Asset Management is an essential operation in any kind of business. Depending on the size of the operation, users may choose different technologies. One particularly popular system that is popular amongst all types of industries, is barcoding. So, let’s discuss all you need to know about Asset Management using Barcodes.
What is Asset Management?
Every business requires the presence of assets to conduct its day-to-day operations. These assets can be anything from machinery to tools & equipment. In order to maintain and streamlined and effective operations, businesses must be able to keep an eye on the assets & allocate them properly.
The process of tracking and assigning assets within a business’s operations is known as asset management. There are many methods of doing this, but today we will discuss about using barcodes for the purposes of asset management.
How are Barcodes Used in Asset Management?
Barcodes are a class of AIDC technology that stores data in a visual form. A barcode is capable of storing important information in binary format, using bars/cells within a field/data matrix respectively. Businesses can apply barcodes on their assets to enable identification and tracking of their movement throughout the organization.
There are three basic components one requires to conduct barcoding operations, namely – Barcode Labels, Scanners, and Barcode Asset Tracking Software. The labels in themselves can be mass-produced using an industrial printer or requisitioning through an AIDC provider like EnCStore.com. The scanners are needed to be placed at every checkpoint along with employees to conduct the scanning operations. With the help of the tracking software, you can connect your barcoding operations to the centralized database & the virtual inventory.
Benefits of Using AIDC Systems for Asset Management
AIDC technologies like barcoding, provide businesses with a variety of benefits, allowing them to have a significantly greater cost-to-return ratio. So, let’s check out some of the benefits of using barcodes for Asset management operations.
(A). Optimized Efficiency
Barcodes allow the employees to easily scan and identify products using the scanner. In addition to that, asset management software is usually centralized and compatible with multiple types of input hardware, like barcodes. With the help of this, you can connect your scanners to a system using this software. This allows businesses to significantly optimize the efficiency of these operations by largely automating them.
(B). Transparency
With real-time data collection and monitoring capabilities, barcodes allow businesses to have far more transparency in their operations. As the identification & tracking data of all the assets are readily available in the centralized hub. This not only builds goodwill but also provides visibility into the inventory and movement of items.
(C). Improved KPI Accuracy
A KPI or Key Performance Indicator are factors that allow users to measure the performance of a business’s operations over the course of time. These can include – Order Cycle Times, Inventory Accuracy, On-Time Shipment, Inventory Turnover, Carrying Costs, and Order Filling Accuracy. With the help of barcode integration users can vastly improve the accuracy of these metrics, providing you a better picture of your business.
(D). Waste Reduction
By providing accurate tracking capabilities, barcoding stops users from waste-generating activities like loss of raw materials, procuring duplicate assets, managing inventory, and custom requisition orders. All of this reduces any waste creation, as the business only procures resources & assets that it needs.
(E). Loss Prevention
Lastly, one of the biggest benefits of using an AIDC system is the security advantage it provides. By placing scanners at vulnerable points and exits, businesses can use barcodes to prevent assets from leaving the premises.
Frequently Asked Questions
Q1. What is the best barcode for asset tagging?
There are many types of barcodes available for use, these use different algorithms to store data. The best type of codes for asset tagging operations are Code-3, and Code-128.
Q2. How is a barcode used in inventory management?
These little labels allow users to keep track of and register the position of each item in the physical inventory in the database. Improving the accuracy of the virtual inventory and the database vastly.
Q3. Which is the advantage of using barcodes?
The biggest advantages of using barcodes are their accuracy, ease of use, and cost. Barcodes provide far greater accuracy when it comes to data collection & tracking. It is also very easy to use and does not require a lot of training.
On the other hand, it is far cheaper than other advanced AIDC technologies like RFID.
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