentally responsible asset disposal and recycling.
• CMMS Software – You can set up the system to track depreciation on your assets. You have records of maintenance costs that include parts. You use these statistics, numbers, and reports for better decisions about when to replace the assets.

Strategies for Controlling and Optimizing Asset Management Costs

You have to consider maintenance an expense. However, you do have options to keep down those costs. Remember, any unplanned downtime, extra labor, and emergency purchases for parts increase those costs.

Solutions -

• Maintenance Budgeting - Sure, budgeting must happen. Just remember to allocate enough for the necessary upkeep of the assets.
• Cost Tracking – This follows having a budget. You need to accurately track where the money goes.
• Preventive Maintenance - Implement a proactive strategy. Routine inspections, cleaning, and parts replacements actually reduce overall costs. You have fewer incidents of unplanned downtime. You reduce safety hazards.
• Maintenance Optimization – This refers to the proper allocation of resources. Planning and scheduling the activities for efficiency and effectiveness.
• CMMS Software – As mentioned above, the system helps you stay organized. Developing your PMs list. Creating work orders. Using the CMMS calendar to schedule jobs. Plus, those reports show the costs of various activities.

Ready to revolutionize your maintenance department? Schedule a live demo today.

Staying Compliant with Asset Management Regulations

Many industries need to adhere to stringent regulations that impact asset management. Non-compliance can result in hefty fines, legal issues, and reputational damage.

Solutions -

• Regulatory Awareness - Stay informed about relevant regulations and industry standards.
• Compliance Documentation - Develop and maintain comprehensive records to show auditors when they visit.
• Risk Assessment - Identify potential compliance risks and implement mitigation strategies.
• Auditing and Monitoring - Conduct regular audits to assess compliance status.
• CMMS Software - The system has easily accessible reports and histories. You can generate the needed reports for the auditors.

Improving Asset Utilization and Performance

Underutilized assets represent a waste of resources.

Solutions -

• Training – this should top the list. Effective training for the proper operation of the equipment. Usually, problems occur when the operator tries to go outside the functioning capacity of the asset.
• Examples include overuse, underuse, over/under lubrication, using incorrect resources, and using the asset outside of its original purpose.
• Analysis - Evaluate asset usage patterns. Of course, many other factors impact this, so stay aware of the circumstances existing during the time of analysis.
• CMMS Role - A CMMS can track asset usage and generate reports to identify underutilized assets. You have PM schedules to help maintain reliability. Again, use those readings. Also, look at various reports of failure/cause/action to identify patterns and problems.

Reducing Operational Risk with Asset Management Best Practices

Various circumstances affect your assets. These include weather, temperature, unexpected failure, natural disasters, cyberattacks, and many more.

Solutions -

• Risk Assessment - Identify potential problems and their impact on assets.
• Risk Mitigation - Develop and implement risk mitigation strategies. Train employees regarding these.
• Insurance Coverage - Ensure adequate insurance protection for assets.
• Business Continuity Planning - Create plans for responding to asset-related disruptions. Have contingencies for various circumstances and emergencies.
• CMMS Software – While the CMMS won't assist you with much of the above, it can offer guidance on asset safety. For instance, you can reduce the risk of injury or worse, and reduce the risk of further problems. How? By attaching safety protocols and checklists to the work orders.

You create your checklists in the CMMS and have them available for the appropriate jobs. You have a list of personal protection equipment (PPE) that technicians need for specific work.

You can have emergency work orders in place should something occur. That way, technicians stay prepared and have clear instructions on emergency solutions.

Solving Asset Management Challenges with CMMS

By planning ahead for the seven asset management challenges, you can stay on top of your overall maintenance management program. Discuss the various obstacles and find the best solution for each.

Understand what a CMMS can do for your operations. Used properly, it helps bring organization to your PM and general maintenance program. The best system to use comes from Mapcon Technologies. A call to 800-922-4336 gives you a free demonstration and answers to how an easy-to-use system answers all seven challenges.