Knowing where your assets are, what condition they are in, and how they are being used at all times is essential for successful businesses. It doesn’t matter if your company is a multinational corporation with warehouses and sites around the world, or a smaller educational organisation with a specialist collection of lab equipment; without an effective asset tracking system it’s impossible to maximise the value from your assets.
So, what exactly is asset tracking, and how can you implement it effectively? Asset tracking refers to the process of monitoring the location, condition, and usage of your assets in order to better manage them. This includes fixed assets of all types, including vehicles, equipment, machinery, and more. This guide will take a closer look at the benefits of asset tracking, what asset tracking solution to use, how to implement it, and what the future of asset tracking looks like.
Benefits of asset tracking
Boost productivity
With real-time updates on assets’ location and condition, you can boost productivity throughout your operations. Effective asset tracking means no more time wasted searching for lost assets, confusion over who has recently checked assets in or out, or operational delays due to assets being unusable during unforeseen maintenance and repairs. With greater visibility over the asset register, it’s easier to ensure that assets are in the right place, assigned to the right people, and in optimal condition at the right time, streamlining operations and boosting productivity in the process.
Make more informed decisions
With real-time data about asset usage including where, by whom, and how assets are being used, business leaders can make more informed decisions, both regarding assets themselves (eg. maintenance, repairs, and replacements) and wider business and financial decisions. This visibility can lead to better strategies and cost savings over time.
Improve inventory management
Immediate visibility over assets’ location and condition streamlines inventory checks, streamlining auditing and reducing the risk of asset theft or loss. With better inventory management, organisations can boost efficiency and maximise value from inventory.
Reduce maintenance costs
Keeping up-to-date on asset usage and performance enables scheduled preventative maintenance to keep assets in top condition, reducing downtime and minimising the amount of money spent on unexpected and extensive repairs. With planned preventive maintenance, your organisation can optimise assets’ life cycles and reduce the risk of sudden and costly problems. Moreover, this extends assets’ lifespans, keeping them operational for longer and reducing the need for spending on replacing assets.
Improve compliance
With an accurate and auditable record of asset usage, asset tracking can help businesses comply with all the regulations around asset use that are relevant to their industry.
Types of asset tracking solutions
Barcode tracking
A quick, easy, and low-cost solution for asset tracking, barcode tracking refers to putting a barcode label on each individual asset. Then, these labels can be scanned using a scanner or barcode scanning-enabled mobile device. By doing this, you can quickly identify the asset, retrieve all relevant information about it from the database, and update its location and condition in the central system.
Barcode or QR code tracking is a popular option for asset tracking because of its ease-of-implementation and relatively low costs. It also doesn’t require much specialist equipment. However, it does require line-of-sight access to the barcode label for scanning and the process of scanning can be time consuming.
RFID tracking
RFID tracking is another asset tracking solution similar to barcodes. However, instead of needing to physically scan the barcodes, RFID tracking uses radio waves to automatically detect and identify assets at a location.
While this can be more expensive and complicated to implement, it can be advantageous because there’s no need to manually scan barcodes to track the assets. However, the accuracy of RFID tags can sometimes be impacted by other interfering radio signals, so it’s important to consider this when choosing whether to implement RFID tracking.
GPS tracking
Another asset tracking solution that organisations may consider is GPS tracking. Suitable for tracking assets such as vehicles and other heavy equipment, this method uses GPS technology to track assets’ location in real time.
However, because of the expense and technology involved, this asset tracking solution is only applicable in some cases. For businesses with fleets of vehicles, for example, this may be beneficial, but for an organisation with mostly smaller lab or healthcare equipment in the asset register this strategy may be less suitable.
NFC tracking
NFC or near field communication tracking uses tags like barcode tracking and NFC enabled devices such as mobile phones to track assets’ locations and usage. It’s relatively cheap and easy to implement.
However, like barcode asset tracking, it requires a line of sight for scanning the tags, needing the scanner to be very close to the tag for accurate tracking. NFC technology is not as popular and therefore compatibility can be an issue for businesses implementing this solution. Moreover, NFC tags tend to have less memory, meaning that the amount of information about assets that can be stored is limited.
