Useful Points to Remember to Embrace Asset Tracking

What is meant by Asset Tracking?

In the IT industry, asset tracking refers to the process of tracking physical assets by scanning labels or tags attached to the assets by using different technologies like barcode, RFID, NFC, geo-tagging, etc.

IT asset tracking uses an IT inventory database that would keep record and maintain inventory data for all:

• Devices
• Software
• Network Configuration
• Cloud Assets
• IT Documentation
• Other IT infrastructure related data

Any kind of change in the movement of devices is recorded for the future reference if needed. These changes in movement may include:

• IP Address change
• Physical relocation of device
• Device removed from the network
• Installation and uninstallation of the software
• Expiration of software license

“Asset Management involves the balancing of costs, opportunities and risks against the desired performance of assets, to achieve the organizational objectives.”

- The Institute of Asset Management

Here are some useful points, that can help you embrace your Asset Tracking Software:

1. Responsibility of Assets:

All the assets of an organization are always being tracked by the organization itself. Anyhow, it gets too costly to track and assign ownership to every asset. Hence, the organization keeps a special track of the most important and useful assets.

The importance of an asset can be listed on the basis of on a number of factors as sensitivity, critically, value or its compliance requirements.

2. Use of Potable Barcode Scanners:

The use of portable barcode scanners to aid the data collection where it is more relevant. Using portable barcode scanners by information technology and related facilities means that they are practically receiving and installing the assets.

It will help you reduce manpower by gathering the same information in less time and effort than the people working there.

Also Read: Which Industries are using RFID for Asset Tracking?

3. Fixed Asset Planning:

Fixed asset planning is a complicated process which does not stand apart. The fixed asset planning runs on various correlated departments and elements with information like accounting, recording, and tracking.

Fixed asset planning is important as it provides every little detail of lumpsum every department, working cordially with reports.

4. Tracking every Asset:

As every single asset of the organization is tracked but sometimes it may not worth putting the same effort to track them.

As based on the size of the organization and the number of assets used in it, makes it necessary for you to focus on other worthy assets too (beyond regular tracking of those only assets).

For example, the building you own, you must monitor its condition and depreciation, its more than just barcoding all the assets you own.

5. Long-term Financial Planning:

The long-term financial strategy provides a view of the gap that could arise between the organization's revenue or funding and the capital expenditures in the future years.

Fixed asset management involves detailed asset inventories with their operational and maintenance tasks and its long-term financial planning to ensure annual revenue reserves and reinvestment.

6. Use of effective processes and documentation:

The processes that involve the implementation of asset management and tracking include integrating inventory activity, material requirement planning, production scheduling, unit costs for labor, transfer of inventories to and from the warehouse, the difference between physical counts and recorded amounts.

The ownership of IT assets also includes paperwork which is important as well as the focus point for the process of asset management, which not only surrounds the asset but the related documentation that should also be looked after.

The list of documentation that would involve in the implementation of asset management and tracking are warranty information, maintenance agreements, and proof of purchase, these help in support of ongoing maintenance of the asset lifecycle.

Also Read: What is Leased Equipment Tracking and Why It is Important?

7. Mobile Technology Solutions:

Asset tracking in the utility sector is more difficult as compared to the other industries. The utility sector assets range from fixed poles and pipelines to the moving vehicles, parts and people.

The mobile technology solution helps you integrate inventory management and asset tracking easily by improving the bottom line and overall operational efficiency.

8. MRO approach:

MRO (Maintenance, Repair, and Operations) refers to the supplies and goods which are used in production processes but are not part of the final product.

The principle of every organization is to manage its facilities at the lowest cost that too in the least possible time.

Therefore, the storeroom with MRO support organizes the right parts to the right places at the right time, increasing the organization's operational efficiency.

9. Centralized source for MRO:

The organization working with asset inventory management would agree to the point, that MRO supplies that get stored at one central location per facility are more efficient than storing them at different and unidentified locations.

It is important to have computer systems to track, manage, and control inventory for organizing data usage and transaction costs in accordance with supply chain performance.

Also Read: How Functional is Inventory Management in Healthcare Industry?

10. Managing capital and operational budgets:

The capital budget is used by organizations for raising large sums of money to invest in long-term assets. The method in use for calculating net present value, internal rate of return and return on investment.

Whereas the operating budget in the organization creates a detailed forecast of its revenue, expenses and net income over a given accounting period.

Organizations also go for large and multiple purchases at one time in order to capitalize the expense and removing it from the operating budget which reduces operating expenses and increases the profits.

11. Tracking of IT hardware:

Hardware is the upcoming commodity which is increasingly becoming a priority at the desk side level, data centre server, network and infrastructure.

These hardware assets do require a significant amount of capital investment and extensive maintenance costs for the organization.

While asset loss, business and workflow interruptions and data breaches still remain at risk. Therefore, tracking and management of hardware assets in the data center efficiently is possible for business operations and to get maximum return on investment.

Also Read: Why businesses need a cloud-based Inventory Management System?

Conclusion

There is no doubt that asset tracking provides tremendous advantages no matter what the size of your organization is. Asset tracking is successful in every industry. If you want to grow your business, fixed asset tracking and planning are necessary for you.

As it has the capability to take your business to another level. If you need any assistance implementing asset tracking. Our company Asset Infinity can assist you.