Asset Tracking

What is asset tracking?

Asset tracking refers to the process of monitoring an organization’s physical assets—such as machinery, vehicles, and other high-value equipment—in real time or near real time. The core goals of asset tracking include:

• Confirming each asset’s location
• Maximizing efficiency and lifespan
• Reducing unplanned downtime and associated costs

In industries like manufacturing or construction, the need for robust asset tracking is especially pronounced. Machinery and vehicles are not only expensive to replace but also essential for day-to-day operations. By maintaining updated records of every asset’s status and whereabouts, you can prevent theft, optimize maintenance schedules, and boost operational productivity.

Assets vs. inventory

While the terms “asset inventory management,” “asset management,” and “asset tracking” sometimes overlap, it’s important to understand the difference between assets and inventory:

• Assets: These are the tools, equipment, and infrastructure critical to running your business. In construction, for instance, a backhoe or crane is an asset.
• Inventory: A broader term that typically refers to all cataloged items used by your organization. Your inventory might include everything from spare parts and components (e.g., tires, bolts) to finalized products stored in a warehouse.

In practice, organizations often manage both inventory and assets simultaneously, but they may use different processes and systems depending on whether the aim is to track item usage, maintenance schedules, or availability for sale.

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.

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.

Types of asset tracking systems

1. Manual asset tracking

Many organizations still use manual methods—spreadsheets, physical logbooks, and inventory checks—to track asset status and maintenance. While this approach may work for very small businesses, it poses several challenges:

• High likelihood of human error and outdated records
• Difficulty scaling as you acquire more assets
• Little to no real-time information about asset health or location

2. Asset tracking software

Asset tracking software plays a critical role in automating routine processes, centralizing asset data, and simplifying the asset lifecycle from acquisition to disposal. By leveraging technologies such as RFID and GPS, these solutions offer real-time visibility into asset locations and performance, helping organizations make more informed, data-driven decisions. Key advantages of asset tracking software include:

• Centralized dashboard for real-time location and performance insights
• Helps schedule preventive maintenance automatically
• Optimizes inventory management (e.g., spare parts)

Best asset tracking software solutions

1. CMMS (Computerized Maintenance Management System)

CMMS software specializes in maintenance and work order management. By automating tasks like preventive maintenance scheduling and real-time equipment health monitoring, these platforms help organizations reduce downtime and optimize asset performance.

• Key strengths: Maintenance planning, automated work orders, and real-time equipment monitoring
• Ideal use case: Businesses looking to streamline day-to-day maintenance tasks, particularly those with substantial repair or service operations

2. EAM (Enterprise Asset Management)

EAM software takes a more holistic approach to managing assets across their entire lifecycle—from the initial purchase and setup to decommissioning or replacement. EAM platforms often integrate with other core business systems, offering a 360-degree view of asset status, performance, and financial impact.

• Key strengths: End-to-end asset lifecycle management, integration with financial/ERP modules, and multi-site visibility
• Ideal use case: Organizations with complex operations and large asset portfolios that need extensive tracking from procurement through disposal

3. GPS-based tracking software

For industries where asset location is paramount—such as trucking fleets, construction sites, or equipment rental—GPS-based tracking is indispensable. It gives organizations an accurate, real-time map of where their mobile assets are, along with capabilities like geofencing alerts and theft prevention.

• Key strengths: Location tracking, route optimization, and geofencing-based security
• Ideal use case: Any business where vehicles or portable, high-value equipment must be monitored continuously

4. ERP (Enterprise Resource Planning)

ERP software typically covers a broad range of functions—such as HR, finance, inventory, and procurement—and may include an asset management component. Because ERPs serve multiple departments, the asset tracking features may be less specialized than what a dedicated CMMS or EAM provides.

• Key Strengths: Enterprise-wide integration, single database for multiple business functions
• Ideal Use Case: Large organizations with interconnected workflows that need broad-spectrum visibility and process automation

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.

Industry use cases for asset tracking

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.

Best practices for asset tracking

Asset tracking may seem as simple as sticking a barcode on an asset and typing in a few equipment details, never to return to the asset record again. However, to get the most benefit out of it, asset tracking should be rolled out carefully and the processes involved consistently reviewed and updated.  Here are a few best practices that will help you get it right:

• Introduce unique tags for each asset. Ensuring a unique name for each asset will make identification easier and less error-prone.
• Perform regular internal audits: Stop and review the information in your asset record to ensure documentation is flowing through as intended.
• Prioritize data integrity and accuracy: Spend the time to train your team on data entry and the importance of accuracy in order to ensure any reports or trends reflect reality.
• Consider the entire lifecycle: Assign a tag and document the necessary asset information immediately upon acquisition, all the way through decommissioning to ensure all stages of the lifecycle are tracked.
• Choose tools and technologies carefully: Thoroughly research and trial each tool and asset tracking technology you are considering to ensure it meets your organization’s needs and unique assets.