What Is Asset Tracking? (Types & Benefits)

Asset tracking is a method for monitoring an organization’s physical assets — for example, machines, vehicles, tools and IT equipment — to increase their efficiency, extend their lifespan and minimize downtime and its associated costs. GPS, barcodes and RFID tags are some of the asset tracking devices used to monitor asset locations, usage and maintenance needs in real time. For example, a fleet management company may use GPS asset tracking to create more efficient routes that can help them get to customers more quickly. 

Of course, knowing where your assets are and how they’re functioning is the foundation of any asset maintenance management program. 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 — and they are tracked 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. Inventory is a broader concept and can encompass assets, but it is primarily tied to items that cycle through a business.

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, and anyone can use a mobile device as a barcode scanner to access asset details, manufacturer recommendations, and maintenance or repair 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 monitors and records the real-time location data of mobile assets, like vehicles, or helps with asset tracking between multiple job sites.
• 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 

Asset tracking allows businesses to better monitor and maintain equipment, extending machine efficiency with 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, which helps improve profitability in the long run.
• Better compliance: Accurate records created using asset tracking ensure businesses meet regulatory requirements and maintain proper documentation.
• Increased productivity: With the knowledge gleaned from asset tracking data, maintenance teams spend less time searching for equipment and more time on core maintenance tasks.
• 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 while allowing 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: Using software, as opposed to Excel spreadsheets, allows you to easily store detailed data about an asset — including its serial numbers, purchase and maintenance dates, location and condition — 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 to make sure it meets the needs of your business.

Coast’s CMMS 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!