Simplified Explanation of Asset Tracking & Asset Management

Asset Tracking & Management plays a very important part of running a business. In this blog, we are answering some basic questions regarding the key topics revolving around asset tracking.

We are also highlighting some of its most important benefits.

Below are the questions we are covering in this blog.

1. What is Asset Tracking?
2. What are the techniques used in Asset Tracking?
3. What are the advantages?
4. How is it done?
5. What should be tracked?
6. Which industry uses Asset Tracking?
7. What is the future?

Let's start with the first question:

1. What is Asset Tracking?

It is the process of knowing the exact location of your physical asset. It is known as Asset Tracking. It improves business processes by reducing cost and time and generating more revenue and efficiency.

2. What are the techniques used?

There are several methods can be used for it such as:

• Barcode Label - Your valuable item can be tracked via barcode using QR Code. The QR code can be scanned with a barcode scanner or mobile. Barcode labeling is very cost-effective.
• RFID Tag - RFID also used for tracking. It can either be a small range or long-range depending on your business requirement. RFID can be active or passive. With RFID, a person can scan multiple assets within a few seconds.  
• GPS - Assets may be tracked all around the world utilizing gadgets which consolidate the GPS system or cell phone. Such gadgets are known as GPS asset trackers, they have their internal battery for power.
• NFC -Latest pattern in resource following is utilizing NFC is the latest technology developed for Asset tracking. NFC improves tracking all you got to do is tap & you get all the information.

You can use any of these above-mentioned methods, but you have to keep in mind the business requirement for effective workflow.

3. What are the advantages of Asset Management?

It has several advantages:‍

Finding Ghost Asset - Remember last year you brought 4 laptops and one of them is missing. You don't know its whereabouts. In simple word ghost assets are those assets which are written in your books but physically missing. But with proper Asset Management, you would never lose asset again.

Extend Life Cycle - If your asset such as machine, the vehicle performs heavy work then you might know the importance of maintenance. With Asset tracking, you get regular updates for an asset for its maintenance and as a result, the life is extended of an asset.

Minimizing Asset/Equipment Loss - When you have all the information about an asset or equipment on your system. Then asset theft or loss chances are reduced.  

Precise Asset Information - Tracking the asset can get you crucial information such as Who has the asset? What is the current state? Where is it located? When you have precise information, it helps you in making a better decision.

Save Time & Money - If a machine does not work properly that means it required maintenance and it can take a lot of time & money. As a result, it can dis-organize your workflow and lack productivity.

Schedule maintenance - You get alerts & notifications for the asset maintenance which means you do not have to worry for maintenance. & no need to write it manually in the record as this asset management system does it for you.  

Maximize Asset Efficiency - Proper maintenance of an asset not only lead to asset efficiency but also a reduced risk of sudden maintenance. The life cycle of an asset is also increased.

Establish Compliance - With the assistance of Asset Management Software, you can get a detailed report of asset management compliance. Not just this, your organization comply with regulatory requirements.

4. What should be tracked?

Few examples that can be tracked are Office furniture, Carpet, HVAC equipment, Manufacturing equipment, Room appliances, Computers, Printers and copiers, IT equipment, etc.

5. Which industry uses Asset Tracking?

Asset tracking is used by lots of industries such as Hospitality, Manufacturing, Healthcare, Technology, Education, Banking, Construction, Government, Non-Profit, Food & Beverage Industry, and many more...

6. How is it done?

As we have mentioned above, the techniques which can be used for asset tracking.  But how is it applied with a barcode?

You must have seen the paper black-and-white zebra stripes with the number written on any stuff you purchase from a retail shop.

That sticker is barcode & you also have seen the worker, scanning that barcode with a barcode scanner software. Once it scans the barcode it read its unique identification number then generates the product information on your device.

7. What is the future?

The future of Asset Tracking & management be understood by some interesting facts:

• 6 percent Compound growth annually
• Total assets under management by the Indian AMC increased by 32.5 percent - At the end of 2017, the total assets under management by the Indian AMCs increased by 32.5 percent to Rs 22.60 trillion (approximately $350 billion) over the last year.
• In 2020, Investable the asset will be increased by approx. 34 Trillion, which means more assets & more tracking.
• By 2025, 80 percent of Enterprise will migrate entirely away from traditional data centers - It is estimated that in 2025 every data center will be on the cloud & the traditional data center will be passed.
• The Asset Management industry added over 9 Million investor accounts - The industry added over nine million investor accounts (measured by the number of folios) to achieve a total number of 62 million investors.

Conclusion

The main objective of an asset tracking software is to maximize asset control efficiency and minimize asset loss. The asset tracking system should be implemented with automated asset tracking methods that are fixed scanners, barcodes, asset tags that generate reports for managing assets.

It replaces the use of the spreadsheet, through which functionality improves. Asset management software is effective & makes employees much more efficient & it offers real-time tracking.

A company can avoid unnecessary expenses, unexpected maintenance, asset loss or theft, etc.  As you have read above, and the statics shows that the future of asset management is bright. It has great potential to save you lots of money & take your business to a whole new level.