6 Reasons Why Asset Tracking Management System is Essential

Nowadays, companies gather various assets to boost their value and earnings. Yet, keeping track of these assets often leads to productivity issues. With businesses dealing with more assets than ever, having a reliable asset management system is crucial.

This system automates tracking, schedules maintenance, and calculates expenses, ensuring companies have optimal control. As businesses grapple with asset cost management and effective handling, a centralized asset management application becomes a necessity.

Choosing the right asset management system tailored to each business simplifies asset control, laying the foundation for ongoing success. This article explores six reasons why having an asset tracking management system is a must for businesses navigating today’s competitive landscape.

What is an Asset Tracking System?

An asset tracking system is a method businesses use to monitor and manage physical assets like equipment, tools, vehicles, and inventory. By tagging these assets with technologies such as barcodes, QR codes, or RFID, the system allows for real-time tracking of their location, status, and usage, contributing significantly to asset performance management.

The system typically includes tracking software that integrates with a database to store detailed information about each asset, including its purchase date, maintenance history, and current condition. Advanced systems may also use GPS or IoT technology to provide continuous location updates for mobile or high-value assets.

Using an asset tracking system helps businesses increase efficiency by reducing the time spent locating assets, optimizing asset use, and preventing loss or theft. It also ensures timely maintenance, enhances security and supports regulatory compliance by maintaining accurate records.

What is the Difference Between an Asset Tracking System and an Inventory Tracking System?

The primary difference between an asset tracking system and an inventory tracking system lies in what they are designed to monitor and manage.

An asset tracking system focuses on tracking high-value items that are considered long-term assets to a business, such as equipment, machinery, vehicles, or tools. These assets are typically used over a period of time and may require maintenance, depreciation tracking, and other management tasks.

The main goal of an asset tracking system is to monitor the location, condition, and usage of these items to ensure they are effectively utilized, maintained, and safeguarded.

An inventory tracking system, on the other hand, is designed to manage goods that are meant for sale, distribution, or consumption, such as raw materials, finished products, or retail stock.

This system helps businesses keep track of stock levels, sales, restocking, and order fulfillment to prevent stockouts, overstocking, or loss. The focus is on managing the quantity and flow of inventory items, rather than their individual condition or maintenance.

In summary, an asset tracking system is used to manage the location, status, and lifecycle of fixed assets, while an inventory tracking system is focused on managing the flow and availability of goods or materials in a supply chain.

What Kinds of Technologies that Companies Use for Asset Tracking?

Companies use several technologies for asset tracking, each suited to different types of assets and tracking requirements. Here are some of the most common technologies:

1. Barcode and QR Code: Barcodes and QR codes are among the simplest and most cost-effective asset-tracking technologies. Each asset is tagged with a unique barcode or QR code, which can be scanned using a mobile device or barcode scanner to log its location, status, and other details. This technology is ideal for assets that do not require real-time tracking.

2. RFID (Radio-Frequency Identification): RFID uses radio waves to communicate information stored on a tag attached to an asset. Unlike barcodes, RFID tags can be read from a distance and do not require a line of sight. This makes RFID suitable for tracking a large number of assets quickly, such as in warehouses or large facilities.

3. GPS (Global Positioning System): GPS technology is used to track the real-time location of mobile or high-value assets, such as vehicles, equipment, or shipments. GPS trackers transmit location data to a centralized system, allowing companies to monitor and manage these assets remotely.

4. Bluetooth Low Energy (BLE): BLE technology uses low-energy Bluetooth signals to communicate between asset tags and nearby Bluetooth-enabled devices. It is useful for indoor tracking or in environments where GPS signals are unreliable. BLE is often used in conjunction with IoT devices for tracking assets within a defined range.

5. IoT (Internet of Things) Sensors: IoT sensors provide advanced asset tracking capabilities by monitoring various conditions such as temperature, humidity, motion, and location. These sensors can communicate in real-time with asset management software, providing detailed insights and alerts for asset management, particularly in industries like healthcare, logistics, and manufacturing.

Why Asset Management System is Important?

The utilization of an advanced asset management system emerges as a strategic imperative, offering multifaceted advantages that transcend traditional asset oversight methods.

Here’s a comprehensive exploration of the advantages businesses stand to gain by adopting a robust asset management system:

Comprehensive lifecycle oversight

Implementing an advanced asset management system provides businesses with the capability to meticulously monitor the entire lifecycle of assets. From the initial acquisition phase to ongoing maintenance and eventual phase-out, this approach ensures a holistic and systematic management strategy.

By having a clear view of an asset’s journey, organizations can make informed decisions at every stage, optimizing resource allocation and enhancing overall operational efficiency.

Enhanced compliance and transparency

The asset management system not only elevates compliance but also instills a culture of transparency within the organization. Through meticulous recordkeeping and streamlined audits facilitated by the system, businesses can achieve higher levels of accuracy, accountability, and adherence to industry regulations.

