Asset Tagging: Benefits, Examples, and Best Practices

What is an asset tag? How can it be helpful to your project? If you ask the same question, you are in the right place.

Asset tagging has proven time and time again to be an effective way of managing assets.

The system provides quick scanning, streamlining assets, and all relevant information about the assets.

If you want to learn more about asset tags for equipment, let’s start with the basics.

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What is Asset Tagging?

Asset tagging refers to a process in which information tags or labels are placed on assets.

This is done to identify these resources, including their status in time and maintenance records. 

To achieve asset coverage, these tags can be affixed simultaneously to fixed and strictly mobile assets for different sites and warehouses.

Asset tagging generates complex data tracking opportunities, which offer more tracking opportunities when integrated with computerized systems such as asset tracking software.

The global market for asset tracking is forecast to rise to $36.3 billion by 2025. Thus, various organizations need to adopt the concept of asset tracking.

Using reliable, cloud-based tools and tracking technology enables a business firm to protect assets. 

This can be done by preventing misplacing and improving maintenance, management and reliability. 

This is especially beneficial in sectors as diverse as construction, in which tracking critical assets is vital.

By labeling assets, businesses can collect and digitize a wealth of information, including:

• Real-time location
• Users
• Purchase history
• Maintenance schedules
• Depreciation value

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What is the Purpose of Asset Tagging?

Asset tagging is done to improve the functionality of asset management.

It is an organized approach to identifying, tracking, and controlling the potential assets at any phase in their life cycle. 

Here’s a closer look at how asset tagging serves these objectives

• Streamlined Inventory Processes: The asset tagging process entails labeling each asset to make it easier to track an individual item. This enables project managers to update the records of inventories within the shortest time possible to conduct inventories and audit checks. 
• Improved Asset Management: Asset tags allow organizations to obtain real-time information on assets' locations, status, and usage, making appropriate decisions easier. They are also helpful in documenting asset management's different phases, including acquisition, use, and disposal.
• Enhanced Control and Accountability: They enable the more effective tracking and management of assets. Once each asset is tagged, managers can easily identify its operators, the last time it was serviced, and its current state.
• Prevention of Loss and Theft: One primary reason for asset tagging is to reduce the number of lost or stolen assets. Tags can be provided in real-time and might contain warnings whenever an asset has been removed without permission or stolen.
• Data Collection and Analysis: Asset tagging helps gather helpful information, including purchasing and maintenance time and asset depreciation. The organization can store this data in an online central digital asset ledger and use it to monitor asset performance.

Clue offers comprehensive asset-tracking solutions for its users. These solutions allow contractors to track assets and monitor performance effectively through detailed analytics and reporting.

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What are the Benefits of Asset Tagging?

With the rise in smart technologies, like 5G, which has grown to approximately 455 million worldwide connections.

The need for asset tagging rises, and contractors must be more vigilant about their equipment.

If you are still not convinced of the importance of asset tagging. Let’s check out some of its benefits for changing your mind.

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Efficient Inventory Tracking

Asset tagging is an automated way of tracking assets and is known to transform inventory management. 

Every asset is tagged in a particular manner so that one can get essential details quickly by scanning it. This capability allows for:

• Real-Time Updates: Scanning asset tags helps update inventory records instantly and concerning changes in the situation, location, or physical status of assets. This real-time visibility makes the information relating to inventory as current as possible.
• Movement Monitoring: Tags help organizations monitor the movement of assets from one location to another or even within the same location. This monitoring is essential for tracking assets in big structures or stored at several locations and checking which assets are in their proper place.
• Reduced Errors: When documents are captured through scanning, the chances of errors in the data entry process are avoided.

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Asset Identification

The primary function of asset tags is to facilitate the identification and tracking of assets more effectively, especially in large settings where so many assets are in use. The advantages include:

• Faster Search: Asset tags, scanning devices, or even mobile applications can be used to locate an item without having to spend a lot of time looking for it physically. This efficiency is most significantly felt in organizations with huge assets since the volume may be daunting.
• Improved Accuracy: To identify the details of each item, overlying tags are assigned, which contain informatics like its type, condition as well as location. This allows for correct identification, prevents confusion, and guarantees that the assets are used appropriately. 

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Unique Identification

The major disadvantage of asset tagging is that it will involve assigning an identification number to each asset. This unique ID serves several purposes:

• Avoiding Duplication: They also ensure that no two assets are recorded in the same way to avoid confusion, meaning each asset is well recognized and easily managed. This is important, especially in ensuring a proper record of stocks and preventing confusion about stocks.
• Detailed Record-Keeping: The ID number assigned to every asset proves helpful when making records related to purchase information, maintenance records, and usage records. This detailed account assists in sustaining the asset through its business life cycle.
• Facilitating Tracking: A unique ID can help identify individual assets, mainly if they belong to a specific category or group. It is helpful in monitoring and evaluating the results in detail. 

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Theft and Loss Control

This process is fundamental, especially in preventing theft and loss of items through asset tagging.

Here’s how it helps:

• Enhanced Security:  Asset tags serve as markers that offer real-time tracking, especially of the status and location of assets, making it easier to keep track constantly. This can discourage theft or a desire to move it somewhere else.
• Alerts and Notifications: Some systems used in asset tagging carry alarms that sound when an asset is shifted without the appropriate paperwork or goes to a particular zone it is not supposed to. These alerts cause an investigation of the misplaced or stolen assets within the shortest time possible.
• Audit Trails: Asset tags help keep a detailed account of the flow and usage of assets. Such audit trails help track theft or loss by pointing to the last time the item was seen or used. 

