The Capability to Manage Physical Assets

A physical asset, also known as a tangible asset, is an item with economic, commercial or exchange value that has a material existence. For most businesses, physical assets usually refer to properties, equipment and inventory. Managing physical assets effectively is crucial for many businesses! Whether it’s equipment, facilities, vehicles or other tangible resources, proper management ensures optimal use, maintenance and cost-effectiveness. In asset management, the effective handling of physical assets is a critical component of your overall strategy. These assets can range from simple to highly complex assets, varying depending on the nature of the business operations.

Furthermore, the strategies employed by business owners for managing physical assets are contingent on the type of assets in question. This includes decisions related to acquisition, use, maintenance and disposal.