When it comes to facilities management, the question of whether inventory is an asset or not can be a difficult one to answer. After all, inventory can be a valuable resource for businesses, but it can also be a financial burden. In this blog, we’ll explore the role of facilities management in determining whether inventory is an asset or not.
What is Facilities Management?
Facilities management is the business practice of managing the day-to-day operations of a business’s physical assets. This includes managing the maintenance, repair, and up-keep of buildings and equipment. It also includes managing the inventory of materials and supplies needed for those assets.
How Does Facilities Management Determine Whether Inventory is an Asset or Not?
Determining whether inventory is an asset or not involves evaluating the cost and benefit of the inventory. If the inventory is regularly used and has a positive return on investment, then it can be considered an asset. If the inventory is rarely used, or has a negative return on investment, then it is likely not an asset.
Why is it Important to Know Whether Inventory is an Asset or Not?
Knowing whether inventory is an asset or not is important for efficient facilities management. If inventory is an asset, then it should be tracked, managed, and replenished as needed. If inventory is not an asset, then it should be disposed of or sold off in order to reduce costs.
Conclusion
Inventory can be a valuable asset for businesses, but it can also be a financial burden. Determining whether inventory is an asset or not is an important job for facilities managers. By evaluating the cost and benefit of inventory, facilities managers can determine whether it is an asset or not and manage it accordingly.
