Companies can lose millions of dollars from lost assets. In the construction industry alone, annual equipment theft is estimated between $300 million to $1 billion. What’s more, less than 25% of that stolen equipment is recovered each year. For this reason – and many more – asset tracking is a must-implement solution for enterprises big and small. But, before we take a deep dive into its many benefits, let’s take a closer look at what asset tracking really is.
Asset tracking is the organizational method used to keep track of an enterprise’s fixed and non-fixed assets, including its inventory, fleet, various equipment, structures, data, laptops and other devices, furniture, and much more.
These days, companies make use of heavy-duty asset tags and labels, like Camcode’s line of foil, Metalphoto®, and polyester-constructed products. When paired with an asset tracking management tool or comprehensive asset tracking solution, these tags contain important information about the item, including its location, maintenance schedule, check-in/check-out schedule, depreciation value, and more.
Now that you’ve familiarized yourself with how asset tags, in relation to asset tracking, work, let’s see why asset tracking is such an important part of inventory management. Here’s what asset tracking will do for your business:
As mentioned, lost assets can cost just one company millions of dollars per year, but, luckily, instituting a loss prevention program only costs organizations a small initial investment. When tags are attached to assets, such as laptops, for instance, the proper managers can use corresponding software to quickly gain access to the history of the laptop, including its whereabouts and the information of the associates who checked it out last. Having this data is powerful for companies as it allows them to have a firmer grasp on their internal theft and asset organization plans.
Opportunities for Easy Reporting and Auditing
If you are not tracking your assets properly, how will you be able to easily access their most important attributes, like maintenance schedules, depreciation, location, and more? When asset tracking is implemented, there is an opportunity for all of these things to be reported upon immediately and accessed from anywhere using a cloud-based software system. It might seem like overkill in regards to your lesser-used assets, but it will give your operation a holistic view into the quality, location, and lifespan of your investments. Better yet, new asset tracking technologies allow firms to access all of this real-time reporting with the touch of a button, making for simpler internal audits and proof of regulatory compliance.
Extends the Life of Assets
Operations that have plenty of heavy-duty assets in their portfolios, such as vehicles, pricey automation elements, and portable devices galore know how steep those initial investments can be. Although these purchases have to be made so that the business can evolve, shrewd managers know how important it is to keep these assets running – and running well – for years to come. When an asset tracking plan is implemented, the business is able to get a crystal-clear idea of the current condition of their equipment at all times, even down to the most seemingly minuscule detail.
Asset tracking also allows companies to solidify maintenance scheduling, and report on any successes or issues right within their chosen, easy-to-access software system. With these automated maintenance, replacement, and warranty alerts, managers are able to save dollars for their business, just by keeping up with the appropriate safety and maintenance schedules.
Enables More Efficient Resource Allocation
One of the biggest struggles that a growing company can face is resource allocation; as duties and positions change, it’s very simple for work to be abandoned and schedules to fall by the wayside. It is for this reason that asset tracking is such a powerful tool for operations that are in the process of scaling. When all necessary parties are able to access and track each and every company asset at work – and even from the comfort of their own home – there is better chance that someone will catch a slip-up, or even improve upon the original plan.
In order for companies to make strategic use of their assets for years to come, they must be willing and able to adopt an asset tracking plan that will grow with the business. By making the investment in software and asset tags and labels, you are making the first important step in protecting your operation’s investments as they aid in your company’s continued road to innovation.