In many industries, businesses require a clear understanding of the status and location of their assets. Electronic asset tracking has proven to be an effective, streamlined method that helps meet this need.
Asset tracking is a highly relevant topic as it is expected to reach $40 billion in the market by 2027.
What is Asset Tracking
An asset tracker is a tool used to track the location and status of physical assets, which aims to increase accountability and reduce the likelihood of assets being neglected, lost, broken, or stolen.
The type of assets tracked differ from company to company, and each business must decide for itself which assets to track. This could be anything, from heavy manufacturing equipment, to inventory.
You can track a variety of information, and you decide what is relevant for your business. Commonly tracked information includes:
- basic information about the asset (asset description, model)
- usage history (to identify where, when and who used the asset)
- asset location
- asset identification items (serial number, RFID/barcode…)
- date of purchase and years in operation
- previous maintenance history
Asset Tracking vs Inventory Management
Asset tracking is often confused with inventory tracking and inventory management in general. However, these are two very different concepts.
The term inventory management refers to the tracking of assets that are going to be sold, and have not undergone any depreciation in the process. For instance, a clothing manufacturer will have a variety of clothes in stock, which they eventually sell.
However, the same manufacturer will have different machines that are used to make the clothes. These machines will not be sold until they have reached their useful life (they are not inventory items). They will become assets in the manufacturer’s books.
Think of inventory items as consumables sitting on the shelves until they are consumed or sold. In contrast, think of assets as machines and equipment you use to carry out your work daily.
Benefits of Proper Asset Tracking
A company’s ability to access accurate, real-time information determines whether it will be profitable or drown in administrative tasks
A few key benefits to asset tracking include:
1. Guarantees Adherence to Regulations
It is important to note that not all assets are created equal, and that applies to the regulations that govern them as well. If there is no asset tracking system in place, it becomes difficult to know where to look for assets, how many assets there are and what types are available. In addition, some assets could be overlooked during inspection checks. If this happens, companies risk being penalized for non-adherence.
2. Saves Time and Money
When done correctly, computerized asset tracking:
- provides real-time, systematic information that provides better asset accountability
- reduces losses (both lost/wasted time and money)
- decreases likelihood of items being misplaced or lost
- lowers administrative costs by removing paperwork that is prone to human error
- guarantees damaged assets are removed from the books
The above will eventually result in more efficiency and profits.
3. Improves Asset Lifecycle Tracking
Assets undergo wear and tear over time, changing their innate productivity levels. Being aware of which assets are aging and which ones should be replaced is asset lifecycle tracking, and is useful in routine maintenance. This also reduces the likelihood of unplanned breakdowns.
A comprehensive overview of all of your assets and their conditions, on the other hand, makes it much easier to make decisions on whether to repair or replace.
Try CHAMPS Today!
The only way you’ll be able to appreciate it is to try CHAMPS for yourself. Contact debby@champsinc.com or call (352)-795-2362 to set up a demo showcasing the full functionality of our asset tracking module. Many of CHAMPS customers opt in for asset tracking because it is effective, efficient, and convenient. Your maintenance team has better things to worry about than the status of assets. Empower your team to have the tools they need to keep assets in check.
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