Asset Tracking

What is asset tracking?

Asset tracking is the process of monitoring an organization’s fixed assets to confirm their location, maximize lifetime efficiency, and reduce downtime and its costs. For organizations in asset-heavy industries like manufacturing and construction, these assets will include machinery, vehicles, and other heavy equipment.  

Assets vs. inventory

Though you may hear the term “asset inventory management” used as a synonym for asset management or asset tracking, there are some key distinctions between your organization’s assets and inventory. Assets are the tools, equipment, and infrastructure that keep your business running while “inventory” is a broader term that refers to the process of cataloging items used in your operations. Inventory could refer to your list of assets and equipment, or it could also refer to the parts and components that make up your products or help keep assets operational as in the term “spare parts inventory.” 

How does asset tracking work?

While they may seem simple, asset tracking systems rely on a range of technologies in order to monitor and provide access to detailed information on equipment. It is a combination of asset trackers, identification tags, networks, and sensors that work together to provide a seamless tracking experience. Here is a run-down:

• Barcodes and QR codes: A standard component of asset management systems, bar codes and QR codes placed on assets make it easy to access data with barcode scanners. QR codes are often preferable to bar codes because employees can scan them from any angle with their mobile devices. They can also include more data than bar codes. Integrating asset tracking systems with other platforms ensures that barcode scanning uploads data to an accessible, central repository. 
• RFID tags: Radio-frequency identification tags offer another way of tracking business assets. One benefit of RFID tagging is that users don’t need to scan the device to monitor their assets. You can monitor these tags and the assets they’re attached to so long as you have the appropriate tracking device. 
• Low-power wide-area networks (LPWAN): LPWANs offer an option for tracking assets and transmitting data over longer distances while using less power. While LPWANs are a network rather than an actual device, they enable IoT devices to connect a high volume of assets over a larger area. 
• GPS asset tracking: These devices transmit location and other asset data over satellites, connecting assets all over the world with high accuracy. 
• Bluetooth asset tracking: Asset tracking devices powered by Bluetooth technology emit signals on a recurring basis and sync with other Bluetooth-enabled devices. Users can monitor these assets from apps on their mobile devices.
• IoT technology: This technology uses sensors to collect and transmit data on assets wirelessly to a central repository or database.

Why is asset tracking important?

Whatever tools your organization uses to track assets and however maintenance work is planned and scheduled, a formal system for asset tracking pays off. While there are some upfront costs to invest in implementing asset management software for tracking, organizations with even a small portfolio of assets can earn big returns. Here are just some of the benefits of asset tracking: 

• Cost savings: Tracking each asset’s health and performance in real-time provides useful insights for proactively scheduling maintenance tasks, identifying over- or under-utilized assets, and making data-driven “repair vs. replace” decisions. 
• Regulatory compliance: The data collected and recorded by asset tracking devices streamline documentation, making condition readings and notifications automatic and less prone to human error.
• Improved productivity: Increased visibility into asset location and performance reduces downtime by making it easier to find assets and proactively plan maintenance work.
• Extended asset lifespans: When organizations introduce formal asset tracking systems they help ensure critical equipment remains available and productive as long as possible. 
• More secure worksites and facilities: Heavy equipment is highly valuable and its price tag can make it a target for theft. Adding assets to tracking systems make it easy to keep an eye on them at all times and ensure they’re only used by authorized personnel following the appropriate safety protocols. 

Asset tracking software

While organizations may still rely on written ledgers or Excel spreadsheets, digitizing asset tracking with a software solution dramatically streamlines key processes associated with tracking and managing assets. Organizations may choose to integrate their various asset tracking technologies with a number of different asset management solutions. 

• Computerized Maintenance Management System (CMMS): A centralized platform for storing asset data to support and streamline maintenance activities and strategies. 
• Enterprise Asset Management (EAM): Software that helps organizations strategically manage equipment through its entire asset lifecycle including procurement, setup, process integration, and disposal.
• Enterprise Resource Planning (ERP): Large-scale enterprise software solutions that integrate numerous modules designed to manage functions like HR, finance, inventory, and procurement. 

