Effectively managing and keeping track of assets can be challenging. Enterprise asset management often involves tagging assets to combat such challenges. But what is asset tagging, how can it help you and how should you implement it? We’ll answer those questions and more.
What This Article Covers
What Is Asset Tagging?
Asset tagging is the process of attaching unique identifiers, such as barcodes, QR codes or RFID tags, to physical assets to streamline their tracking and management. Asset tagging has become an essential practice for organizations across various industries, as it brings improved visibility, accountability and control over valuable assets.
By implementing asset tagging, you can bid farewell to manual asset tracking methods that often lead to errors, inefficiencies and loss of valuable time. Instead, you can use automated systems and EAM software to effortlessly track, locate and manage assets.
What Are Asset Tags?
Asset tags are unique identifiers affixed to physical assets. These tags serve as digital fingerprints for assets, so you can easily track and manage them throughout their life cycle. The purpose of asset tags is to provide a quick and accurate way to identify, locate and monitor assets, enabling efficient asset management processes.
There are various tag types for assets, depending on your needs and the assets you manage. Common types of asset tags include:
- Barcode Labels: Barcode labels use vertical lines of varying thickness to represent asset information. By assigning a unique barcode to each asset, you can easily scan them with a dedicated scanner or smartphone and scanning app.
- QR Codes: QR codes offer the advantage of being able to store additional data such as asset details, maintenance history or documentation. They’re particularly useful when you need to associate more information with each asset than a barcode can handle.
- RFID Tags: You can read RFID tags from a distance without a clear line of sight. They’re commonly used in large-scale, asset-intensive facilities requiring real-time tracking and monitoring.
- GPS Tracker: You can attach GPS tags or devices to assets for real-time location tracking. This method is commonly used for tracking vehicles, high-value equipment or assets spread across multiple locations.
Primary Benefits
Asset tagging offers certain benefits like improved asset tracking and management and enhanced visibility into inventory. Let’s take a look at them.
Improve Asset Tracking & Inventory Management
Asset tagging enables you to accurately track and monitor the movement and location of assets. By scanning asset tags, employees can quickly update asset records, ensuring real-time visibility into asset whereabouts. This improves inventory management by reducing instances of lost or misplaced assets and enables efficient asset usage.
Enhance Asset Visibility & Accountability
Asset tags provide a clear and auditable trail of activity, facilitating better accountability within your organization. By scanning asset tags during check-in, check-out and maintenance processes, you can track asset use, identify responsible individuals and promote better asset stewardship. This leads to increased accountability and reduced asset misuse or unauthorized transfers.
Streamline Maintenance & Asset Life Cycle Management
Asset tags play a crucial role in streamlining maintenance activities and optimizing asset life cycle management. By attaching asset tags, you can easily associate maintenance schedules, repair histories and warranty information with specific assets.
Additionally, asset tags provide valuable data for assessing asset performance, identifying failure patterns, and making informed decisions regarding asset replacements or upgrades.
Implementation
Asset tagging is a dynamic process that evolves alongside your organization’s growth and changing landscape. Follow these steps for successful asset tagging implementation.
1. Plan
Before diving into asset tagging, it’s essential to plan the process effectively. Start by identifying the assets that require tagging and prioritize them based on their criticality or value.
Determine the type of asset tags that best suit your needs, considering factors such as durability, readability and compatibility with your asset tracking systems. Establishing a consistent and standardized tagging system will ensure smooth asset management and tracking.
2. Apply Tags
Once you have your asset tagging plan in place, it’s time to apply the tags to your assets. Make sure you affix the tags securely to the assets in easily accessible locations. Consider factors like asset size, surface material and environmental conditions when selecting the appropriate attachment method.
As you apply the tags, record important information associated with each asset, such as asset name, description and serial number. This documentation will be valuable for future reference.
3. Integrate with CMMS or EAM Software
To maximize the benefits of asset tagging, integrate the tagged asset data with a robust CMMS solution or asset management platform. This integration allows for seamless tracking, data recording and maintenance management.
Configure the software to capture and update asset information in real time as you scan the tags. This integration provides a centralized platform for asset data, streamlines workflows and facilitates efficient asset management.
Remember to communicate the importance of asset tagging to your team, provide necessary training, and continuously monitor and update asset records to ensure accuracy and completeness.
