Asset tagging is an important activity that must be done by all organizations, especially those organizations which are equipped with lots of assets. Asset tagging can be beneficial and provide several advantages to businesses that will make them more efficient and productive. In this blog, we will know what asset tagging is, what is the need for asset tagging & what are the steps involved in an asset tagging system! So, without wasting any time let us begin!
What Is Asset Tagging?
Asset tagging is the phenomenon of attaching a tag to an asset. Asset tagging is done to movable assets and immovable assets. These tags are helpful in asset identification as all tags have a unique identification number (UIN) that helps in accurate asset tracking.
Asset tagging is helpful when you have lots of assets that are the same look-wise. With asset tagging, you can retrieve all the information of each asset individually.
Whenever the asset tag is scanned it fetches all the information for scanning a smartphone or any scanning device that can be used.
Asset tags provide valuable information such as document information, data regarding asset location, asset utilization frequency, maintenance frequency, and maintenance history as well.
What Is an Asset Tagging System?
An asset tagging system keeps track of all assets and equipment with the help of asset tags. It eliminates the need for manual asset and inventory tracking as it automates the process and chances of human error decrease as well.
The asset tagging system helps complete the utilization of assets. Moreover, it is also helpful in depreciation calculation and proper management of maintenance.
The asset tagging system collects data on each asset that assists organizations in making strategic and data-driven decisions as the system provides accurate information.
Recommend To Read: Asset Management Challenges in the Absence of Asset Tagging
It helps organizations in understanding what to expect from new assets and similarly, they can know if their asset is performing well or not with data assistance.
What Are the Benefits of an Asset Tagging System?
The benefits of the asset tagging system are discussed below:
1. Avoiding Asset Theft
Asset theft is one of the major issues that every organization must deal with. It becomes more important when your organization is asset-intensive.
However, with an asset tagging system, you can keep track of every asset and in that way, you can easily avoid asset theft. Organizations suffer from huge losses every year due to theft, but asset tagging resolves this issue as it provides the location of assets all the time.
2. Track Assets for Location
When you have lots of assets it becomes hectic to keep track of every asset who is using it, where it is located, and so on. But you don’t worry when assets are tagged and an effective asset tagging system is utilized. As it answers all the questions.
3. Asset Maintenance & Asset History
Assets are important to be maintained otherwise asset failure can occur. So, every asset must be given maintenance, and inspection of assets must be done regularly.
Calculating asset performance is crucial so that maintenance scheduling can be done for those assets which require maintenance. The asset tagging system enables you to keep track of asset maintenance and provide asset history as well through which you can analyze asset performance.
With a few clicks, you can look at asset history, so it is a time-saving process.
4. Minimized Human Error
Data entered manually is prone to error and is a time-consuming process as well. But in the asset tagging system, all the data can be stored by scanning code, and you do not have to enter data manually.
This system precisely & easily collects data and decisions based on this data are accurate as well.
What Are the Steps of the Asset Tagging System?
The steps involved in the asset tagging system are discussed below:
1. Ensure each asset gets a unique identification number
It is important that each gets a unique identification number otherwise it can create a lot of confusion. Unique identification numbers play a significant part in asset tracking.
2. Choosing Asset Tracking Technology
As every organization has different requirements for tracking. For instance, some use basic, and some organizations want advanced asset tracking.
Asset tagging can be done through several asset tracking technologies such as Barcode, QR (Quick Response) Code, RFID (Radio frequency), GPS (Global Positioning System), BLE (Bluetooth low energy), IoT (Internet of Things), NFC (Near field communication).
3. Determine Asset Label Type
One size does not fit all, especially in a business as every business has a different requirement and their office location varies some have high temperatures and some locations have a cold temperatures, and some are rainy areas.
Therefore, choosing the right type of label is crucial for business. Moreover, these tags must be saved from tampering. If the label is torn, then it might create issues in scanning.
4. Identifying Category & Asset Type
In the event that you're executing an asset tracking software, making asset classification is a fundamental stage for future asset management. The asset might be categorized by department, cost, use, or quite a few different factors.
You might need to pick a classification of asset type that lines up with the interaction used to classify assets for effective accounting.
5. Enter Data into the System
All the information of each asset shall be stored in the system whenever a new asset is purchased. Lots of organizations do not execute this practice and as a result, these assets are easily lost and not found.
Information such as asset identification number, model number, vendor details, Date of acquisition, Status, Location, depreciation information, disposal date, Asset value, and so on.
An asset tagging system is important for asset-intensive organizations. It provides several benefits to the organization. Investing in an asset tagging system will provide your business with an extra edge and you will save a lot of money as well.
Frequently Asked Questions (FAQs)
Q.1 - Which Industries Utilize Asset Tagging Most?
Asset tagging is used in all industries especially those industries which are asset intensive such as hospitals, hospitality, oil & gas, retail, warehouse, education, manufacturing, etc.
Q.2 - Which Are the Most Utilized Asset Tags?
Barcodes and RFID labels are the most utilized asset tags.
Q.3 - Which Is the Most Cost-Effective Asset Tracking Technology?
Barcode is the most cost-effective and oldest asset tracking technology.