Generally, the broader the solution (i.e., the more departments and functions it is intended to serve), the less specialized it will be. Asset tracking is just one aspect of what a large enterprise system offers, so it may not be right for an organization looking for a focused tracking and maintenance solution that has deeply customized solutions for that function. On the other hand, if your organization has a complex web of workflows and interdependencies, an integrated ERP might be worth the investment.

Core features any asset tracking software should have

The primary purpose of any asset tracking software is to provide a comprehensive, real-time view of the state of a company’s physical assets. That includes asset location and health as well as other details such as characteristics and maintenance histories. 

To achieve this wholistic view and comprehensive functionality, asset tracking software should have the following features: 

• Real-time tracking: Monitors the geographic location of assets with GPS, RFID, or barcode trackers, ensuring they are always findable. 
• Asset information: Documents key asset details such as manufacturer (OEM), spare parts and components, depreciation, and other lifecycle-relevant information. 
• Maintenance scheduling: Triggers maintenance tasks based on time, usage, or other parameters and automates task scheduling to ensure consistent execution of routine upkeep. 
• Audit trails: Simplifies and centralizes the documentation of required maintenance activities and inspections through functions like timestamps, checklists, and more, making compliance and audits easier. 
• Reports & analytics: Aggregates asset data for reporting and analysis, revealing trends in asset performance and condition in a shareable format or dashboard. 
• Mobile application: Offers access to asset management functions from anywhere, reducing desk time and administrative burden.
• Alerts & notifications: Automated reminders and triggers that inform users of necessary tasks like parts reordering, machine upkeep, work requests, and other critical steps in asset management workflows. 
• User permissions & access control: Ensures the right users have access to the information they need to do their jobs, while maintaining the privacy and security of asset data. 

Asset tracking use cases: industry examples

Asset tracking systems play an important role for organizations of all types. Whether an organization has one asset on the books, or ten thousand, there are unique applications for asset tracking in any industry.

Asset tracking in retail

For retailers, assets like cash registers are essential for efficient customer service while heavy equipment like forklifts help employees keep things organized behind the scenes. Introducing a system for tracking and managing this essential equipment helps optimize maintenance schedules and avoid delays at either end of the store. GPS-enabled asset tracking also enables retailers to track the movement of key assets from store to store or warehouse to warehouse. 

Asset tracking in manufacturing

A large manufacturing plant may count hundreds or thousands of items in its asset inventory. Keeping a dependable database of each asset’s location data makes it easy for even novice technicians to navigate your facilities quickly, find the assets they’re looking for, and perform routine or emergency maintenance. Asset tracking devices offer manufacturers a source of performance data to inform more strategic, cost-effective decision-making and ensure every asset generates the maximum possible value from implementation to decommissioning.  

Asset tracking in construction

Asset tracking solutions ensure construction companies maximize the return on their investments in costly heavy equipment and vehicles. Construction companies use asset tracking to manage equipment, tools, and materials across expansive job sites. By using these technologies, companies can prevent loss, reduce theft, and make sure equipment is available when needed. 

In addition, maintenance schedules can be more easily coordinated, and assets can be efficiently rotated between projects. Having all asset data in one place also simplifies budgeting and safety and compliance activity. 

Asset tracking in healthcare

In healthcare, asset tracking helps manage medical equipment, supplies, and devices across hospitals or clinics that require their equipment to be finely tuned and ready to use at any time. By using RFID, barcodes, or GPS, hospitals can track the location, usage, stock, and maintenance status of assets in real-time, ensuring critical equipment and supplies are available when needed. 

Asset tracking also supports compliance programs in this highly regulated industry by maintaining inspection and certification records in a central location, and triggering notifications and alerts when inspections are due.  Overall, it improves operational efficiency and patient care quality.