What is Barcode Asset Tracking Software & How Does it Work?

Did you know firms lost almost $51.2 million worth of heavy equipment, trucks, and machinery between 2004 and 2014? This number keeps increasing over time.

To remedy this situation, barcode asset tracking software was created to track assets and prevent losses and fraud.

Delays, misplaced assets, or errors in tracking can lead to significant financial losses and project setbacks. Barcode asset tracking software is a powerful tool to streamline this process.

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What is Barcode Asset Tracking?

Barcode asset tracking is a method of monitoring and managing physical assets using barcodes. A barcode is a machine-readable data format displayed using parallel lines and spaces with varying widths.

A barcode asset tracking software allows project managers to efficiently record and retrieve asset information, which is crucial in environments like construction sites.

Barcode asset tracking helps keep tabs on machinery, tools, and other essential equipment in construction.

This ensures that everything is accounted for and in the right place. It offers a straightforward yet effective solution for managing the vast number of assets that construction companies use daily.

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How Does Barcode Asset Tracking Work?

implementing a barcode tracking system includes the same four steps, whether implementing a barcode asset tracking software in construction or looking into different industries like travel, shopping, and more.

Here is a look at how the barcode asset tracking system works.

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Generate barcodes

The central part of managing inventory and tracing assets is creating a solid foundation for barcodes. Barcodes consist of various bars and spaces that represent numbers and letters. They are very similar to the dots and dashes of morse code.

When implementing barcode tracking, you must know about the two types of barcodes: 1D and 2D. 1D barcodes are known as linear barcodes and code up to 100 characters.

They are usually used in retail. Meanwhile, 2D barcodes, which store up to 2000 characters, are often used as QR codes.

Businesses can generate barcodes for asset tracking by purchasing them from a distributor or printing them in-house.

This flexibility makes barcode asset tracking especially attractive to small businesses with limited assets.

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Reading the barcodes

Once barcodes are generated and attached to different assets. The next step is to read them. This is usually done using barcode scanners and mobile devices.

When a barcode is scanned, the device captures its encoded information and sends it to a central database, where all the asset-related data is stored.

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Managing the barcode information

The final step involves managing the information captured by the barcode scanners. This is done through barcode asset tracking software that integrates with the scanning devices.

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Software like Clue provides a user-friendly interface to track and update real-time asset information. It lets you view asset locations, check maintenance schedules, and generate reports, helping you record your assets comprehensively.

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What Are The Benefits And Advantages Of Barcode Asset Tracking?

Barcode software provides users with various benefits ranging from increased accuracy to minimizing human errors. There is also the bonus of reducing asset tracking costs through traditional means.

Some of the main benefits of using barcode asset tracking software include

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Improved speed and accuracy.

One of the main advantages of barcode asset tracking is improved speed and accuracy. Manual tracking methods, such as logging asset information by hand or using spreadsheets, are prone to errors and can be time-consuming. 

Barcode tracking automates the process, reducing the time spent on data entry and minimizing human error.

This speed and accuracy are precious on construction sites where quick access to asset information is crucial.

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Minimizes human errors

Human error is inevitable in manual processes, but barcode asset tracking significantly reduces this risk.

Since barcodes are read electronically, the likelihood of errors due to incorrect data entry or mislabeling is greatly diminished.

This leads to more reliable asset records and ensures that your equipment management practices are based on accurate information.

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Reduces asset tracking costs

Barcode asset tracking can help reduce costs associated with asset management. By streamlining the tracking process and minimizing errors, you can avoid costly mistakes such as over-ordering equipment or losing valuable tools. 

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Easy to use and manage

Another significant advantage of barcode asset tracking is its ease of use and management. Barcode scanners are user-friendly and require minimal training, making them accessible to all staff. 

Clue is the best asset-tracking software, and it provides intuitive interfaces that simplify updating and retrieving asset information.

This ease of use ensures that your team can quickly adapt to the new system and benefit from its capabilities.

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How Does Barcode Asset Tracking Compare To Other Asset-Tracking Software?

When implementing an asset tracking system, you must consider how barcode asset tracking software compares with other systems, such as RFID and QR Codes.

