Organizations provide costly equipment to their employees so that they do their work more efficiently. These assets have parts that are costly as well. These costly pieces of equipment need to be maintained regularly otherwise machine performance and efficiency will decrease and parts of the machine will stop working and you will need to replace those parts. This entire process will be costly!
That is why you need to keep track of assets and proper asset tracking is essential. As they say the more you know about your assets the more you can save. What is asset tracking? What are the advantages of asset tracking and what are the best asset tracking practices that we will know in this blog! So, without wasting any time let us begin!
What Is Asset Tracking?
Asset tracking provides accurate location of assets, it is helpful for business. Asset tracking enables organizations to keep track of the movement of all assets belonging to an organization inside and outside the premises of the organization.
Asset tracking eliminates chances of asset theft and asset misplacement. As we all know, asset theft has become a huge problem all over the world. As assets are costly and when they are lost it not only leads to unnecessary expenses and organizations & employees productivity suffers.
Employees use assets from one place and put them in another place. As a result, do not find the asset when it is required. It impacts the productivity of the organization and hinders daily operation as well.
As tracking eliminates those issues and it also helps in eliminating ghost assets as well.
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According to the JW Surety Bonds, “Employee theft is responsible for 42.7% of total inventory loss in US stores.” With asset tracking, you can avoid these types of scenarios easily. Asset tracking is also helpful in several other ways, such as in asset maintenance. When an audit is performed, you can gather your assets easily with asset tracking.
What Are the Best Asset Tracking Practices?
Below we have described the best asset tracking practices:
1. Eliminate Spreadsheet Utilization
One of the main reasons behind inaccurate data is the utilization of spreadsheets. As multiple people can access a spreadsheet. As a result, Chances of error are increased and accuracy decreases. Furthermore, tracking changes are also not easy to do. That is why eliminating spreadsheet utilization is essential for business.
2. Each Asset Must Be Tagged
One of the best asset tracking practices for effective asset tracking is tagging every asset. When you tag every asset, it provides an accurate location of each asset. You can collect several other types of information as well. Moreover, it also provides data that help in making informed decisions.
3. Categorize and Prioritize Each Asset
It is particularly important that you categorize every asset and decide the priority of each asset. It is helpful in several ways. More importantly, you can keep a sharp eye on your assets, which have high priority. Although with Asset tracking you can keep on all assets, categorizing and prioritizing assets simplifies work.
4. Do Not Take Decisions Based on Assumptions
Organizations do not have sufficient asset data nor do they have accurate information, but they make decisions based on assumptions. Insert tracking provides valuable data and information that helps organizations in making accurate decisions, not just based on assumption. With asset tracking data, they can set future goals and make informed decisions.
5. Ensure Asset Depreciation Tracking
When you do not pay attention to the depreciation then you might end up paying more taxes. Asset tracking is also helpful in depreciation management. Lots of organizations ignore depreciation and do not take advantage of depreciation. However, it can also provide you with tax benefits. Knowing about depreciation will also assist you in making informed decisions when you can decommission it.
6. Invest in Automated Software
For effective asset tracking and keeping track of every asset, it is important to invest in automated software such as asset management software. It is extremely helpful to the organization in keeping track of assets in an automated way.
When you invest in automated software. Your efficiency and productivity increase. As this software alerts you on a regular basis. Moreover, you will get accurate asset information with asset reports and customized reports as per your requirement. Asset tracking software can be very useful in asset maintenance.
So these were the main practices of asset tracking. There is no doubt that asset tracking is essential for businesses as it can save assets from theft and provide security for the assets. However, in order to boost efficiency organizations must utilize asset management software in order to grow business more effectively.
This software will be helpful in inventory management, maintenance management, asset auditing process, maintaining compliance, and so on.
Frequently Asked Questions (FAQs)
Q.1 - What Is an Asset Tag?
Asset tagging has a unique identification number that helps in asset tracking. For this purpose, a unique identification number is stored in the asset management software, and whenever this tag is scanned it automatically fetches all the information related to it. And pass it to contain information such as company logo, asset name, and other asset information.
Q.2 - What Are Ghost Assets? Why Are They Dangerous for Business?
Ghost assets are those assets that are mentioned in the accounts book physically not available on the organization premises. They are lost or misplaced. Moreover, you are paying taxes for assets you are not even using. With asset tracking, you can avoid ghost assets. If cost assets are discovered during an external audit, then the organization might end up paying a huge penalty and it might also be considered fraudulent activities.
Q.3 - Describe a Use Case of Asset Tracking for Vehicles?
With asset tracking, you can ensure that you use assets and save expenses as well. For example, A manufacturing unit sends a vehicle full of items for delivery, with asset tracking you can check the route & traffic jam in real-time. With Asset tracking, you can avoid those areas & take shortcuts so that the vehicle reaches its destination on time and consumption of petrol is also minimized.