1. Make sure you have the right leasing AND insurance partner
Having the right leasing partner for equipment, infrastructure, tools and technology assets will make sure you save valuable CAPEX both up front and over the asset’s lifecycle without compromising on the integrity and bottom line of the agreement.
The optimal leasing partner will offer flexibility for you to achieve your business objectives, which could include floating or fixed rates, straight or step payments, warrantees, and appropriate service level agreements.
When you consider a lease agreement, read the agreement carefully. Look out for hidden costs such as swap out or refresh penalties, returning assets in original packaging and any other ‘gotchas’ they are going to hit you with down the road. In the same vein, you also need to evaluate the end of lease process to make sure you do not fall victim to forced lease extensions and nasty surprise damage costs that could escalate overall costs.
Other things to look out for are limitations on which products and brands you are allowed to lease. You want a partner that is supplier agnostic, allowing you to choose any technology hardware brand and supplier that you want from a deep pool of resources.
As for managing risk, insuring equipment, infrastructure, tools and technology assets is an important part of ensuring the longevity and success of your enterprise. Make sure you know who will be insuring the assets – you or the leasing company… and make sure it’s for the right, time period variable amount.
2. Understand the refresh, repair and disposal policies
When leasing, you need to be clear on whether the provider includes disposal or logistical services as part of their service. When the lease period finishes, and it’s time to return the equipment for your new refresh cycle, its fiscally key to know for certain who pays and owns this responsibility.
3. Ensure you have an up-to-date asset management tool
Managing leased equipment, infrastructure, tools and technology throughout the life of the asset is essential to avoid taking on additional expenses from loss, theft, hoarding, and inappropriate spares levels.
Asset Lifecycle Management (ALM) is critical to improve the return on investment for leased assets, avoid internal and external audit consequences, and smoothly manage the adoption of future technology.
Companies that implement an ALM system for leased or owned assets can immediately get a much clearer picture of their asset portfolio than they would otherwise get from a stand-alone Enterprise Resource Planning (ERP) system.
A key differentiator of an ALM system (such as Fulcrum’s CATS ALM Suite) is that it gives field workers all the tools and training necessary to maintain real-time inventory data collection as part of their day-to-day workflow – such as smartphone asset tracking and unique barcode labels and radio frequency identification (RFID) tags.
Additionally, an ALM system can automatically query any IP-enabled equipment connected to the network (via machine-to- machine communication) to monitor items such as location, condition and warranty status in real-time.
This real-time asset information collected and disseminated by an EAM system gives your organization a major competitive advantage. You will have the perspective that comes from the real-time knowledge of any measurable characteristic of your assets including current location, age, condition, performance trends and warranty status.
If you want to get visibility, insight, and control of your leased assets, email [email protected] today.