We have chosen the two most popular asset-tracking systems, usually used in place of or alongside barcode asset tracking software.

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Barcode vs. RFID asset tracking

Before the creation of RFID technology, barcodes were a go-to for asset tracking due to their accuracy, cost-effectiveness, and ease of use.

However, RFID (Radio Frequency Identification) has introduced new possibilities for asset management, ranging from advanced ranges to scanning speeds that are higher than previously.

Here is a side-by-side comparison of both barcode asset tracking software and RFID asset tracking to give you an idea of their similarities and differences.

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Barcode vs. QR Code asset tracking

Regarding asset tracking, both barcodes and QR codes offer cost-effective, reliable, and user-friendly solutions.

However, each has distinct features that make one more suitable than the other, depending on your specific needs.

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How Do You Decide If Barcode Asset Tracking Software Is Right For You?

Deciding if barcode asset tracking software is right for you involves evaluating several factors related to your business needs and operations.

Here are some key considerations to help you determine if barcode asset tracking is suitable:

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Determine Company Assets

The volume of assets under your management should be evaluated to determine whether barcode tracking can streamline the process.

In large-scale businesses that have a lot of stock or possess multiple items, barcodes can make work easier by automating data input while reducing human entry errors.

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Categorize Assets

Consider the types of assets you track and whether barcodes are suitable.

Barcodes perform best on immobile materials, but other technologies, such as radio frequency identification (RFID), might be required if your assets are constantly moving or need more sophisticated monitoring.

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Determine Current Tracking Issues

Examine present tracking problems and see if barcode tracking can solve them.

Manual data entry challenges, frequent loss of items, and poor inventory records will be solved with barcodes because they provide a more organized and automated approach.

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Form a Budget

Consider how much you have set aside for initial setup costs and regular maintenance.

The cost-in-use aspect of barcode systems is generally low, considering that they mainly involve purchasing scanners and labels.

However, another additional factor to consider is the total cost of ownership, including occasional label replacement and possible software updates.

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Look at the Current System

Determine the compatibility of your current system, such as inventory management or ERP software, with barcode tracking systems. One benefit of seamless collaboration is improved operational efficiency.

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Final Thoughts

Barcode asset tracking software provides a valuable solution for managing construction equipment efficiently.

Its benefits, improved speed and accuracy, reduced human errors, lower costs, and ease of use make it a practical choice for many construction firms. 

Construction equipment solutions like Clue's equipment management software can further enhance the benefits of barcode tracking, offering a comprehensive approach to managing your construction assets.

By adopting barcode asset tracking, you can ensure that your equipment is always accounted for, helping you keep your projects on track and within budget.

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FAQs

How does barcode asset tracking software work?

Each asset receives a unique barcode incorporated with specific information about it. To track the asset, a scanner or mobile device scans the barcode. The scanner reads the barcode and sends the data in binary code to a computer. This data is then decoded by the computer and kept in an Asset Tracking Software database.

How does an asset tracking system work?

Asset tracking is a way of keeping up with physical elements of organizations like buildings and lorries, mainly achieved through either barcode scanning on tags attached to them or GPS/RFID tags that transmit their geographical coordinates.

How do barcodes work?

The barcode scanning system operates on the principle that different light levels are reflected from other parts of the bar code. This light is converted into several digits or data streams. This information is needed to access related records stored in digital format on a personal computer.

What is the purpose of asset tags and barcodes?

Usually, an asset tag consists of a barcode, QR code, RFID tag, or serial number; sometimes, both may feature distinct identification forms for each item being tracked under such a regime. The aim behind tagging assets is to help organizations effectively manage and track their investments over the entire period they exist within the company.

How do I create a barcode tracking system?

You can set up a barcode asset tracking software/system following these steps.

• Define SKUs and Variants: List all items and their variations.
• Choose Software: Select inventory management software with barcode support.
• Define Barcodes: Assign unique barcodes to each SKU and variant.
• Create Barcodes: Generate and print the barcodes.
• Update System: Enter barcodes into your inventory management system.
• Implement Barcodes: Attach barcodes to items or storage locations.