If you’re considering implementing a strategic asset management framework, or just finding out more about it, we’ve pulled together everything you need to know - and importantly, why your business needs one.
In this blog, we explain what strategic asset management is, how utilise our strategic asset management framework, and outline the key benefits it can deliver for your team and the wider organisation.
Jump to:
● What is asset management and solutions?
● 5 reasons why you need strategic asset management
● How to create a strategic asset management plan?
What is asset management and solutions?
Asset management is a process that helps organisations manage their key assets like buildings, equipment, and infrastructure in a way that maximises their value and aligns with business goals.
It involves planning, acquiring, operating, maintaining, and even disposing of these assets efficiently.
The aim is to get the best performance from your assets while keeping risks and costs low. By combining strategic planning with good asset management, it can help organisations:
● Make smarter, more informed decisions
● Boost efficiency
● Improve sustainability
● Accelerate financial health and growth
5 reasons why you need strategic asset management
There are many reasons why our framework can help your organisation and how it can significantly enhance overall business performance, so we’ve broken them down into our top five key benefits:
Optimises asset performance
Ensures that all assets are used efficiently and effectively, maximising their productivity and lifespan.
Helps identify and eliminate unnecessary expenses related to asset acquisition, maintenance, and operation, leading to significant cost savings.
Provides a structured approach to identifying, assessing, and mitigating risks associated with asset ownership and operation.
Helps supply accurate and timely information about asset performance and condition, helping to make informed decision-making and strategic planning.
Ensures that asset management strategies are aligned with the broader objectives and goals of your organisation, supporting overall business success.
Ultimately, aligning asset management strategies with the broader objectives and goals of the organisation helps drive overall business success.
How to create a strategic asset management plan
The first steps in deciding to create an asset management plan involve evaluating your businesses current assets and identifying any issues in how they're managed. Start by taking inventory of all assets, including their condition, maintenance history, and financial implications.
It’s then key to assess how well these assets are currently used and whether they support the businesses key goals. Also, don't forget to consider factors like regulatory compliance, risk management needs, and potential cost savings from better asset management practices.
Understanding these aspects helps determine if you need to develop a tailored asset management plan that meets your businesses specific needs and goals.
Incorporating acquisition, planning and maintenance - a good asset management strategy should provide a high-level long-term plan that delivers on objectives for a company or organisation.
Strategic Asset Management (SAM) should provide a holistic view of your current assets and needs, and importantly, what you'll need in the years to come.
Typically, your Asset Management Strategy should include:
● Asset inventory
● Asset prioritisation
● Maintenance plans
● Lifecycle management
● Performance monitoring
● Budgeting
● Risk management
Our strategic asset management framework
Our Framework is broken down into five “lots” or categories, helping our members to engage specialists that can offer the best solutions tailored to their strategic asset management needs.
Plus, there’s an additional sixth lot which is multidisciplinary, offering our members a unified approach to managing all their assets through a single provider.
Lot 1 - Stock condition surveys
Stock condition surveys involve evaluating assets against current and anticipated standards. These surveys determine future investment requirements and projected costs over a 30-year period while assessing the entire property.
They provide a comprehensive overview of necessary investments before contractors begin design or work, including detailed photographic records, work schedules, and affordability analyses.
Lot 2 - Fire risk assessments
Conducting Type 1-4 fire risk assessments for communal property areas, identifying costs, and developing a risk management plan in compliance with the Regulatory Reform Order. This Lot provides comprehensive consultancy advice and support through nationally recognised and accredited fire safety experts.
Lot 3 - Energy Performance Certificates (EPC)
Energy certification in accordance with RDSAP compliant with EU Energy Performance
Lot 4 - Asset strategy
Developing a comprehensive strategy that includes guidance, workshops, training sessions, and presentations. This strategy will evaluate asset performance to provide a clearer understanding of the financial performance of the stock, while also taking into account the external housing market.
Lot 5 - Energy efficiency
Providing comprehensive support, advice, and data analysis to help housing providers gain a deeper understanding of the scope, scale, and practical feasibility of their energy-related stock investment requirements.
Lot 6 - Multi discipline
A thorough checklist to ensure all assessments are completed and reviewed to the highest standard before finalisation.
Key benefits of the Procurement Hub framework
The main benefits of the frameworks are:
1) Large range of services: We work with the industry’s best specialists across a huge variety of areas, including building safety, decarbonisation and asset strategy
2) Market leading knowledge: Our Asset Managers have years of experience helping companies create investment strategies that work for their business and help drive meaningful outcomes that align with the wider business objectives
3) Low management fee: We only charge 2% to our framework suppliers, meaning there’s more money saved to invest into your business
4) Social value: We’re proud to drive social value for our clients, but importantly we’re passionate about delivering it for ourselves too! Take a look at our charity partners
5) Compliance: We make sure to stay up to date with all of the latest compliance legislations.
6) It’s free to join! There’s no ongoing membership or subscription fees.
Our framework is designed for Asset Managers to help engage with and utilise pre-approved providers to ensure their assets are safe, useable, and future-ready
Why choose Procurement Hub’s Strategic Asset Management Services (SAMS) framework to meet your needs?
Procurement Hub is part of Places for People, the largest social enterprise in the UK, and we own and manage over 240,000 properties – so we understand the importance of excellent asset management!
At Procurement Hub, we select only the best top-tier suppliers who are known for their excellent service and extensive public sector experience. Unlike other providers, we charge no membership or subscription fees (it’s free to join!), offering you free access to our pool of experts.
We believe wholeheartedly in being open and honest with our customers. We charge the suppliers on our frameworks a small fee ranging from 0.15% to 2% of the contract value. We publish all of these fees clearly and prominently on our website. All surplus from those fees is reinvested back into social housing, social value projects, or donated to charities, ensuring community benefit.
Our CIPS-qualified procurement team creates tailored solutions focused on user satisfaction and efficiency.
Find out more about the Framework.