This transparency not only fosters regulatory compliance but also builds trust among stakeholders, contributing to the overall credibility of the organization.

Strategic asset utilization and cost mitigation

The system offers valuable insights into asset utilization, allowing businesses to make informed decisions for strategic improvements. Moreover, the incorporation of proactive maintenance practices aids in mitigating costs associated with unforeseen repairs.

By identifying potential issues before they escalate, organizations can optimize asset performance, minimize downtime, and ultimately reduce operational costs.

Furthermore, the system is reasonably priced. To view the pricing structure of one of the highly recommended asset management systems in Singapore, simply click on the image below.

Maximized equipment lifecycles and operational efficiency

Extending the lifecycles of equipment becomes achievable through a comprehensive asset management approach. This not only minimizes the need for premature replacements but also ensures that assets consistently fulfill their designated functions.

The result is enhanced operational efficiency, where assets contribute optimally to the organization’s objectives throughout their extended lifespans.

Cloud-based agility and future-proofing

The adoption of a cloud-based approach ensures operational agility, providing data protection, flexibility, scalability, and seamless integrations. This not only future-proofs the organization against evolving technological landscapes but also aligns with emerging trends in remote asset management.

With the cloud as the foundation, businesses gain the flexibility and adaptability needed to stay ahead in a dynamic business environment.

Efficient barcode and QR code generation

Asset management systems streamline the process of creating barcodes and free QR codes for various purposes, including products, storage bins, ID cards, packaging, and documents.

This automation enhances overall efficiency, reducing manual efforts and ensuring accuracy in labeling assets. You can also create barcodes and QR codes on products, storage bins, ID cards, packaging, documents, etc. automatically with the most complete barcode inventory system.

Fundamentally, integrating a sophisticated asset management system enables businesses to enhance operational efficiency, cut expenses, guarantee compliance, and strategically position themselves for future growth.

Embracing these extensive advantages positions organizations to attain unparalleled success in the competitive business environment of today.

Common Challenges and Risks of Asset Management

Navigating the landscape of asset management comes with its own set of challenges and risks that organizations must address to ensure seamless operations.

In this section, we will discuss the common challenges and risks faced by businesses in the realm of asset management, shedding light on the intricacies involved in safeguarding and optimizing valuable resources.

The loss of assets due to misplacement

Loss and displacement of equipment are significant problems because they can decrease revenue due to poor security. To control losses through theft or misplacement, companies must implement an effective asset tracking system. 

Asset tracking solutions allow you to label all your tools and equipment with barcode or RFID (Radio Frequency Identification) technology. These two options can be selected based on an in-depth analysis of the company’s needs.

Without routine asset tracking, your company can suffer financial losses because you can be charged with paying taxes, insurance, purchases, and maintenance of assets that are not needed.

Therefore, it is crucial to know the number of assets you own and the number of listed assets in your books. Closely monitoring all of your purchases will help reduce costs associated with retrieving lost or stolen items. You will notice the results by harnessing the power of custom QR codes.

Out-of-stock or overproduction

When it comes to holding certain assets, determining the proper amount can be tricky. When it comes to stock management, you tend to face under or over-assets. This can result in overhead costs or cause workflow delays.

Why do companies handle inaccurate stock levels so often? In large part due to an inadequate system to measure the quantity of stock required. Most effectively, the company chose an asset management system that allows the business to set a minimum threshold notification for all assets.

Whenever this limit is reached, an automatic purchase order is created, and the associated vendor will receive information. Conversely, excess stock takes up warehouse space and makes items obsolete if stored too long.

To avoid such mistakes, it is advisable to study consumption patterns extensively so that businesses can calculate an accurate demand for an asset.

To avoid such errors, it is advisable to study consumption patterns extensively so that accurate demand for an asset can be calculated or use inventory management software. You can optimize stock management across multiple locations with inventory management software

Damage to tools that often occur

Using automated tracking software, companies can routinely carry out repairs and maintenance over the equipment’s life cycle. With a software asset management system, businesses can find out the condition of their assets in real-time.

For example, it makes it easier to find information about the service history of the company’s machines/vehicles, find out the status of the vehicle’s engine, track the location of the vehicle, and arrange a schedule for the next maintenance.

As a result, preventive action successfully improves company performance by keeping equipment in good condition and lowering overall maintenance costs.

Event failure due to unavailability of assets

The company holds many external and internal meetings and conferences every day. The purpose of these events usually varies, from important agenda meetings or sometimes office leisure activities. Therefore, office events must be well planned.

Any asset tracking software helps manage your company’s available assets, reserved, inspected, or under maintenance, making it easier for you to plan events. With the help of automated applications, you no longer need to waste your valuable time inputting asset updates.

Conclusions

In summary, the Asset Tracking Management System stands as a cornerstone for businesses aiming to enhance operational efficiency and productivity. Through automated processes encompassing monitoring, depreciation checks, maintenance scheduling, and contract management, this system ensures the generation of precise and insightful asset reports. Click the image below for a thorough detail of the system!