In today’s digital business environment, there is no shortage of software solutions that can help you run your company. Everything from payroll and hiring to managing EHS and maintenance activities is largely streamlined through thoughtfully-created software and platforms.
Enterprise Asset Management software is one solution companies should consider exploring. Let’s take a closer look at its features and benefits, why organizations use it, and how you can tap into its potential.
What Is Enterprise Asset Management Software?
Enterprise Asset Management (EAM) software is designed to manage a company’s physical assets to help maximize their use. As a result, this allows organizations to save money, improve their quality and efficiency, and put health and safety as top priorities.
EAM is largely used by companies with large, expensive physical assets, such as vehicles, machines, and other heavy equipment. Industries like mining, aerospace, oil and gas, energy, and shipping are typical users of EAM.
Traditionally, companies would use pen and paper or complicated spreadsheets to manually manage their physical assets. But as digital technology continues to evolve, companies are finding that software can simplify every part of the process, in addition to saving time and money.
Aside from the surface-layer time and money saving benefits, EAM software is proving to be a highly regarded tool for other reasons. It helps ensure that high-value assets are able to function the way they are designed to so that enterprises can reduce their costs and risks and optimize their business.
For example, EAM software might alert an operator that a machine part is likely to fail, which can then trigger a series of events to dispatch a maintenance worker and secure the required materials needed to repair the part BEFORE it can cause damage or loss of productivity.
In addition, EAM may also help to facilitate a better supply chain. By automating some tasks, EAM can help you better manage inventory needs to avoid expensive rush orders or the potential of using less reliable suppliers.
Functions and Features
EAM features can vary by vendor, but the core functions generally remain the same. The biggest feature is that EAM keeps a detailed database of all physical assets, their performance history, characteristics, and any compliance-related documents. Most EAM software contains its own financial and analytical tools to increase its value to businesses.
Another common function is monitoring the asset’s lifecycle. Every major stage of an asset, from design to development, is documented within the system. As previously mentioned, it also plays a crucial role in supply chain and inventory management, procurement, demand planning, and forecasting to help keep costs low.
How Is Enterprise Asset Management Software Different from CMMS?
At first glance, it’s not easy to tell the difference between EAM and a computerized maintenance management system (CMMS). They’re alike in many ways, but their differences lie in their most common uses.
When compared side by side, CMMS doesn’t offer as many features and functions as EAM. Things like fleet management, warranty claims associated with assets, asset maintenance tracking, interactive documents or visuals, and energy monitoring are usually only available with EAM.
Think of CMMS as a critical component of EAM. Without CMMS, EAM isn’t capable of delivering many of its features and benefits. EAM is a more encompassing solution, as it’s more sophisticated and robust in terms of functionality.
EAM vs. CMMS: Which One Is Best for My Company?
There’s not necessarily a right or wrong answer when deciding between EAM or CMMS software. It largely depends on your company’s budget, goals, and unique needs, and how much the extra functionality of EAM means to your company. CMMS continues to become more advanced, offering higher-level functions than in previous years, but EAM still remains more powerful.
If you’re tasked with investing your company’s software architecture, it’s best to compare the two side by side to see which will ultimately deliver your best ROI.