7 hidden costs revealed: How IT inventory tracking saves you money

Table of Contents

• 7 hidden costs of poor IT inventory tracking
  • Unexpected downtime
  • Compliance risks
  • Delayed incident response
  • Security vulnerabilities
  • Inefficient resource allocation
  • Decreased asset lifespan
  • Increased storage and maintenance costs
• Efficient IT inventory tracking: 7 techniques to save money 
  • 1. Classify your inventory for tracking
  • 2. Use automated IT inventory tracking systems
  • 3. Apply asset tagging
  • 4. Centralize inventory management
  • 5. Perform regular audits
  • 6. Adopt lifecycle management
  • 7. Use data analytics
• Virima: Enhancing IT inventory tracking with seamless ITAM benefits
  • Near real-time visibility to make use of existing inventory
  • Reduced risk of penalties with ITAM
  • Reduced labor costs with service mapping
  • Comprehensive reporting and analytics for better investment decisions
  • Enhanced IT security and cost control to mitigate financial impacts
  • Minimized downtime costs with change management integration
• Transform IT inventory tracking: Uncover hidden costs with Virima

IT inventory tracking is more than just knowing what assets you own. It helps uncover hidden costs that can quietly drain your budget. Many businesses don’t realize the financial impact of poor inventory tracking until it’s too late. These hidden expenses can add up fast. 

In this blog, we’ll reveal 7 surprising costs that come from ineffective inventory tracking. You’ll also see how a strong IT inventory tracking software can save you money.  

7 hidden costs of poor IT inventory tracking

Poor IT inventory tracking can quietly harm your IT operations, leading to hidden costs that often go unnoticed. Here are seven key costs of poor IT inventory tracking.

Unexpected downtime

Predicting or preventing failures becomes difficult without keeping track of IT inventory. This lack of visibility can lead to unexpected outages, disrupt business operations, and result in lost productivity and revenue.

Compliance risks

Failing to manage software licenses and hardware assets properly can lead to non-compliance with industry regulations. Consequently,  this puts your business at risk of fines and legal penalties while also damaging your reputation—both of which can be costly.

Delayed incident response

When IT issues arise, a fast response is critical. However, poor IT inventory tracking makes it challenging to quickly identify and locate faulty equipment. Consequently, this delay extends downtime and affects your ability to deliver reliable IT services.

Security vulnerabilities

Untracked devices as well as software, can create blind spots in your IT security strategy. These unmonitored components may miss necessary updates, making them easy targets for cyberattacks. This also increases the risk of data breaches, leading to expensive recovery efforts.

Inefficient resource allocation

Poor IT inventory tracking often results in improper distribution of IT resources, such as underutilized servers or mismanaged network bandwidth. This inefficiency can hinder your IT service delivery, causing higher operational costs and reduced network performance.

Decreased asset lifespan

When assets aren’t properly tracked, scheduled updates may be missed, leading to accelerated wear and tear. Additionally, minor problems can escalate if left unattended, and improper usage or delayed repairs can further shorten the asset’s lifespan. Without accurate tracking, you may also lose out on warranty and support benefits, compounding the potential for premature asset failure.

Increased storage and maintenance costs

When your IT inventory isn’t accurately tracked, you might end up purchasing more hardware or software than necessary. Further, over-provisioning ties up capital in unused IT assets and increases storage and maintenance costs, which ultimately leads to financial waste.

Efficient IT inventory tracking: 7 techniques to save money

Here are some money-saving IT inventory tracking techniques:

1. Classify your inventory for tracking

Divide your IT inventory tracking activity into three groups:

• A: high value, low volume (frequent reordering)
• B: medium value, medium volume (monthly or quarterly reordering)
• C: low value, high volume (annual reordering)

For example, high-end servers might be in category A because they are expensive, and you keep only a few on hand. Network cables could fall into category C since they have low value, and you can keep many in stock. This approach, called ABC Analysis, helps you focus on items that generate the most value.

