What Are Asset Tags & How Does It Works?

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As a contractor, you understand the importance of asset tags.

Since you work on multiple sites with multiple pieces of equipment, having information on all equipment available to you in real time is crucial.

With the changes in the construction industry and more and more technologies being added to projects, having a sound asset tagging system becomes increasingly important.

In this blog, we will go over what is an asset tag? What are its benefits, and more?

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What are Asset Tags?

Asset tags are small stickers fastened on tangible assets to help identify and manage them.

They are often used as barcodes, QR codes, RFID tags, or serial numbers.

This particular ID connects the tag to data regarding the asset, particularly in an asset-tracking system.

Equipment tags are generally placed on different classes of assets, such as equipment, machinery, company vehicles, computers and other IT assets, and office furniture.

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Why is Asset Tagging Important?

Asset tags are beneficial for effective asset tracking. The global asset tracking market size was worth $21.25 billion in 2023.

These tags help organizations monitor and manage fixed and moveable assets.

They automate documentation, track asset utilization, and schedule maintenance for fixed assets.

Asset tags aid in loss prevention and theft deterrence for moveable assets.

This is done with features like tamper-evidence that help safeguard high-value items frequently relocated within an organization.

Some main reasons why asset tags are essential include

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Theft Prevention

According to the National Equipment Register, around $300 million to $1 billion of construction equipment is stolen in the US alone.

Asset tags for equipment are vital in avoiding theft and loss since they ensure all assets are tagged.

Using tags for valuable items makes the movement of the assets easier to track and reduces the rate at which assets are stolen or taken by unauthorized persons.

Tamper-evident and RFID tags more significantly increase security in the sense they act as a deterrent to theft coupled with the factor of traceability.

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Inventory Control

Did you know? Reducing asset stockouts and overstocks can reduce company costs by 10%.

Asset tags make it easy to track inventory since they reduce the time required to record assets.

This assists organizations in keeping records of their assets intact without anything missing or misplaced in case they are lost.

Some advantages of using automated systems linked to the asset tags include preparing reports on the inventory in real-time without much physical effort.

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Real-Time Tracking

Real-time tracking is among the most significant advantages of asset tracking tags.

For instance, the organization can learn about the location and status of assets through RFID and GPS in real time.

This capability is handy when dealing with significant inventory and guarantees that resources are well utilized.

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Did you know?

Clue’s state-of-the-art asset tracking software provides real-time data and reporting capabilities, allowing you to access up-to-date information on your asset's location, status, and usage.

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Equipment Management

Equipment management has to be carried out efficiently to increase the useful life of fixed assets.

Organizations can use asset tags to keep a good maintenance and repair record for each asset.

Many organizations use different service equipment, be it mechanical or electrical.

This helps easily manage the maintenance schedules. Asset tags are also helpful in checking when the equipment needs to be repaired to avoid expensive breakdowns or time wastage due to equipment downtime.

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How Can You Benefit from Asset Tags?

Asset tagging enhances asset management by improving tracking, reducing loss, and automating documentation.

It saves costs, prevents theft with security features, and provides valuable data for better decision-making.

Additionally, it ensures regulatory compliance and boosts accountability by tracking assets to specific departments or individuals.

Here are a few benefits of asset tags to take into consideration.

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Save Resources & Time Locating Equipment

Asset tags can be a big time saver for organizing equipment, especially when misplaced or relocated.

Using asset tags, project managers can locate resources and control them effectively, solving problems that may hinder organizational operations.

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Reduce Thefts and Loss Costs

Asset tags enhance asset visibility and control, eventually requiring fewer theft and loss costs.

The extra security of tamper evidence and RFID makes it hard for some assets to be stolen or misappropriated, resulting in fewer losses and enhanced security.

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Streamline your assets with Clues

Clue’s asset tracking system seamlessly integrates with RFID, barcode, and NFC tags, providing real-time tracking, advanced reporting, and predictive maintenance. Clue enhances security, streamlines workflows, and ensures efficient asset management.

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Advanced Tracking and Reporting

Effective asset tracking and reporting are essential for organizational control and efficiency.

Advanced systems provide detailed reports on asset usage, maintenance, and depreciation.

This helps aid decision-making, budgeting, and audits.

Technologies like RFID and GPS enable real-time tracking of assets.

This is crucial for managing extensive inventories and addressing issues like theft or misplacement.

These systems simplify asset management through automated data collection and real-time updates.

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How Do You Use Asset Tags?

Using asset tags involves just a few simple steps to set up a system of readable tags to track, monitor, and get updates on your updates.

These are the steps you can follow to set up asset tags.

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Assign a Unique Identification Number

Begin by assigning each asset a unique identification number.

This number is a distinctive identifier that links the asset to its detailed records in the asset management system.

The uniqueness of this ID is crucial for accurate tracking, as it prevents confusion and ensures that each asset is distinctly recognized.

This number should be logged into your asset management software.

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Choose a Suitable Tag or Label

Various asset tags or labels are available to track different assets. You must ensure that you select the right one to fit your requirements.

