Importance of Asset Tracking in Manufacturing Industry

In the manufacturing industry, the equipment required for manufacturing a product or item is very expensive. Which makes them assets to the company. Also, there is fierce competition in the market.

Therefore, asset tracking and asset management are very important for a company. Asset tracking and asset management makes your company efficient and provide an accurate and deep understanding of the whole production chain.

But most manufacturing companies are not able to perform effective auditing and asset management. The main reason behind it insufficient, ineffective and disorganized asset tracking & underutilization of assets.

This is why we are discussing how important asset tracking in the manufacturing industry! Here we go!

What is Asset Tracking?

It is the process of the tracking location of a physical asset with the help of a barcode scanner, RFID (Radio Frequency Identification), or any other technology. It provides real-time data and the location of an asset. Sometimes asset tracking is also called Asset Management.

Also Read: 7 Best Asset Management Practices for Your Business

How does asset tracking work in the manufacturing industry?

Each asset or product is given a number which is a unique identification number. After that, the number is scanned by scanning devices, and that equipment stores the data into the database. The number provides you with real-time information. That number is always monitored to keep the track of assets and its whereabouts.

Most important question!

How important asset tracking software in manufacturing industry?

Asset tracking is one of the most required practices to become a reputed and successful organization in the market. As it provided tremendous advantages to you and your company. The asset tracking software increases company productivity and utilizes an asset to the fullest it can be.

You can always keep track of your asset and inventory so that it does not interrupt your daily work processes. When all the asset & inventory information can be availed easily then your employees can work on other projects rather than finding the asset & inventory manually.

More importantly, they do not have to make manual data entry which makes them prone to error.

What are the benefits of asset tracking in the manufacturing industry?

Here are some of the major benefits of asset tracking in the manufacturing industry:

1. Perform Audit Effectively

Auditing is very crucial for identifying and verifying what assets your organization owns. How many assets are on lease and where they're located? It can provide answers to all these questions.

The auditing part plays an important role while calculating taxation. According to the depreciation, it can provide you with tax relaxation. You can perform a quick audit with the correct asset audit software. The organization can also track the asset's location and status. It also streamlines compliance.

2. Better Inventory Management

Inventory is one most important for manufacturing a product. A manufacturing company have many factories across the world.  The lacking part is centralization. It often leads to passing wrong information & mismanagement of work.

When inventory is not available in stock then it results in decreased productivity, business loss & delivery is not done on time. If a machine fails and spare parts are not available in stock, then it can hurt your pocket very badly.

Asset tracking system centralizes your business; therefore, no wrong information is passed. It also lets you know how much inventory is left in the stock.  

3. Reduce Labour Cost

When you are monitoring your employee's activity with the real-time location. Then you can analyze how many employees spending time on each activity in his/her office time. You can assign your employees tasks on the priority basis of the work.

Similarly, if any ad-hoc work arrives. This is how you can enhance the work in progress state. This is how you can maximize employee performance and putting your manpower where you actually require them.

Also Read: Useful Points to Remember to Embrace Asset Tracking

What are the Asset tracking methods used?

The asset tracking methods that are used Barcode (QR Code), RFID (Radio-frequency identification), NFC (Near field communication). Barcode is one of the oldest and reliable ways used for asset tracking.

It avoids many issues that arrive with the spreadsheet method. It is a simple, easy, and effective way used in the manufacturing industry. RFID technology utilizes electromagnetic fields to transfer data from an RFID tag to a reader.

RFID can get you accurate, real-time tracking data for assets. NFC is a derivative of RFID technology which tends to provide more secure transmission between the devices with its reduced transmission range i.e. 4cm.

These are the technologies that are used in asset tracking. But it's important to understand what your organization's requirement is and which technology & method will be best for your organization.

Also Read: Benefits of Implementing CMMS Software in Several Industries

Conclusion:

As of now asset tracking & monitoring, innovation is adopted by enterprises for keeping track and observing asset's status & locations. Modern tracking innovation can likewise be categorized under plant asset management systems where enterprises influence such trendsetting innovations to forestall resource disappointment and to significantly improve resource execution.

This transformational innovation is playing a crucial job in many key businesses or applications, for example, logistics, sports, healthcare, construction, and obviously manufacturing.

If you need any help in implementing asset management software in your manufacturing organization. We asset infinity are here to assist you.