How Beneficial is Asset Tracking Software for Construction Organizations?

Construction industry is filled with numerous types of equipment, of all sizes and sophistication. Managing and monitoring them can be quite a challenging activity. Succeeding in tracking them can make a huge difference in the running of business operations.

The tools & equipment used by construction organizations are often mobile and transferable as they need to be deployed at different work sites as per requirements. No doubt, keeping the equipment secure is critical as it has a direct bearing on the bottom-line of the construction company. Hence, there is a need to find the perfect solution to tackle the issue of equipment management.

This is where asset tracking software acquires prominence. It provides real time location of assets and equipment, while consequently keeping them secure.

What is Asset Tracking?

Asset tracking enables in recording asset movement. Assets can include costly items such as laptops, computers, vehicles, and other items that play a key role for any business. The system provides varied information such as asset status, location, condition, etc.

Asset tracking software benefits are realized via RFID tags, GPS, QR codes methods of identification, and tracking. The main objective of the software is to optimize asset usage and provide information security to valuable assets and equipment. The other objective is to increase asset control and asset performance and decrease equipment losses.

Also Read: Asset Management for Construction Firms: 4 Strategies for Success

The software provides several means to save money, time, and effort for the organization. Indeed, asset tracking is crucial to an organization's business continuity and growth.

Let us see how asset tracking software helps in the construction industry:

1.     Asset Tracking

According to the study conducted by TT Club in 2018 covering North and South America, the USA featured in the second-highest rank for cargo theft incidents, behind Mexico. Most thefts occurred on trucks, with culprits targeting cargo trucks in an overwhelming 86 percent of incidents and employing the slash and grab tactic in 48 percent of incidents.

This clearly shows theft is a big concern all over the world. Therefore, in order to secure assets, asset tracking software has become a dire necessity.

Moreover, the system provides real-time location using tracking device technology. This paves the way to save considerable money, time and energy that would otherwise have been fruitlessly spent on finding the assets.

2.     Minimizing Risk

The construction industry is much challenged due to weak communication. This leads to project delays and cost escalation. The other major reason is issues arising in the equipment as they are not maintained regularly and do not work efficiently.

When construction work is going on at full pace, equipment breakdown can halt operations. This results in delayed work and lost productivity. No proper information is passed to the teams and work priorities get muddled. Due to all these factors, the entire project suffers on time, cost and quality parameters.

However, with asset management software in place, work orders can be created and schedules organized in a better way. Moreover, the system centralizes all the information on the assets and equipment.

Work orders are easily managed through the software. Every asset is tracked, monitored and controlled. The system informs about asset maintenance too. In short, the software assists in increasing productivity and optimizing site operations.

The alert and notification features of the solution notify the team on upcoming projects so that they can plan accordingly and mitigate all risks.

3.     Safety

Accidents happen in the construction industry and the worksites are highly risk-prone areas. According to available data, Occupational Safety and Health Administration,  “Out of 4,779 worker fatalities in private industry in the calendar year 2018, 1,008 or 21.1% were in construction — that is, one in five worker deaths last year were in construction.”

Also Read: Why Asset Tracking Software Is Crucial for Transport Industry?

Hence, employee safety is a concern of utmost importance for construction companies. As accidents can happen anytime, necessary precautions need to be taken.

When assets are in good condition and regularly maintained, the probability of mishaps related to malfunctioning can be totally avoided.

A significant benefit of using asset management software is that it helps in enhancing the safety level of the organization in terms of protecting assets, personnel, and the community at large.

4.     Equipment & Asset Maintenance

Equipment maintenance has remained one of the oldest challenges in the construction industry, e.g. work is on at full swing, a machine stops suddenly and work grinds to a halt. This is a classic case of unexpected breakdown leading to a break in the activity.

Therefore, when the equipment is in top condition, it performs at its peak and productivity increases. A well-maintained machine is at the base of a smooth operation as it is protected from a sudden breakdown.

The inherent challenge lies in the fact that a separate team is needed to manage such activities related to maintenance and monitoring. However, with the assistance of asset tracking software, all the relevant information about equipment or assets are readily available.

The software also keeps record of each asset, e.g. it can inform when the last maintenance was done and when the next one is due. Maintenance activities can be scheduled without interrupting routine operations.

In the absence of asset tracking management software, unfounded decisions can lead to consequences like production loss, rescheduling of project timelines, material wastage from unused resources, overtime cost of labour due to downtime, disposal of machinery and equipment before the end of their useful life, etc.

Also Read: Major Challenges for Manufacturing Industry & How Asset Management Assist?

Conclusion

There can be denying the fact that asset tracking delivers a lot of benefits to the construction industry. The asset tracking software provides features such as real-time location, customized reports for making informed decisions, audits for enhanced accuracy, maintenance data, and so forth. The system can contribute to a better Return on Investment, cost savings, and smooth operations.