Utilities are faced with increasing consumer demands, escalating costs, ageing infrastructures and manpower challenges. Utilities are under increasing pressure to carry out business operations whilst stringing together limited resources and assets to meet growing demands and stakeholder expectations.
This is where asset management can help. The adoption of effective asset management will help to enhance service delivery and extract the most out of the utility’s existing infrastructure. It will help to reduce costs and deliver essential services to customers in a more efficient and cost-effective manner.
Utilities are coming to realize the value of asset management as it promises to offset many of the challenges that face the industry today such as financial issues, and sustainability.
Asset tracking alleviates pressure
Lack of finance is mostly to blame for slow infrastructure upgrades and maintenance. Utilities have to operate with aging infrastructure that cannot cope with increasing demands. Additional strain is being placed on already-aged facilities which are desperate for an upgrade.
However, asset management can help alleviate some of the financial stress facing utility companies today: asset tracking can enhance financial planning and extend usable life.
Asset tracking helps to maximize a ratepayers’ return on investments, reduce lifecycle costs and extend the lifespan of existing assets. Utilities that make use of an asset management system are able to monitor what assets it owns and are available for use, the current condition of all assets, how each asset is performing in terms of efficiency and productivity and other data.
With an asset tracking system, utilities can easily calculate the expected output of a particular asset over its lifespan. Utilities will have the ability to tap into essential data such as the cost per output unit—this can be highly beneficial for budgeting purposes.
With detailed data on an asset’s history, maintenance can be carried out more routinely-this helps organizations to maximize the usable life for major asset investments.
All of this data leads to advanced analysis capabilities, providing a framework for analyzing the efficiency of the existing infrastructure and making comparisons between alternate processes to maximizing every penny spent.
When increased demand forces a utility to upgrade its infrastructure, the right cost-efficiency information will be key to making the right decisions from the outset. The information will go a long way as the utility plans for the future while maintaining lower costs.
Asset management is critical for utility companies if they intend to move forward in the face of escalating costs and power demands. An effective asset tracking system will be critical if the utility is to meet customer needs, whilst accommodating financial limitations that exist across most organizations in the world today.