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Every piece of equipment your business uses is an investment. The challenge is ensuring you get as much use and value from those assets as possible. Loss, theft, and poor maintenance reduce the returns on these investments.
Tracking assets using equipment asset tags is an accessible and effective way to understand the state of your business's tools and property and keep them in the best possible condition. Tracking items with a label isn’t a complicated concept, but you can still take important steps to make your program more effective.
In this guide, we delve into the essentials of asset tagging, including its benefits and a step-by-step approach to optimizing equipment asset tag usage for enhanced asset management efficiency.
Main Takeaways From This Article:
- Asset tagging involves attaching unique identifiers or tags to physical assets for tracking, monitoring, maintenance, and protection purposes. It's crucial for asset management efficiency, regulatory compliance, and enhancing asset lifespan and value.
- A step-by-step asset tagging process includes selecting suitable tags, developing comprehensive asset profiles, tagging assets, and conducting regular audits, which is essential for proper asset tagging.
- Asset tags can range from barcodes and RFID tags to QR codes, NFC tags, and GPS tags. Each serves different tracking needs based on asset type and operational requirements. Your selection depends on factors like the environment, the level of detail needed, and the asset's mobility.
- Asset tagging benefits include enhanced security and theft prevention, maintenance efficiency, accurate asset valuation, streamlined compliance and auditing processes, and improved customer satisfaction.
- Implementing an asset tagging system involves choosing appropriate tags, determining tag placement, categorizing equipment, selecting the right asset management software, establishing standards and training for staff, updating asset records regularly, and performing periodic audits.
What Is Asset Tagging?
Asset tagging is a process where unique identifiers, or equipment asset tags, are attached to physical assets. When you tag assets, you can effectively track, monitor, maintain, and protect business assets while ensuring regulatory compliance and promoting efficient asset management.
Importance of Asset Tagging
Asset tagging plays a pivotal role in achieving efficient asset management and ensuring compliance with regulatory standards. It enables organizations to track and manage their physical assets accurately, from procurement to disposal.
This systematic approach to asset management optimizes asset utilization and reduces unnecessary expenditures, as well as ensuring adherence to auditing and regulatory requirements.
Tagging facilitates real-time visibility of assets, helping prevent loss and theft and safeguarding a company's investments. Ultimately, asset tagging is indispensable for enhancing operational efficiency and financial accountability within any organization.
Understanding The Asset Tagging Process
When we talk about asset tagging, we're referring to a comprehensive process that involves several significant steps.
1: Allocating Unique Identification Codes
This begins with attributing unique identification codes (UIDs). UIDs are essential as they enable easy identification and tracking of an asset from the moment it's tagged and entered into the system.
2: Selecting Appropriate Tags or Labels
The second step focuses on selecting appropriate tags or labels. The nature of the tags or labels depends on the type of assets you're dealing with. For instance, durable metal tags might be appropriate for heavy machinery, while RFID tags could be better suited for tracking IT equipment.
3: Developing Comprehensive Asset Profiles
Once you've selected your tags, it's time to develop a comprehensive asset profile. This includes recording all vital information about an asset, such as purchase date, value, life expectancy, and maintenance history. An accurate asset profile not only aids in tracking the asset but also in making strategic decisions about its lifecycle.
4: Attaching Asset Tags
The final step is physically attaching the asset tags. Depending on the type of tag, this could involve anything from adhesive labels, fixed brackets, or even tamper-proof security seals. This process needs to be done cautiously to ensure the tag is secured and visible. Remember, asset tagging isn't just a one-time activity. Regular updates and audits are required to maintain accuracy in your fixed inventory.
Types of Asset Tags
Asset tags for equipment can come in many forms, including barcodes, radio frequency identification (RFID) tags, QR codes, NFC tags, and GPS tags, allowing you to look up important information about a piece of equipment quickly.
Barcodes
Barcodes are among the most popular and cost-effective choices for asset tagging in businesses. These tags can be scanned promptly to locate physical assets in an establishment, significantly improving operational efficiency. From small office supplies to large machinery, barcodes can be attached to fair-sized assets without obstruction or damage.
RFID Tags
Radio Frequency Identification (RFID) tags are celebrated for their long-range data-reading abilities. These tags provide detailed visibility of the asset location, serial number, and condition. They can be particularly useful for tagging larger equipment such as HVAC units, play a big role in streamlining maintenance logs, and often prove to be a reliable alternative to manual data entry.
