How To Use Asset Tags for Effective Asset Tracking

Asset tags are essential tools for managing and tracking physical assets, providing a way to label, identify, and monitor equipment, inventory, and valuable property. Asset tags typically contain unique identifiers, such as barcodes, QR codes, or serial numbers, and are used in conjunction with asset management software to track asset location, usage, maintenance, and ownership. Implementing an effective asset tagging system can streamline inventory management, reduce loss or theft, improve accountability, and optimize resource utilization.

This guide provides a comprehensive, step-by-step approach to using asset tags for effective asset tracking, from selecting the right tags to implementing asset tracking practices.

Benefits of Using Asset Tags for Tracking

• Enhanced Inventory Management: Simplifies locating and tracking assets, especially in large organizations or across multiple locations.
• Reduced Loss and Theft: Unique identifiers on assets deter theft and make it easier to recover missing items.
• Improved Maintenance and Lifecycle Management: Asset tags allow for tracking maintenance schedules, usage history, and warranty details.
• Cost Savings: Streamlines the inventory process and reduces time and labor costs associated with manual asset management.
• Compliance and Auditing: Facilitates regulatory compliance by maintaining a complete history of asset location, usage, and maintenance.

Steps to Use Asset Tags for Effective Asset Tracking

Step 1: Identify Assets to Be Tagged and Tracked

1. Determine Asset Types:
   • Identify the types of assets you need to tag, such as IT equipment, machinery, vehicles, furniture, or inventory items.
2. Classify Assets Based on Value and Importance:
   • Prioritize tagging high-value and critical assets. This includes items that are costly, frequently moved, or require regular maintenance.
3. Create Asset Categories:
   • Organize assets into categories (e.g., IT equipment, office furniture, tools) to simplify tracking and reporting. Categorization also helps in selecting tag types and managing each asset’s lifecycle.

Step 2: Choose the Right Type of Asset Tag

Selecting the right type of asset tag is crucial for durability and ease of tracking. Consider factors like the environment, material, and readability.

1. Barcode Tags:
   • Purpose: Ideal for basic tracking needs, barcode tags are cost-effective and work well with barcode scanners.
   • Best For: Office equipment, inventory, and assets that are stored indoors.
2. QR Code Tags:
   • Purpose: QR codes store more data than barcodes and are easily scannable by smartphones. They can link to online databases with detailed asset information.
   • Best For: IT equipment, electronics, and assets requiring quick access to information.
3. RFID Tags:
   • Purpose: Radio Frequency Identification (RFID) tags allow for remote tracking and do not require line-of-sight scanning.
   • Best For: High-value items, equipment in large warehouses, or assets frequently moved across locations.
4. Durable Tags:
   • Purpose: Made from rugged materials like metal or polyester, durable tags withstand harsh environments, including exposure to moisture, heat, and chemicals.
   • Best For: Industrial equipment, machinery, outdoor assets, and tools used in challenging environments.
5. Tamper-Evident Tags:
   • Purpose: These tags show evidence of tampering, which helps prevent unauthorized removal.
   • Best For: Sensitive or high-security assets, such as medical devices, servers, or high-value electronics.

Step 3: Develop a Unique Asset Tagging System

1. Generate Unique Asset IDs:
   • Create a unique identifier for each asset. Use a consistent format, such as a combination of letters and numbers that indicate asset type, department, and a unique ID number (e.g., IT-LAP-001 for laptops).
2. Standardize Tag Information:
   • Include essential information on each tag, such as asset name, unique ID, serial number, and contact information. QR codes or barcodes can link to a digital record with additional details.
3. Implement a Tagging Format:
   • Define a tagging format that matches the organization’s structure. For example, use prefixes for departments (HR, IT, MKT) or asset type codes (LAP for laptops, PRN for printers).

Step 4: Attach Asset Tags to Assets

1. Choose the Tag Location:
   • Attach tags in visible, accessible areas that won’t interfere with the asset’s functionality. For example, place tags on the back or underside of computers, or on a flat, non-moving part of machinery.
2. Ensure Proper Adhesion:
   • Make sure the tags are securely adhered to the asset. For high-touch surfaces or rugged environments, consider using adhesive that withstands wear and tear, or select tags that can be riveted or bolted.
3. Test for Durability:
   • Verify that tags remain legible and securely attached under typical usage conditions. This step is particularly important for outdoor or industrial equipment where tags are exposed to extreme conditions.

Step 5: Use Asset Management Software to Track Assets

1. Select Asset Management Software:
   • Choose software that integrates with your asset tags (barcode, QR code, RFID) and offers features for tracking, reporting, and auditing. Popular options include Asset Panda, Snipe-IT, and Zoho Asset Management.
2. Input Asset Information:
   • Record each asset’s details in the asset management system, including the unique ID, description, location, purchase date, warranty details, and maintenance history.
3. Link Asset Tags to Digital Records:
   • Associate each asset tag (barcode, QR code, RFID) with the asset’s digital record in the software. This allows you to access asset information by scanning the tag.
4. Configure Access Controls:
   • Set up user permissions in the software to control access to asset records, especially for high-value or sensitive items. Assign access based on department roles and responsibilities.

Step 6: Implement Regular Scanning and Inventory Audits

1. Conduct Routine Scans:
   • Use barcode scanners, RFID readers, or mobile devices with QR code functionality to scan asset tags and update their status and location.
2. Schedule Inventory Audits:
   • Conduct regular inventory audits to verify the physical presence, condition, and location of each asset. Monthly or quarterly audits help maintain accurate records and ensure accountability.
3. Update Software in Real-Time:
   • Ensure that any changes in asset location, status, or ownership are recorded in real time. This keeps asset data accurate and up-to-date for reporting and auditing.

Step 7: Monitor Asset Lifecycle and Maintenance

1. Set Up Maintenance Schedules:
   • Use the asset management software to schedule routine maintenance for each asset. Link maintenance schedules to asset tags to get notifications when maintenance is due.
2. Track Asset Usage and Condition:
   • Monitor usage data to identify heavily used assets that may require more frequent maintenance or replacement. Update asset records to reflect their current condition.
3. Manage Asset Disposal and Replacement:
   • Record the disposal or transfer of assets in the system when assets reach the end of their lifecycle. Maintain documentation for regulatory compliance, and update records to reflect asset replacements.

Step 8: Generate Reports and Analyze Asset Data

1. Generate Asset Reports:
   • Use the asset management software to create reports on asset location, utilization, maintenance history, and depreciation.
2. Analyze Asset Utilization:
   • Identify underutilized assets that may be redeployed or sold, as well as heavily used assets that may need replacement sooner.
3. Make Data-Driven Decisions:
   • Use asset data to make informed decisions about budgeting, resource allocation, and procurement. Analyzing asset data can reveal insights for optimizing asset usage and reducing costs.

Best Practices for Effective Asset Tracking with Asset Tags

1. Standardize Tagging and Data Entry: Use consistent tagging formats and data entry standards to ensure data accuracy and make it easier to search and report on assets.
2. Implement Strong Access Controls: Limit access to sensitive asset data and ensure that only authorized personnel can update asset records.
3. Conduct Regular Training: Train employees on the asset tracking process, including scanning, data entry, and maintenance protocols, to promote accountability and ensure compliance.
4. Use Alerts for Maintenance and Audits: Set alerts in the asset management software for maintenance tasks, audits, or when an asset reaches its end-of-life to prevent oversights.
5. Integrate with Financial and Maintenance Systems: Integrate asset management software with financial and maintenance systems to streamline workflows, improve visibility, and maintain accurate records.

Frequently Asked Questions Related to Using Asset Tags for Effective Asset Tracking