All companies have valuables that they simply cannot afford to lose. Laptops. Machines. Hospital equipment. Vehicles. If they can't be found, quietly money leaks out each day.
The issue with the question of how to track assets isn't that hard to understand. It is a matter of understanding at any given time what the business owns, where it is, who is using it and when it requires attention.
Real asset tracking using registers or Excel spreadsheets fails pretty quickly. Sheets expire, nobody can keep them up to date and assets get lost from one department to another or from one job site to another without anyone realizing it.
Modern asset tracking systems address this by integrating a digital record, physical tag (QR code, bar code or RFID chip) and software that is constantly updated, providing asset visibility without the need to track spreadsheets.
It is all here, including the definition of asset tracking, the step by step on how to track assets, the best asset tracking methods, and how to pick the best asset tracking software for a business.
What Is Asset Tracking?
Asset tracking involves tracking, monitoring and managing a business's physical assets, from the point they are acquired until they are retired or sold.
What Is an Asset?
Resources that a business uses to conduct its business and generate revenues are called assets and include:
- Computer and laptop, and IT equipment.
- Factory machines and equipment
- Office furniture and fixtures work out to be an expensive purchase.
- Medical devices and hospital equipment
- Fleet vehicles and assets
- Use of field equipment and tools.
Why Asset Tracking Matters
If no tracking is in place, equipment is lost and maintenance is overlooked. No one will ever know, "where is this machine right now", unless they walk around and check manually.
An asset tracking system eliminates this guesswork by assigning them a unique ID, creating a digital record, and providing real-time location and/or status data for each asset.
Asset Tracking vs Inventory Management
They are two different terms that sometimes get confused.
- What it tracks: Asset tracking includes fixed, reusable, long term assets. Inventory Management is about inventory that is used up or sold.
- For example: A laptop, an X-ray machine or a delivery van is an asset. Inventory is raw materials, spare parts or retail stock.
- The Goal is to achieve Asset tracking based on location, condition and lifecycle. Management of the inventory is based on quantity, reordering and stock levels.
- Lifespan: Assets are monitored over a number of years. Days/months of inventory turnover.
In other words, asset management is about keeping and maintaining assets over a long period of time. The term inventory refers to goods that come in and out.
Why Is Asset Tracking Important?
Companies without asset tracking have to deal with the consequences later, typically in an unobvious manner.
- Minimises the losses of misplaced valuables. An ID and recorded location means it would be very difficult for something to go missing.
- Improves asset utilisation. There are a lot of businesses that purchase new equipment and then another department with the same type of equipment that is not being used at all.
- Increases productivity. Staff save time looking for tools/equipment and use more time on work.
- Improves compliance. For industries such as healthcare and manufacturing, audit trails are an important requirement, and digital records effortlessly provide them, unlike the stress that paper records would create.
- Reduces maintenance costs. By monitoring usage and service history, it's possible to narrow down minor problems into big headaches.
- Improves business decisions. Leaders have a single dashboard to see exactly what resources are available, how valuable they are, how they are doing and where they are.
Types of Assets You Can Track
Nearly any business enterprise using anything that they have a long-term investment in can be traced. The most frequent classifications:
- Fixed Assets: These are typically the largest assets in a business's balance sheet, such as buildings, land, large equipment and furniture.
- IT Assets: Laptops, Desktops, Servers, Networking. IT Asset Tracking also plays a role in terms of security.
- Machinery and Equipment: Production line machines, generators and industrial equipment that require tight asset maintenance monitoring.
- Office Assets: Desks, chairs, printers and projectors, small-ticket items that quickly add up.
- Medical Equipment: Hospital beds, monitors, ventilators and diagnostic equipment; downtimes with direct consequences on patient care.
- Vehicles & Fleet Assets: Delivery vans, company cars and forklifts that are constantly on the move require GPS asset tracking.
How to Track Assets (Step-by-Step Process)
This is the hands-on arrangement. Now, here are the nine easy steps to tracking assets.
Step 1: Create an Asset Register
Create a master list (also known as a fixed asset register) that lists all assets owned by the business and some basic information such as the name, type, and date of purchase.
Step 2: Set a Unique Asset ID
Each asset should have a different code, similar to a fingerprint. No two assets can have the same ID, including the same office chair of the same model.
Step 3: Label Assets with QR Codes, Barcodes or RFID
Each asset gets a physical tag that instantly brings up its digital record when scanned:
- QR code asset tracking for indoor easy to reach assets
- High volume, low cost tagging with barcode asset tracking
- RFID asset tracking in the outdoor, industrial or high traffic environments.