QR Codes
Offering a cost-efficient way to manage asset tracking in various businesses, QR codes for asset tagging are highly versatile and effective. These 2D barcodes can store a considerable amount of data and are easily scanned with a smartphone. The detailed nature of QR codes allows for complex asset profiles with elements such as purchase date, warranty details, maintenance logs, and location details.
NFC Tags
NFC (Near Field Communication) tags are highly preferred for applications that require close proximity for security reasons. They are excellent for tracking assets because of their small size and seamless integration into various assets. Their unique two-way communication system provides strong security measures, preventing any mishandling or theft. NFC tags are utilized across industries for asset management, ticketing systems, making payments, and sharing digital content due to their versatility.
GPS Tags
GPS tags are an effective asset tagging solution, particularly suited to assets spread across large geographical areas or assets in transit. By transmitting precise location data in real time, they enable businesses to monitor and control their assets remotely, effectively tackling asset misplacement and delivering robust fixed inventory management. Notably, with their ability to record movement and direction, GPS tags can offer added value to sectors such as logistics, construction, and fleet management.
RedBeam's Compatibility with Various Asset Tags
RedBeam's asset tracking system is designed to support a wide range of asset tags, ensuring versatile and comprehensive management of equipment across industries. The system is compatible with barcodes, RFID tags, and QR codes, each facilitating different facets of asset management with efficiency and accuracy.
- Barcodes: RedBeam harnesses barcode technology to facilitate easy scanning and tracking of assets. This method is instrumental in quickly locating and managing physical assets within any organization, significantly enhancing operational workflows and inventory processes.
- RFID Tags: Through its advanced support for RFID technology, RedBeam enables users to assign and associate RFID tags to assets effectively. This capability allows for the long-range reading of tagged items, providing detailed visibility of asset locations, conditions, and histories. RFID tags are particularly useful for managing large or high-value equipment, automating data entry and reducing errors.
- QR Codes: Similarly, QR codes are supported by RedBeam’s system, allowing the storage and retrieval of substantial data amounts. This includes detailed asset profiles, which can encompass purchase dates, warranty details, maintenance records, and more, all accessible via simple scans with a smartphone.
With its ability to support a variety of asset tags, RedBeam not only ensures detailed asset management but also prepares organizations for scalable solutions. Next, we will delve into the significant benefits of implementing a comprehensive asset tracking system.
Benefits of Implementing an Asset Tracking System
The most obvious benefit of tagging your equipment is keeping track of it. Consistent tool tagging and scanning allow you to find and use equipment whenever needed. Here are more benefits of asset tagging:
1. Enhanced Security and Theft Prevention
In sectors such as education, construction, and sports & athletics, where the equipment is high-value, tagging prevents theft and propels investigations when theft occurs. By identifying each asset individually, unlawful use or removal can be quickly detected, and appropriate measures can be taken. Furthermore, in the case of non-profit and religious institutions, asset tagging can ensure that entrusted assets are not misused or misallocated.
2. Maintenance Efficiency and Cost Savings
Healthcare and manufacturing industries have numerous assets requiring regular maintenance. By tagging these assets, the data collected enables informed decisions about repair work. Unnecessary repairs or replacements can be avoided, promoting considerable cost savings. Not only does this ensure dependable asset performance, but it also prolongs asset lifespan, maximizing the return on investment.
3. Accurate Asset Valuation
Asset tagging provides crucial data about the asset's condition and depreciation rate. This is particularly beneficial to sectors such as government and manufacturing for accurate financial and fixed inventory reporting. It can also be a key element for hospitality establishments in determining the value of their assets intentionally, leading to precise financial planning and informed asset replenishment when necessary.
4. Streamlined Compliance and Auditing
For healthcare facilities and educational establishments, being compliant with regulatory requirements is a must. Asset tagging tracks the location and usage of assets. This makes audits easier and helps with following rules and regulations. It also helps governments keep track of their equipment and assets by showing where they are, their condition, and who owns them.
5. Improved Customer Satisfaction
In customer-focused sectors like hospitality and sports & athletics, asset tagging ensures assets are available when needed, leading to superior customer service and increased customer satisfaction. Knowing the availability and status of assets in real-time can greatly reduce delay times and create a positive customer experience by ensuring smooth operations and timely services.
