Best practice for maintaining an asset library?

If you have the means and an internal server.
move all the FBX and Textures to said server in a shared folder.
create the master project on the server, move all the uassets / update the source files to be the shared file with the shared directory.

make sure the project is also shared.

Your coworkers will then be able to launch the project directly from the shared folder and take what they need- be it a texture, a whole material, or geometry.

This can also extend to audio, landscapes, etc.

The process of copying what they need is up to them / copy the single uasset or move the texture to the local project.

make sure the server files are locked with read only so that you can prevent any modifications to the textures/fbx/wav etc.