The condition of the environment in which the asset is to be used, such as indoor or outdoor, high or low-temperature environment, type of asset, such as machinery, IT equipment, or furniture, and the level of security required.

Some examples of asset tags include

Barcodes
RFID tags
NFC tags
QR tags.

For instance, when the floor stocks and other movable resources are constantly transferred, RFID tags are good, but when the items are mostly fixed, barcode labels may suffice.

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Create an Asset Profile

Build up a profile of assets, which should contain rich information on every asset. This profile should include:

Purchase Date: At what point was the asset purchased?
Location: Location at present or zone to which one is posted.
Condition: Historical status of an asset, for instance, new, sound, or requires some repair work.
Maintenance History: Any documentation on servicing or repair work was to be made.
Other Relevant Details: For example, warranty information, user manual, and depreciation schedule are some of the records that organizations hold. This profile is used to oversee the performance of the asset, schedule maintenance, and ensure adherence to the code.

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Affix an Asset Tag.

Carefully attach the chosen asset tags to the physical item.

The tag should be placed in a location that is visible and accessible for scanning or reading.

Ensure the tag is securely affixed using appropriate adhesive or mounting methods to prevent it from falling off or becoming damaged.

The tag must remain readable throughout the asset's lifecycle to ensure continuous tracking and management.

Regularly inspect tags to confirm their condition and readability, replacing or repairing them as necessary to maintain effective asset tracking.

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What Are The Different Types of Asset Tags?

infographics showing types of asset tags

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Each type of asset tag offers distinct advantages and is suited to different applications based on the organization's specific needs.

Organizations can enhance asset management practices and improve operational efficiency by selecting the appropriate asset tagging technology.

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RFID Asset Tags

RFID tags are sophisticated trackers activated through Radio frequency identification technology to relay information to RFID readers.

These tags come in two primary forms: they can be grouped into passive and active.

The passive RFID tags do not have a source of power and work by merely receiving a signal from the reader, making them cheaper for most uses.

On the other hand, active RFID tags have power sources and can send signals over long distances.

RFID can increase inventory accuracy from 65% to up to 95% with its accurate readings.

These asset tags are ideal for applications where the assets are frequently relocated or if the physical space to be monitored is large.

RFID tags are suitable for environments where frequent or bulk scanning is needed, such as warehouses, distribution centers, and large-scale operations.

They can efficiently provide automated, hands-free tracking and manage large volumes of assets.

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NFC Tags

The global NFC market is estimated to grow from $15,351 million in 2019 to $54,521 million by 2028. Proving the significance of these tags.

RFID tags called NFC belong to the class of RFID tags designed for short-range data transfer.

The NFC tags can work within a close range of about a few centimeters, which is especially suitable for uses for which close and instant interaction is needed.

These technologies are used in inventory and assets in retail, stores, libraries, and events where current data is valuable for business operations.

NFC tags are easily scanned by smartphones and other NFC devices, thus giving people a fast and secure way of accessing information about assets without the need to enter complicated passwords. Most of the time, they can just tap on an NFC tag.

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Barcode Asset Tags

Barcode asset tags are among the most popular. They are made of parallel lines of machine-readable variations.

They are favored because they are cost-effective, easy to implement, and user-friendly.

They are employed in other plants, including inventory, the retail industry, and health facilities.

A barcode reader or scanner must scan barcodes.

Most readers or scanners need direct sight of the barcode, making them suitable for applications where assets are scanned individually or in small numbers.

Barcodes are more straightforward and less advanced than RFID systems, but they provide a cost-effective method of tracking and controlling assets.

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GPS Trackers

GPS (Global Positioning System) trackers provide real-time location data by leveraging satellite signals.

They are beneficial for tracking assets transported over long distances or between multiple sites.

GPS trackers are commonly used in logistics, fleet management, and field operations to monitor the location and movement of vehicles, equipment, or high-value assets.

They offer continuous tracking and can provide detailed location history, route mapping, and geofencing capabilities.

This type of tracking is essential for managing frequently moved or at-risk-of theft-assets, ensuring that organizations can monitor their whereabouts and respond promptly to any issues.

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Key Takeaways

Asset tags are pivotal in enhancing asset management across various industries, especially in dynamic environments like construction.

Asset tags streamline operations and bolster security by providing efficient tracking, improving inventory control, and facilitating real-time monitoring.

The right asset tagging solution can use RFID, NFC, barcode, or GPS technologies to save money, prevent theft, and improve operational efficiency.

Implementing a robust asset tagging system becomes crucial as the construction industry evolves with advanced technologies.

They help maintain control over valuable resources and ensure smooth project execution.

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FAQs

What are the standards for asset tagging?

ISO standards for asset management, such as ISO 55000, are some standards you should follow when tagging assets to ensure compliance.

What is an example of an asset tag number?

An asset tag number is a unique code assigned to each asset. For instance, it could look like “AT-2024-00123” or “BAR123456789”. This number helps distinguish each asset from others in a system.