Nobody likes to lose, especially when you lose something that’s vital to your business. As part of a new piece of research out today, we’ve uncovered an epidemic of loss in Australian businesses that’s costing them over $4.3 billion in assets every year. Here’s how to save yourself from your next big loss.
We spoke to decision-makers in 470 businesses across Australia for our research with Telsyte and found some startling revelations. Not only are billions of dollars in vital assets being lost each year by Aussie businesses, our research out today reveals that they’re often never found again. That has a huge impact on business, not only costing organisations financially, but also impacting ongoing digital transformation and sensitive customer relationships.
Items lost can often be small, like smartcards and bike keys, but other items can be large and have a significant replacement value. We’re talking trailers and shipping containers, medical and lab equipment or expensive IT hardware. We found that 82% of businesses will try to recover their lost assets, but only 22% will ever actually find them. And that’s if the loss is reported in the first place: 48% of respondents say that embarrassment stops them from reporting lost assets to their organisations!
And even when these losses are reported, its last location is recorded through a manual log meaning that administrative staff will need to wander a business premise to find it again.
Can you imagine having to replace not only a work vehicle but all the equipment inside of it that made your business possible? For some small businesses, that loss can be crippling.
Loss of assets has widespread impact across the business. More than half of Australian organisations (52%) say losing assets ultimately costs above and beyond the financial impact of their replacement. And 47% of organisations say losing company assets negatively affects their relationships with clients.
At a time when two-thirds of Australian businesses are transforming digitally and having to do more with less, we want to help in effectively reducing costs.
As Australia’s biggest private rail freight operator, supported by a large road fleet, SCT Logistics faced an average annual asset loss rate of three per cent, which presented a $4 million cost to the business each year. SCT Logistics is now rolling out Telstra’s Track and Monitor solution to 1,500 trailers, containers and rail wagons in its fleet.
Our Track and Monitor solution empowers businesses to track assets of different sizes and values with enterprise-grade Internet of Things devices and functionality, including Cat-M1/LTE-M, GPS and Bluetooth. Those solutions are supported by our leading Australian mobile network.
Not only is this allowing them to understand more about their assets and increase utilisation, they expect the technology investment to be offset by cost savings in as little as three years. And the research suggests their annual rate of loss is only half of the national average, so there are huge gains to be made by Australian organisations using asset tracking technology.
If you’re curious about finding out how your physical losses are hitting the bottom line, check out our Asset Tracking Calculator.