What Is Asset Tracking? Benefits, Tools & Software Explained

Asset tracking involves monitoring physical assets to improve efficiency, reduce downtime and extend asset life. Most asset tracking systems use GPS, barcodes and RFID to monitor location, usage and maintenance in real time. For example, a fleet management company may use GPS asset tracking to create more efficient routes.

Of course, you can’t manage maintenance well if you don’t know where assets are or how they’re performing. Asset tracking can improve operational efficiency by helping companies make better use of an asset. Read on to learn the key benefits of asset tracking as well as the various ways to track assets.

Asset vs. Inventory

The terms “asset” and “inventory” are sometimes used interchangeably, but they do have some key differences.

• Assets refer to the equipment, infrastructure and tools essential for keeping business operations running efficiently. Examples include machinery, vehicles, office equipment and IT systems. Assets are mainly long-term investments that help businesses generate revenue over time. Businesses track them to monitor their performance, lifespan and maintenance.
• Inventory is the process of cataloging and managing items within a business. It can include finished products, raw materials and parts or supplies that are intended for production, sale or consumption. Unlike assets, inventory tends to be more regularly consumed or sold.

A manufacturing company’s machines would typically be classified as assets, while parts used to keep those assets operational would fall under inventory. Properly distinguishing between the two allows companies to create a more effective asset inventory management system.

How Do You Track Assets? 

There are several tools that can be used to track assets. These include:

• QR code and barcode scanning: We’re all familiar with using barcodes and QR codes in our daily lives, and they’re a great way to track assets. Businesses can place barcodes on their equipment. From there, anyone can use a mobile device or an online barcode scanner to scan the barcode to access asset details and maintenance history.
• RFID tags: Radio-frequency identification (RFID) makes API calls to scanners for automated and real-time tracking. This method is typically seen in use cases with a high volume of assets.
• GPS location tracking: GPS (Global Positioning System) tracking tracks the real-time location of mobile assets.
• Bluetooth tracking: Bluetooth beacons and tags are used in small areas and attached to assets to transmit radio signals to Bluetooth receivers, which capture the asset data and send it to a central management system for analysis.
• Low-Power Wide-Area Network (LPWAN): LPWAN technology enables the long-range tracking of assets across large areas. It is ideal for industries like logistics or agriculture.
• IoT technology: IoT (Internet of Things) enhances asset tracking by using connected sensors to monitor location data, performance and condition in real time. When used with some of the tools listed above, it allows businesses to track high-value or remote assets.

Benefits of Asset Tracking 

Better asset tracking means fewer surprise breakdowns and less equipment downtime. Key benefits of this process include:

• Enhanced visibility of assets: Real-time tracking gives businesses insight into asset location, status and usage from any location.
• Cost savings: Asset tracking prevents unnecessary purchases and emergency maintenance. It allows teams to schedule preventive maintenance and tackle potential problems before they become larger, more costly issues.
• Better compliance: Accurate records created using asset tracking ensure businesses meet regulatory requirements and maintain proper documentation.
• Increased productivity: When assets are easier to find, technicians can focus on real work.
• Longer asset lifespans: Regular maintenance and monitoring reduces asset depreciation over time. This not only reduces the likelihood of breakdowns but extends asset lifespan.
• Improved safety: Proper maintenance reduces the risk of accidents caused by potential equipment failures, improving safety for all employees.

An Intro to Asset Tracking Software

Businesses use asset tracking software to help monitor and manage their assets. While some of its functions may overlap, the following software types have different purposes.

• Equipment maintenance software tracks and schedules asset maintenance and provides a centralized location where teams can instantly access information about an asset, submit and track work orders, and generate automated reports. 
• Computerized Maintenance Management System (CMMS) software is broader in scope than equipment maintenance software in that it covers all facets of asset maintenance. A CMMS automates tasks, tracks inventory and schedules asset maintenance and repairs. It also allows everyone involved to communicate and track tasks in real time.
• Enterprise Asset Management (EAM) Software tracks and manages the asset lifecycle, offering features like predictive maintenance, real-time data analysis and strategic asset management across multiple locations or departments. EAM software allows teams to have a full view of an asset’s performance — which helps optimize its use and lifespan and reduces maintenance costs.

Key Functions of Asset Tracking Software 

No matter the software solution you choose, asset tracking software offers the following functions to help manage and maintain assets efficiently:

• Asset information storage: Unlike using Excel spreadsheets, software allows you to easily store detailed data about an asset in a centralized database. This also helps decrease inaccurate data input as a result of human error.
• Preventive maintenance scheduling: Asset tracking technology helps simplify preventive maintenance scheduling by automatically sending notifications to maintenance techs whenever maintenance is due. Scheduling can be based on time intervals — for example, once every six months — or based on an asset’s use.
• Mobile accessibility: Most asset tracking solutions offer a mobile app that simply allows users to track assets, manage maintenance tasks and update information via mobile devices.
• Real-time tracking: Maintenance teams can monitor asset location and status from any location in real time. This ability reduces the risk of loss or theft for high-value assets.
• Reports and analytics: Asset-tracker data provides key insights into asset performance as well as maintenance and cost history. Reports can be customized to help businesses identify workflow inefficiencies and forecast asset needs for better decision-making.

What to Consider When Implementing an Asset Tracking System

If you’re new to setting up an asset tracking system, there are a few tips to consider to streamline the implementation process. Those include:

• Label each asset individually: Creating a bar code or QR code for each individual asset helps keep your asset management system organized. These asset tags allow you to simply scan the barcode using a mobile device to access an asset’s current location, serial number, description, user and maintenance history, condition and any other critical information. 
• Prioritize data entry and accuracy: Your data is only good as what you enter and track, and that’s especially true when it comes to maintenance work. That means maintenance techs need to enter maintenance work — for instance, what’s performed and how long it takes to perform it — into the system as soon as it’s performed. To make sure everyone on the team knows the best procedures for data entry, it’s important to provide some training to ensure consistency.
• Perform routine internal audits to review asset information: Conducting internal audits will keep your asset management system error-free. This can be done through scheduled audits to review and update asset information systematically and through random spot checks for additional scrutiny.
• Invest in quality software and tracking tools: Before purchasing asset management software, take its scalability, accuracy and cost into consideration. Make sure it meets the needs of your business, especially if you’re working within a tighter budget, before investing a few grand.

How Coast Helps With Asset Tracking

Coast is a top asset tracking software because it combines ease of use with customization to meet your team’s asset management solution needs at a very affordable price. You can use our app to track asset and inventory information, create work orders and automate tasks, including preventive maintenance, while everyone involved can view a project and communicate in real-time. Our customizable dashboards display real-time insights and trends to help you make the most of your asset tracking and maintenance needs. 

Looking to track your assets efficiently? Sign up for Coast today!