Any business with a significant inventory has provisions and measures in place to monitor and track its assets. Assets can be physical assets such as inventory, cash, equipment, vehicles, investments and properties. Intangible assets are brand value, intellectual property and goodwill. Asset tracking, in its simplest definition, is the tracking of a company’s physical assets through barcode scanning or by GPS and RFID tags to confirm their location. It is an integral part of enterprise asset management (EAM). While the method is limited to physical assets, the impact of effective asset tracking can be felt on the intangible assets of a company too. For the sake of this article, we will be mainly talking about physical assets and how asset tracking solutions help monitor them.

Compare EAM Software Leaders

According to a report by Global Industry Analysts, Inc., the market for asset tracking and inventory management solutions is estimated to be worth $34.82 billion by 2026.

However, a lot of companies use the term “inventory” in exchange for assets. Asset tracking differs from inventory tracking in that the former is involved in monitoring the value of assets and keeping a record of all details such as location, maintenance histories and ownership of each item. Inventory tracking, on the other hand, only keeps an accurate account of the items held in stock for sale.

Now that we have a brief idea about what asset tracking is, we’ll deep dive into some common technologies and benefits of asset tracking.

Technologies Used

There are three main technologies used in asset tracking:

• Barcodes
• RFID
• GPS

Barcodes

It’s difficult to go anywhere these days without seeing a barcode. The fact that this piece of passive technology, first utilized commercially in the 1970s, is still so widely employed today demonstrates its adaptability.

They’re also a must-have in the field of asset monitoring for returnables. While barcodes are an old concept, advancements in portable scanning technology have only increased their popularity. Over 90% of all people involved in asset-intensive businesses prefer barcodes for asset tracking over other technologies.

Some advantages of barcodes include:

Low Cost

Barcodes provide by far the best value in terms of capabilities versus cost due to their low recurring price. They normally cost pennies apiece, making them inexpensive to use in large quantities. This also makes them a good option for tracking low-value objects that aren’t cost-effective to track using other ways.

Versatility

Unlike other tracking techniques, barcodes may be scanned with a variety of scanners, allowing you to rely less on a single technology. Rugged, portable scanners or smartphone cameras can read them just as well. In some ways, they are the most “future-proof” of the technologies.

Speed

Barcodes are quick and easy to use. Peel the adhesive backing off, stick and repeat. They can be attached to literally any type of asset in any environment.

Accuracy

Barcodes capture information digitally, making the data more accurate than manual records.

RFID

Radio Frequency Identification (RFID) asset tracking is a way of sending and receiving signals from asset tracking tags using certain frequencies. RFID transmits information about an item to a receiver using radio frequency chips or tags. While they are far more advanced than barcodes and have some benefits, they are not always the most efficient alternative.

Some advantages of RFID include:

Remote Scanning

RFID allows you to acquire data while keeping a safe distance from the object. This is useful in instances where the item isn’t easily accessible. The operator also saves time by not having to reorient the scanner for each item.

Scanning Multiple Items

RFID allows you to scan numerous products at once, something barcodes do not allow. It can help to speed up the data collection process.

Greater Flexibility

Using RFID along with barcodes gives you greater insight into choosing which tracking method is most suitable for your business.

Compare EAM Software Leaders

GPS

GPS-based asset tracking has mostly been used to track items that have left the plant and have been transported to customer sites on trucks, including those sent to far-off countries. A GPS tag can be easily tracked to and from a far-off place with only a stable internet connection.

Some advantages of GPS include:

Near Real-Time Location

The location of your item can be traced practically in real time using active GPS tags. You can know where your asset is at all times. It is possible to detect where a user scanned an asset. Additionally, you can track whether an item was delivered or picked up.

Cost-Effective and Simple

There is no additional cost to using this technology. It can be used with any mobile device with GPS tracking capabilities. A GPS tag or tracker does not require any additional effort from the user to maintain it.

Motion Alerts and Passive Technology

This form of tracking can be set up to notify you if the position of your asset has changed.

Active GPS tracking does not require manual scanning. The tracker sends all of the information to you directly.

Automating Asset Tracking

While barcodes, GPS and RFID trackers offer a certain level of automation, there is still some form of manual work involved with them. Asset tracking systems, on the other hand, offer a great alternative to these semi-automated asset tracking options by combining the benefits of all the aforementioned technologies.

First, the asset information is recorded into the asset monitoring system’s online asset register. The item is usually assigned a barcode or scanning system to link it to the system data. GPS tracking devices are used to track the asset’s location.

Second, the asset is connected to the tracking software’s online reservation system for the organization. Employees can request an asset transfer online. Managers who want to assess the utilization and performance of each asset on the register will find this tool very useful.

Deploying an asset tracking system reaps multiple benefits for your organization. Take a look at what they are.

Compare EAM Software Leaders

Primary Benefits

Asset Recovery and GPS Positioning

When your company deals with hundreds or thousands of assets, tracing one that gets separated from a larger batch might be difficult. You could waste a lot of time and money finding the asset. Worse, your company may face production delays, additional prices, and a flurry of unhappy consumers. You can avoid all the aforementioned troubles by using asset tracking software. An asset tracking software helps you avoid these problems by tracing asset locations using GPS technology.

An enterprise asset management system will provide you with a clear view of each assets’ location and movements. Accurate asset tracking facilitates efficient data management.

You can discover duplicate records for the same asset and remove them from the system. You can provide assets with a unique identification number to prevent your data from being compromised.

Get our EAM Software Requirements Template

Increase Productivity and Reduce Labor Waste

An asset tracking tool can keep track of all the items in your inventory and throughout your company. As a result, you can calculate asset life cycles. If your assets are outfitted with RFID tags, they can be scanned automatically as they progress through the process, eliminating the need to manually scan them.

An automated asset tracker will save employees time and effort, allowing them to focus on important business aspects.

Streamline Maintenance Schedules

Many businesses fall behind in maintenance management because they track their schedules using manual methods. Asset tracking software is a savior if any asset you operate requires ongoing or periodic maintenance.

Asset management software can notify the staff about scheduled maintenance activities to avoid delays and ensure optimum performance of assets.

Increase Asset Lifespans

With asset tracking software, you have visibility into the condition and performance of every asset and whether it needs to be repaired or replaced. The asset tracking system will offer insights into scheduling timely maintenance activities and cost estimates for them. These insights will enable informed decisions to save expenses and extend asset life spans.

Compare EAM Software Leaders

Conclusion

A continuous and updated status of your assets can open up a whole new world of useful data for your company. Asset tracking makes it simple and quick to get this information, resulting in considerably faster responses to asset-related challenges and opportunities.

How does asset tracking bring value to your business? Let us know in the comments!