Every business consists of some assets, it uses to perform its day-to-day operations. For manufacturing industries like automobiles, these can be Hand Tools, Spare Parts, Machinery, etc. On the other hand, in industries like IT solutions, assets can be the designers, their machines, etc. Regardless, there is one thing common in all these industries, and that is called asset tracking.
When it comes to business, knowing the location of all your assets is necessary to manage a profitable venture. These systems are required in almost every industry in the market. So, that’s why, today we will discuss all you need to know about asset tracking.
Asset Tracking is the process of monitoring the movement of an organization’s assets like machinery, tools, equipment, documents, etc. This is done through the integration of different types of modern tracking technologies like RFID & Barcodes, that allow users access to data regarding item movements throughout the supply chain.
These systems provide users/businesses with better oversight of their assets and allow for better control of their movement. Therefore, increasing the productivity and efficiency of the business.
What are the Functions of Asset Tracking?
Asset tracking technology has been in development for decades & has seen some remarkable innovations. These systems are very popular amongst a variety of businesses and becoming more affordable by the day. Such technology provides a host of perks to the industry, so, here we will talk about the basic functions of asset tracking.
These systems help create a connection between the virtual/written inventory and the physical inventory of any business. Some advanced systems like Active RFID completely remove the latency between the physical inventory and the database by providing tracking information in real time.
These systems prevent the inventory from stock-outs or overstocking by helping users make requisition requests at the right time. It also improves the efficiency of inventory keeping by automating the whole process, meaning the users don’t have to manually take the inventory.
(B). Optimize the Usage of Assets
Asset tracking technologies provide businesses an insight into how and where their assets are being used. This allows them to customize their operations and supply lines to optimize the productivity of daily operations. This eventually reduces the downtime significantly and allows for better resource allocation.
(C). Improved Asset Security
By allowing for real-time tracking abilities and automatic data collection, users can also use these systems to improve the security of their assets and physical inventory. By integrating technologies like RFID or EAS with the existing security system connected to a centralized system, users can be alerted every time an asset is about to exit the facility without authorization. These systems also significantly reduce stock shrinkage by, up to 75% according to some studies.
What are the Benefits of Asset Tracking for Small Businesses
These systems have a lot of applications and advantages in a variety of industries. However, they have a special place in promoting the growth of small businesses. These systems aid such businesses in optimizing their operations and improving their productivity.
(A). Efficient Day-to-Day Operations
Asset tracking systems significantly improve the daily operations of a business by reducing downtimes, optimizing resource allocation, automation, etc. These systems can track your assets anywhere within the premises of the facility. They not only track movement but also keep track of important information like service & maintenance records, usage time, etc. Thus, allowing businesses to perform time preventive service on tools & equipment.
(B). Improved Accuracy
An essential part of running a business is to keep records of the physical inventory and items. However, this process can be very time-consuming and is always prone to errors. With the increase in the volume of items, so does the chances of errors in keeping the records. With the help of asset-tracking technologies, businesses can reduce or even prevent this issue completely. These systems automate inventory management and record keeping, making it more accurate and faster. This allows users to make better decisions regarding business operations, create accurate financial records & provide transparency.
(C). Customer Service Optimization
These systems allow employees to retrieve essential tools and equipment by providing tracking information. This allows the employees to provide on-time service to the customers, creating a satisfactory and positive customer experience.
(D). Cost Reduction
These systems provide access to data regarding location tracking, service record tracking, maintenance schedules, usage, etc. This allows businesses to prevent issues like excessive wear & tear, theft, stock shrinkage, breakdowns, etc. In the long run, such preventative practices can end up saving a lot of costs for a business.
(E). Compatible with Increasing Scale
The biggest benefit of asset tracking systems like RFID and Barcodes is their ability to remain compatible and efficient with the growth of a business. This ensures that the users can keep getting accurate and effective insight into the daily operations of their business, even with the growing size of the organization and the growing complexity of operations.
Conclusion
Asset Tracking is an essential aspect of any business, these systems provide users with a clear oversight and customer transparency in a business’s operations. As the technology becomes more advanced, users get access to more accurate and proficient means of asset tracking.
Technologies like RFID, provide excellent automated asset-tracking capabilities to users. Such systems allow businesses to optimize their operations and improve productivity and efficiency. Such systems are suitable for application for almost all sizes of industries.
Frequently Asked Questions
Q1. What is asset tracking in logistics?
In logistics operations, asset tracking refers to having information and monitoring capabilities over the movement of assets throughout the facility or the supply chain.
Q2. How does asset tracking work?
These systems work by using sensors or unique codes like AIDC technologies (RFID, Barcodes, EAS) to identify and collect data on different items. These systems are connected to the centralized database of a facility, allowing users to have access to said information at all times.
Q3. What are some asset tracking examples?
Some common types of asset tracking systems are Radio Frequency Identification (RFID), Barcodes, Near-Field Communication (NFC), Bluetooth Low-Energy (BLE), Internet of Things (IoT), etc.
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