6. Accurate Asset Valuation
Asset tagging ensures that businesses know the exact value of their assets, enabling more accurate financial reporting. This is especially important in the manufacturing sector, where expensive machinery and plant assets are integral to operations.
7. Compliance and Auditing
Asset tags simplify the compliance and auditing process by keeping a clear record of all assets, their values, and their conditions over time. This feature is particularly useful for non-profit organizations and religious institutions, where transparency in asset management and financial reporting is of paramount importance for donors and regulators.
How To Implement a Streamlined Asset Tagging System
Implementing an asset tagging system can streamline your organization's asset management processes. Here's a step-by-step guide to get you started.
1. Choose the Right Asset Tags
The first step to implementing an asset tagging system is to choose the right tags for your needs. As mentioned above, barcodes, QR (Quick Response) codes, and RFID tags are the most popular choices.
Barcodes are the simplest kind of tag, consisting of a series of lines of different thicknesses. Because you can print them yourself, barcodes are a good low-cost option, but they also store a limited amount of data. Barcode scanners also read tags by reflecting a beam of light off the label, which means you have to have a direct line of sight to the barcode.
QR codes store information through a unique pixelated square or rectangle. They also require a direct line of sight but can store more data than a simple barcode.
Finally, RFID tags use radio waves to identify tags. This means they can be scanned without being visible, and you can even scan large quantities of items quickly. However, because they contain microchips, RFID tags are more expensive than the previous options.
Once you've chosen the scanning technology you’ll use, you should consider the appearance and durability of your tags. There's a wide range of equipment tag options, from simple stickers to metal tags with permanent adhesive. If your equipment is exposed to a lot of wear and tear or is used in a harsh environment, you’ll need to find especially durable asset labels.
2. Find the Right Place for Asset Tags
Where you place equipment asset tags can make a big difference in usability. That’s why placement should also be a factor in choosing your tags. For barcodes and QR codes, you need to place the tags somewhere your team members can not only find but somewhere they can easily reach with a scanner.
To help your team scan and track assets, tag placement should be documented and consistent. For example, your standard operating procedure for accepting new office equipment might be to place the tag on the front or next to any screen or interface. This means your team will know where to look, and you can easily identify equipment that still needs to be tagged.
While RFID tags don’t necessarily need to be visible, using a consistent placement system will make it easier to ensure every asset is appropriately tagged. Whatever kind of tag you use, you should account for potential wear and damage. If possible, place tags somewhere they won’t be scratched or otherwise damaged.
3. Categorize Your Equipment
Categorizing your equipment can make asset audits, equipment distribution, and tracking easier. One of the easiest ways to do this is with colored tags. When different categories of assets have different colored tags, they can be easier to identify visually. There’s a wide variety of different labels to choose from, and you can even order custom asset tags to fit your needs.
Think through how your equipment will be categorized. Is it based on monetary value? How frequently property is moved or borrowed? You can also color code labels by year purchased to identify aging equipment in need of repair or replacement.
If your business has multiple divisions, departments, or teams, you can also use color-coded tags to avoid mix-ups. For example, if you have three locations, you could use different color tags to ensure that equipment used in the field is returned to the correct location. Regardless of how you choose to categorize equipment, make sure these categories are documented so anyone on your team can confidently track or manage assets.
4. Choose the Right Asset Management Software for Your Business
The success of your asset tracking system will depend on your tools, and the software is possibly the biggest decision. Asset management software is the database for all the important details about your equipment. Typically, you’ll use a scanner to read an equipment asset tag, which will pull up the asset record.
With the asset management software industry projected to reach $5.2 billion in 2024, there are many different platforms, each with pros and cons. Since your team will need to use the software, you can’t overlook the importance of usability and an intuitive interface. And finding a system that integrates with your other tools will save you time and a ton of frustration. RedBeam, for example, offers REST APIs, which allow the software to connect with almost any tool.
5. Establish Standards and Train Your Team
Systems like asset tracking are most successful when employees are invested and informed. That means setting clear standards and practices and communicating them to your team. It’s also a good idea to get input from your colleagues as you create and implement a system. They may think of an important detail or a smart way to avoid human error.
Consider these questions as you create your asset-tracking system:
- What assets will be tagged?
- Whose responsibility is it to tag new equipment?
- What details will you track (location, model, user, etc.)?
- When does equipment need to be scanned or updated in your asset management platform?
- Who's responsible for equipment audits?