Step 4: Record Asset Information
Record important information: Make/Model, Serial No., Purchase Order, Purchase Value, Warranty Periods and current location.
Step 5: Give Asset Owners
Each asset must be assigned to a specific custodian (person or department) who is responsible for it. This establishes responsibility and makes it much easier to trace a lost asset.
Step 6: Track Asset Location
That's where RFID reconciliation sweeps, GPS for vehicles, or check-in and check-out scanning for smaller items come in handy.
Step 7: Schedule Preventive Maintenance
Never await failure. Use usage hours or calendar dates to establish maintenance schedules and let the system remind you automatically.
Step 8: Perform Regular Asset Audits
An asset audit is a process that compares the information on the register to what is actually found on the ground at regular intervals; not when something feels off.
Step 9: Monitor the Asset Lifecycle
Monitor every asset from the initial buying to its active use, repair and retirement. This is known as asset lifecycle management and it assists businesses to plan replacement budgets in advance.
Best Asset Tracking Methods
The best option will depend on asset type, budget and the accuracy required in locating an asset.
Excel Spreadsheet
Free and familiar but exclusively manual – only for a small number of assets.
Barcode Asset Tracking
Low cost and reliable for indoor assets, using stickers which can be scanned by a handheld scanner or phone.
Track assets via QR Code.
Mobile-friendly, can be scannable with any smartphone camera, very popular for mobile asset tracking.
RFID Asset Tracking
Radio tags that read without having to be within line of sight of the reader, and typically read many tags at once, perfect for use in hospitals or warehouses.
GPS Asset Tracking
For vehicles and mobile equipment, providing real-time location information, rather than a last known location.
IoT-Based Asset Tracking
Useful when you are interested in condition or usage data in addition to location data, smart sensors report condition and usage.
Asset Tracking Software
A common platform that integrates the register, tags, maintenance schedule and reports.
Asset Tracking Methods Comparison
- Low cost, low accuracy, at scale use is challenging, indoor tracking only, no use outdoors. Best suited to very small businesses.
- The Barcode is the simple property that is easily used, low cost, medium accuracy and strong indoors-weak outdoors. Ideal for business and store use.
- QR Code: Low expense and medium-high precision, very convenient to use, strong indoor, medium outdoor. Ideal for offices, schools or hospitals.
- RFID: Medium cost, High accuracy, easy with a reader, very strong indoors, strong at short range outdoors. Ideal for campuses, hospitals and warehouses.
- GPS: High accuracy, medium high cost, easy to use, not required indoors, very strong outdoors. Ideal for fleets, vehicles and field equipment.
- Once installed, easy, very high accuracy, high cost, strong indoor and outdoor environment, IoT sensors. Ideal for critical or high value equipment.
- Asset Tracking Software: Expensive, extremely accurate, very user friendly, good indoors and outdoors. Ideal for any business that is looking towards growth.
How to Choose the Right Asset Tracking Solution
This decision is much easier when answered by a few questions.
- Business size. A small office can't possibly have the same level of requirements as a hospital chain with a thousand assets.
- Asset type. The furniture delivery model is different to fixed furniture.
- Budget. Compare the initial expense with the cost of lost or unmaintained assets.
- Scalability. Select a system that will still function if the business grows by 50%.
- Mobile accessibility. Field staff should make records from a cell phone — not a desktop.
- Automation. Look for auto-scheduled maintenance and auto-generated reports.
- Reporting. The objective of dashboards is to provide an answer to a question without manual effort.
- Integrations. The system should integrate with current procurement or helpdesk or finance systems.
Key Features of an Asset Tracking System
- Asset Register. Documentation on one central, searchable and digital asset document, with complete history at one place.QR Code and Barcode Reading. Quick search using a mobile phone or handheld device to scan a tag.
- RFID Integration. Bulk scanning for a quick and comprehensive scan of the assets, rather than individual scanning.
- GPS Tracking. Vehicle / field equipment live location visibility outside of a fixed site.
- Mobile App. Update, scan and report from a Phone even if there is low or no internet.
- Preventive Maintenance. Automatic scheduling and reminders to ensure maintenance before breakdown.
- Asset Audit Trail. A record of all changes made to a record, with a time-stamp, for internal and external audits.
- Reports and Dashboards. Quick responses for idle assets, maintenance and repair costs.