Managing IT inventory efficiently can cut costs and boost productivity. Here are six straightforward techniques to help you save money:

2. Use automated IT inventory tracking systems

Automate your inventory with near real-time tracking systems. This minimizes manual errors and ensures accurate data. As a result, you avoid over-purchasing and underutilization.

3. Apply asset tagging

Tag your IT assets with barcodes or RFID (Radio Frequency Identification). This makes keeping track of IT inventory easier and management simpler. Moreover, it aids in quick audits and helps prevent loss or theft.

4. Centralize inventory management

Keep all inventory data in a single system. This centralization offers a clear view of your assets. Consequently, IT inventory tracking software improves the management and optimization of your resources.

5. Perform regular audits

Regularly audit your inventory to check record accuracy. Moreover, routine checks help spot discrepancies. This way, you avoid financial losses from unnoticed issues.

6. Adopt lifecycle management

Track your IT assets from acquisition to disposal through a proper asset lifecycle management system. Knowing each asset’s age and condition helps with informed decisions. This strategy also prevents unnecessary spending on replacements and upgrades.

7. Use data analytics

Analyze inventory trends and usage with data analytics. This insight helps forecast needs and optimize inventory levels. As a result, you spot cost-saving opportunities.

Overall, by following these techniques, you can enhance IT inventory tracking and reduce costs. For a more advanced solution to your inventory management needs, consider exploring Virima’s robust tools designed to streamline and optimize IT asset tracking.

Virima: Enhancing IT inventory tracking with seamless ITAM benefits

Maintaining accurate IT inventory tracking is crucial for operational efficiency as well as strategic decision-making. Virima stands out as a leading solution for enhancing and keeping track of IT inventory by integrating advanced features and intuitive interfaces. Here’s how Virima’s service mapping and IT Asset Management (ITAM) can help save money significantly in an inventory lifecycle:

Near real-time visibility to make use of existing inventory

Gain near real-time insights into the status as well as the location of all your assets with Virima ITAM’s IT asset tracking feature. This helps in better resource allocation, avoiding unnecessary purchases, and utilizing existing inventory efficiently.

Reduced risk of penalties with ITAM

Virima ITAM streamlines the management of both IT and non-IT assets. You can also manage inventory lifecycles, track maintenance schedules, and ensure compliance mapping from a single, centralized platform. This eventually reduces the risk of penalties and costs associated with non-compliance.

Reduced labor costs with service mapping

Virima service mapping automatically discovers IT assets and maps their dependencies within your network. Further, this reduces labor costs associated with manual data entry. It also minimizes errors, ensuring more accurate IT inventory tracking.

Comprehensive reporting and analytics for better investment decisions

Virima ITAM provides comprehensive reports and analytics on asset utilization, performance, and costs. Further, this data can be leveraged to optimize asset lifecycle management and maximize return on investment. 

Enhanced IT security and cost control to mitigate financial impacts

Virima ITAM’s role-based access control ensures that only authorized personnel can access sensitive IT inventory tracking information. Moreover, this reduces the risk of data breaches and the associated financial impact. IT inventory tracking software usage also helps in identifying and mitigating potential cyber risk, further protecting financial resources.

Minimized downtime costs with change management integration

Integrating ITAM with IT change management software ensures that asset inventory changes are eventually informed and controlled. This minimizes disruptions to IT services, reducing potential IT downtime costs.

Transform IT inventory tracking: Uncover hidden costs with Virima

The unseen expenses of inadequate IT asset tracking can significantly harm a company’s financial health and operational efficiency. However, these obstacles can be transformed into opportunities with the appropriate solution.

Virima is an advanced inventory management solution crafted to solve these issues. By offering near real-time visibility and asset management practices, Virima helps businesses avoid these hidden costs.

Whether you’re dealing with downtime costs, or other IT inventory tracking software-related problems, Virima provides a comprehensive solution crafted to your needs. Discover Virima today to gain control over your IT inventory tracking software and unlock new opportunities for growth and success.