Best Practices
Follow these best practices to optimize the effectiveness of your asset tagging initiatives and ensure seamless asset management.
Use Unique & Standardized Numbering
Establish a system for assigning unique asset tag numbers that are easily identifiable and standardized across your organization. This ensures consistency and avoids confusion when tracking and managing assets. Consider using alphanumeric codes or a combination of letters and numbers that align with your asset categorization.
Update & Maintain Records Regularly
Keep your asset tag records updated by conducting regular audits. Periodically verify the accuracy of asset information, including asset descriptions, locations and data. This helps you maintain the integrity of your asset database and ensures you have reliable and useful records for tracking and reporting purposes.
Conduct Periodic Audits & Inspections
Schedule routine audits and inspections to validate tagged assets’ presence, condition and compliance with established standards. Use handheld scanners or mobile apps to scan asset tags and cross-check the recorded information against the physical assets. Identify any discrepancies or issues and rectify them as soon as possible.
Train Employees on Procedures & Importance
Educate your employees about the purpose and significance of asset tagging. Provide comprehensive training on how to apply and scan asset tags, update asset records, and use the asset management system accurately. Emphasize the role employees will play in maintaining accurate asset data and encourage their active participation in the asset tagging process.
FAQs
What is an example of asset tagging?
One example of asset tagging is using an RFID tag on an HVAC unit. If it encounters a failure or exhibits signs of potential issues, employees can pull a detailed overview of the unit’s manufacturing information and maintenance history before visiting the site.
With this information, your maintenance team can determine potential equipment and parts they may need before visiting and examining the unit. This can save time on traveling and repairs, especially if you keep an inventory of spare parts.
Although this is just one example of asset tagging, specifically with an RFID tag, it demonstrates some of the potential benefits of using asset tags in general.
What’s the best way to tag fixed assets?
The best way to tag fixed assets depends on the asset types you have. As we’ve mentioned previously, there are various tag types you can use. Depending on the asset, one may serve you better than the other.
For example, if you’re dealing with assets that move around a lot or are subject to changing weather conditions and strenuous use, RFID tags might serve you better than other options. Especially if you still need to store detailed asset information.
You can read RFID tags from a distance, so you don’t have to physically be there to scan something like you would with a QR code or barcode.
They’re also more durable because they use chips, typically encased for protection, rather than stickers — like QR codes and barcodes — that can easily scratch off or become damaged due to weather.
If you just need to track an asset’s location without the additional details you can store using RFID tags, you may want to opt for a GPS tracker.
On the other hand, for fixed assets in a single, protected location, QR codes or barcodes might be your best bet. You can easily customize, change and replace them. You can use devices you already have, such as smartphones or tablets, to read them as well.
The level of detail you need access to will determine whether you should opt for QR codes or barcodes. If you just need the basics, a barcode will do. If you need further customization and data storage, you’ll probably want to use QR codes.
So it really depends on what type of assets you typically use, how much information you want to store and whether or not they’re stationary. You can always use a combination for your different asset types!
How do I tag IT assets like software and hardware?
Tagging IT assets like software and hardware requires creating an inventory of software assets and employing a combination of physical and digital tags. Begin by documenting software details, such as name, version and license information. Use barcode or QR code labels to tag hardware like CDs or USB drives.
Assign digital tags within an IT asset management system, linking them to relevant information like license terms and renewal dates. Maintain accurate documentation and regularly update the asset management system.
Manage IT asset tags alongside your physical fixed assets with software like InvGate Assets to centralize tagging information. Source
Conduct audits to reconcile physical and digital tags and ensure compliance. By using both physical and digital tags and implementing an asset management system, you can effectively track and manage software assets, optimize license usage, and ensure efficient software asset management.
Next Steps
Asset tagging is a game-changer when it comes to efficient asset management. With accurate and up-to-date asset information at your fingertips, you can make data-driven decisions, optimize asset use and reduce downtime. It’s an invaluable tool for organizations across industries, from manufacturing to health care to retail and beyond.
If you’re looking to implement asset tagging in your organization, check out our free asset management software comparison report. It helps you create side-by-side comparisons of popular products to find the one best suited to your needs.
How has asset tagging helped you in your asset management processes? Let us know in the comments below.