Once you have your standards and practices set, don’t skimp on training and communication. It’s a good idea to provide both live training and discussion, as well as written documentation about how the system works. Any new procedures will take time and effort to implement, so look for learning opportunities and recognize success along the way.
6. Update Your Asset Records Often
For asset tracking to work, it has to be a consistent part of your operations. That means tagging each fixed asset that you want to track, but it also means updating your records frequently. Updating and adding details to your asset management system should be built into your business procedures.
The best way to ensure asset records are updated is to identify and communicate to your team when items should be scanned. For example, you could determine that every time a certain category of equipment leaves your headquarters, the user and reason has to be documented.
Sometimes, an update will simply be scanning the tag, which can be automatically recorded in your asset management software. However, you should also regularly update details about the quality and functionality of the equipment. This can help you anticipate future expenses and assign accurate valuations to your assets.
7. Perform Regular Asset Audits
Asset tracking is an everyday project, but it still pays to periodically audit your system. In the rush to get things done, maintenance and updates can sometimes fall through the cracks. Scheduling regular fixed asset audits will help you identify missing equipment and offer a chance to perform maintenance if needed.
To keep it simple, you can designate a certain time of year or interval at which you will audit your equipment (annually, quarterly, etc.). Even if you don’t find any immediate issues with your equipment, asset audits help you stay abreast of the condition of your tools. If you see that equipment will eventually need replacement, you can plan and budget for that expense.
Asset audits are a great time to revisit the implementation of your tracking system. Ask whether new equipment is being appropriately tagged, as well as whether asset records are being updated as they should be.
Maximize Efficiency With RedBeam's Asset Solutions
Most businesses will benefit from using equipment asset tags and an asset tagging system, but the specifics of your program will depend on your equipment and business.
Whether you’re just getting started with asset tracking or revamping an existing system, you can use these best practices to ensure you have accurate records and help your business get the most out of its physical assets.
When it comes to asset tracking technology, RedBeam has partnered with some of the leading manufacturers and technology resellers in the industry, such as Zebra Technologies.
Zebra's top-of-the-line technologies are seamlessly integrated into our asset-tracking technology package and are fully compatible with RedBeam software. The Zebra warranty provides customers with peace of mind that their hardware investment is secure, while its advanced features significantly increase the speed and efficiency of asset tracking operations.
Our extensive knowledge of Zebra products enables us to make individualized hardware recommendations based on your business requirements and budget.
If you want to see how RedBeam’s intuitive, flexible asset management platform can benefit your organization, schedule a demo today.
Asset Tag FAQs
What Is Asset Verification and Tagging?
Asset verification involves validating the existence, ownership, and value of assets within an organization. Once verified, these assets are then tagged - a process wherein unique identifiers (tags) are attached to each asset.
These tags facilitate easy identification, location tracking, and management of assets. The entire process is essential for effective asset management, which helps improve productivity and save costs for the organization.
What Is the Tagging Process?
The tagging process involves assigning unique identifiers or tags to assets, which helps organizations track, monitor, and maintain their valuable items. This process can be easily automated through software like RedBeam and can include steps such as selecting the appropriate tags, developing comprehensive asset profiles, placing the tags on the assets, and regularly updating the asset records.
How Do I Start Asset Tagging?
To implement asset tagging, start by auditing your current assets, identifying their types, and categorizing them accurately. You should then assign a unique ID number to each asset for precise tracking. Determine the type of asset tags you'll use based on your specific requirements, and then attach them to visible parts of the assets.
Make sure to use asset management software for centralized data management. It's also crucial to conduct regular audits and updates and integrate security measures to protect your asset data from unauthorized tampering.
How Much Does Asset Tagging Cost?
The cost of asset tagging varies based on the chosen tags or asset labels (e.g., RFID or GPS tags), the number of assets, and the complexity of the asset management software. You should also consider the cost of implementing and maintaining the asset tagging system. Investing in quality asset tagging software like RedBeam can save you money in the long run by efficiently managing your assets and reducing losses.
What Is an Example of Fixed Asset Tagging?
Fixed asset tagging usually includes attaching a durable tag, like a QR code, to a physical asset, like an HVAC unit. The tag has a unique identifier that tracks where the asset is, its condition, and other important details.
An example of fixed asset tagging can be a company tagging all of their fixed assets, such as computers and software, with QR codes and then documenting these details digitally to improve inventory management, reduce losses, and enhance asset accountability.