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Best Practices for Asset Tagging

Adopting tagging practices that optimize asset management is essential when implementing asset tags.

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Here is an in-depth look at some asset tagging best practices.

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Select the Right Tagging System

Selecting the proper tagging system is the key to successful asset management as it defines the main conditions. Here’s what to consider:

• Environmental Factors: Assess the conditions in which the tags will be applied or, in other words, the context in which the tags will be placed. When using asset tags that come into direct contact with harsh conditions such as heat or cold, moisture or abrasion, consider getting high-tensile-strength tags made from weatherproof materials. 
• Type of Assets: Depending on the type of asset, one may need a different kind of tagging solution. For instance, small tools may require barcode labels, in contrast to large equipment that will require the usage of RFID tags with enhanced tracking capability. You should choose the right tag type based on the size of the asset, the material of which it is made, and its mobility.

• Level of Detail Required: Consider how much information must be archived and how frequently that information will be required in the future. If additional information like the history of maintenance, warranty, and usage logs is needed for asset information, then use tags with ample storage potential or information links.
• Integration with Systems: Ensure the tagging system fits your current asset tracking or management system. Integration with your asset management system ensures that identified data from the tags is adequately collected and used. 

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Create Standardized Procedures

Establishing clear, standardized procedures for asset tagging ensures consistency and accuracy across your organization.

• Tag Placement Guidelines: Create policies on how and where tags are to be affixed in assets so that they can be easily seen and will last long. Scanning the placement should be possible and not hampering the asset's functioning and operations.
• Data Entry Protocols: Develop procedures for getting data into your management system and for modifying the data when needed. This consists of defining who enters data, the format of check consistency, and how updates need to be done.
• Tagging Workflow: Create sequential instructions on how to tag new assets, another on how to register the tagged assets, and the verification procedures. This workflow needs to be recorded and simple to follow by anyone in the company involved in this process.
• Regular Audits: It is worth arranging routine checks on the files, as the program requires approval and validation of some recorded assets and evaluation of the efficiency of the tagging processes. This makes it easier to point out strengths or weaknesses, problem areas, or procedural changes that require attention as soon as possible. 

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Regularly Assess and Update Conditions

Maintaining the integrity and functionality of asset tags is essential for effective asset management: 

• Periodic Inspections: It is recommended that asset tags be systematically checked for signs of wear, most especially in cases where tags may end up under conditions likely to cause physical or environmental stress. Look for defects that might impact the readability of the text.
• Update or Replace Tags: Replacing tags from time to time is essential to maintaining the integrity of asset tracking since the tags may wear out and become difficult to read. It is also important to use extra tags and/or backup tags because they come in handy frequently in case of breakages.
• Software Updates: It’s also best to keep the asset management software up-to-date to acquire the latest tag compatibility and explore opportunities to fine-tune tracking and reporting.
• Tag Maintenance: Discuss how to clean or fix the tags or set cleaning protocols when necessary. For example, if the labels are to be attached to a dirty surface or if they are colored and blurred, ensure that the action required to clean the labels or even replace them if they cause the blurring is well understood. 

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Train Employees

Practical training ensures that all employees involved in asset management understand and adhere to tagging procedures:

• Comprehensive Training Programs: Create training that includes all the processes associated with the asset tagging procedure, how to do it, how to handle a tag scanner, and how to enter the right data.
• Ongoing Education: Employees should receive continued education or training regarding procedures, technologies, or Systems changes. Continuing education also assists in improving standards and adherence to set laws.
• Clear Documentation: Ensure the tagging procedures, guidelines, and other relevant information are documented and easily accessible to the employees. This reference material can be used to establish a standard and help deal with any problems or questions that may crop up.
• Hands-On Practice: Organize training sessions focused on hands-on exercises, such as testing the tag and scanning the asset. This makes the learning more experiential and increases the employees' confidence in the procedures involved. 

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Let Me Summarize

Asset tagging is essential for efficient inventory management, asset identification, and theft control.

Implementing asset tagging best practices can significantly improve asset tracking and management.

Regular updates, standardized procedures, and employee training are critical to the success of an asset tagging system.

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FAQs

What are the risks of not asset tagging?

If asset tagging is not conducted in organizations, then there is a likelihood of the following:

• Inaccurate inventory data
• High levels of theft and loss
• Poor management of assets 

It also means that an inadequate systematic approach can lead to mistakes in audits and maintenance activities. 

What are the standards for asset tagging?

Guidelines for asset tagging are relatively simple. The primary standard uses universal formats and technologies such as barcodes, QR codes, or RFID tags. The tag should withstand environmental conditions for a long time, convey a visible and clear message, and be compatible with guidelines applicable in the particular industrial sector. 

What does asset verification mean?

Asset Verification typically refers to confirming assets' existence, condition, and ownership. This can include physical items like machinery, vehicles, real estate, and digital assets. Asset verification ensures that all listed assets are accurately recorded and in good condition, essential for financial reporting, insurance, and operational management.

What is asset geotagging?

Asset Geotagging involves attaching geographical information to assets. This means recording the location of an asset using GPS coordinates or other location data. For example, in a fleet management system, geotagging can help track the exact location of vehicles. 

Inventory management can help monitor where assets are physically located within a facility or across multiple sites. This process enhances asset management by providing real-time location data, improving logistics, and increasing security and accountability.