Bluetooth tracking
Finally, Bluetooth tracking uses Bluetooth technology to track assets inside a certain range. For example, in a particular warehouse or office building. Cheaper than RFID or GPS tracking, this asset tracking solution is also easy to implement and works very well indoors as long as the assets are compatible with Bluetooth technology.
However, this method is less effective for tracking assets over a wider area – Bluetooth can only work up to 100 metres or so. This means that it’s no use for companies with multiple warehouses and sites or assets that are spread across a large area. Plus, the accuracy of this tracking system can be impacted by interference from other Bluetooth devices in the area or Wi-Fi signals.
Choosing the right asset tracking solution for your business
With so many different ways of tracking assets, choosing the right solution for your organisation can be a real challenge. One of the first things to keep in mind is the type of assets that you need to track; the makeup of your asset register will define what exactly you need from an asset tracking solution.
For example, if you are looking to track vehicles that move in a large geographical area, Bluetooth tracking is unlikely to be suitable. Instead, RFID or GPS tracking may be a better solution for keeping real-time tabs on these vehicles’ movements.
On the other hand, for smaller and medium-sized businesses tracking assets such as equipment being used on-site, barcode or RFID tracking may be the most suitable option.
These asset tracking methods are highly accurate and cost effective in a more limited range. Plus, they can store a lot of information which makes them ideal for tracking complex assets and asset relationships.
Note: if your assets are used in the field or are likely to become damaged or messy, their barcodes may become damaged or hard to scan. Therefore, it’s important to consider where and how barcodes will be attached to ensure they can still be read by barcode scanners, or think about using RFID instead which does not require a line of sight for scanning.
The size, growth, and budget of your business is also a key consideration. Barcodes are one of the most cost-effective asset tracking solutions and are popular with small and medium-sized businesses because they are simple, effective, and easily scalable with the growth of the business. Although it is more costly to implement, RFID is also relatively easy to scale up with the right infrastructure and can generate significant time-savings in the long term.
Implementing and maintaining your asset tracking solution
While the benefits of a comprehensive asset tracking solution are numerous, the complexity and time involved in implementation of the system can be off-putting to some business leaders. However, an effective implementation with training for the right people can lay the foundation for successful asset management for years to come.
Prior to implementation, it’s important to identify the assets that will be tracked and evaluate which asset tracking solution is most appropriate for these items. Then, investing in appropriate software and equipment such as asset tracking software and barcode scanners or RFID readers ensures that implementation can go smoothly. High quality asset management and tracking software can even integrate with your existing IT, ERP, or finance solutions for seamless deployment.
Training employees on how to scan barcodes, use RFID readers, and use the asset tracking system is essential to ensure it works effectively. They should also be trained in the relevant maintenance procedures, such as checking the scanners or barcodes for wear and tear and reporting damage or maintenance needs through the correct channels. However, simply training the employees in the processes isn’t enough – it’s essential to also prove to them the value of the system and get their buy-in to ensure that they carry out asset tracking tasks effectively.
It’s also useful to choose a vendor for your asset tracking solution and software that offers advanced customer support and upgrades to keep your system working in top condition. With an expert vendor at hand to help troubleshoot any issues with the new system, your organisation can proceed with confidence for a successful implementation.
The future of asset tracking
Technological advancements are likely to transform the world of asset tracking in the future, with Internet of Things (IoT) sensors and Artificial Intelligence (AI) paving the way for even more powerful asset tracking capabilities. For example, enterprises of the future may use IoT sensors for real-time monitoring of assets which could include capabilities for analysing not just location and movement but also temperature, humidity, and more. For some industries, this may be revolutionary for optimising asset lifecycles and maximising value from inventory.
Furthermore, AI technologies today are starting to assist asset tracking by analysing data to identify patterns and make recommendations for better asset management. This might mean identifying asset loss risk or maintenance issues long before they occur, allowing action to be taken to prevent them.
Conclusion
With the right asset tracking solution, organisations can transform the way they use and monitor assets in order to save money, boost productivity, and increase compliance. The type of asset tracking you can most benefit from depends on an organisation’s unique asset types and requirements, with different options like barcodes, RFID tags, and GPS exhibiting a range of advantages and disadvantages for different applications.
Choosing to adopt and implement a new asset tracking solution is no small task, which is why FMIS offers attentive customer support, powerful software integrations, and efficient implementations to help you get the best out of your assets. Check out their website to find your ideal asset tracking solution today.