Common Asset Tracking Challenges
- Lost assets. Asset ownership and location information go missing and are forgotten between departments or job sites.
- Manual errors. Paper documentation can easily be inaccurate and can fall out of date.
- Duplicate records. The same asset is reported more than once under multiple names.Identical asset has multiple names in its reporting.
- Poor visibility. Without a true picture of the business' assets, leadership can't make sound decisions.
- Missing maintenance history. If there are no records, it is unclear whether the machine has been serviced recently or not, causing difficulties for planning.
Best Practices for Tracking Business Assets
- Tag everything right away following the purchase. Untagged assets are more likely to disappear.
- The register is up to date in real-time and not only every quarter.
- Designate a distinct owner for each asset even shared equipment.
- Standardize ID and naming formats across the entire business.
- Automatically schedule maintenance instead of having to rely on memory.
- Audits can be run on an established calendar like each quarter for high-value assets.
- Training field personnel properly. A system works only as good as those who are using it.
Common Asset Tracking Mistakes to Avoid
- Utilizing spreadsheets only. They cannot scale and are dependent on a person keeping track of updating them.
- Avoiding Audits. Assumptions replace facts and minor discrepancies can become huge losses as time passes.
- Bad labelling of assets. Faded, damaged or duplicated tags make scanning inconclusive.
- No update of data. A register reflecting the reality of last year's events is better than not having a register at all.
- Not paying attention to the maintenance. Small, cheap repairs are delayed until they turn into large, costly replacements.
Asset Tracking Use Cases Across Industries
- Manufacturing. Tracks machinery uptime as well as spare parts and preventive maintenance schedules so that you can prevent production interruptions.
- Healthcare. Tracks biomedical equipment like ventilators and diagnostic machines, along with dates for calibration, AMC contracts, and breakdown history since breakdowns directly impact patient care.
- Education. Tracks lab equipment computers, lab equipment, and infrastructure for campuses across colleges, schools, and universities.
- Facility Management. Tracks HVAC systems generators, elevators, and fire protection equipment at malls, airports, as well as corporate campus.
- Construction. Tracks tools and heavy machinery that are constantly moving between work sites.
- Corporate Offices. Tracks IT hardware and equipment shared across floors and departments particularly during office moves.
Asset Tracking Software vs Excel
- High-quality. Software stays high by scanning and automated. Excel relies entirely of manual entries.
- Automatization. Software sends auto-reminders and automatic schedules. Excel has no auto-reminders, it is fully manual.
- Report. Software gives instant reports and dashboards. Excel needs manual chart-building.
- Security. Software offers role-based access as well as audit trails. Excel can be edited easily and changes are difficult to track.
- Scalability. Software handles thousands of assets effortlessly. Excel cannot be managed at a large scale.
- Collaboration. Software supports multiple users and provides real-time updates. Excel creates versions conflicts and data overwritten.
Benefits of Using Asset Tracking Software
- Live visibility in real-time. Know the location and condition of any asset in real-time without having to walk around or calling.
- Better utilization of assets. Spot idle or unutilized equipment, and then redistribute it, instead of purchasing more.
- Reduction in loss. Fewer assets go missing when each item has an owner, tag, and a location that is recorded.
- Autonomous maintenance. Reminders go out by themselves according to use or a schedule.
- Improved productivity. Less time spent looking for equipment means more time to work.
- compliance. Complete, timestamped audit trails make reporting to the regulator simple instead of stress-inducing
Industry Perspectives on Asset Tracking
The businesses that struggle most with assets are not the ones with the least equipment. They are the ones with the least visibility into what they already own.
The hardest part of any asset tracking rollout is rarely the software. It is getting the people on the ground, the ones actually scanning tags and logging updates, to use it consistently.
Conclusion
Being able to Track Assets is no longer a luxury for businesses that want to expand without losing money due to inefficiency. If you are tracking a few laptops or a plethora of hospital equipment across different locations, the basic steps to track assets remain the same: register, tag monitor maintenance, and audit. The use of spreadsheets or paper registers can perform for a brief period but they fall apart quickly as operations expand.
An effective tracker of assets that is based on solid registers, precise tags, and live updates, provides businesses with the ability to cut loss, reduce expenses for maintenance and take more rapid decision-making.
OpsSuite integrates all of this into a single platform from asset registration to RFID-based audits, through to proactive maintenance and AI-powered dashboards to replace the guesswork by providing real visible, authentic information for campuses, hospitals and large enterprises.
