What are the Functionalities and Benefits of an Asset Tag?

We all have seen a barcode on products of daily use such as toothpaste, provision packets, grocery items, etc. These codes help in keeping the owner or manufacturer up to date with the product's information.

We shall discuss about the functionalities of asset tag in this blog.

What Is An Asset Tag?

An asset tag is a label or sticker that identifies equipment or asset using a unique serial number (or barcode). An asset tag is generally made of a material like anodized aluminum or laminated polyester. Asset tags may carry the company's logo and information on the equipment it is affixed upon.

Barcodes are used on asset tags to make the process of data entry quick and to reduce field entry errors. The function of asset tags is to fit in size to every small, mobile, and valuable asset. Asset tags are thus made smaller, more tamper-resistant, and are integrated with asset tracking software as well.

Also Read: Everything You Need to Know About RFID Asset Tracking

What Are the Major Functions of an Asset Tag?

Assets are the core of any business. They are prone to risks and represent a definite cost and will make a material difference if damage, lost or theft occurs. They therefore need to be tracked.

Below are some areas that are recognized as major functionalities of an asset tag:

Track Equipment

Where are the assets?

Asset Tags are used to track assets even as they move from site to site, from a loading location to an eventual or designated destination. The asset tag must stay attached with the asset for its lifetime. The tags are used for check-in and check-out actions to define the movement of the asset.

Inventory Control

What assets are owned?

Asset tags are the critical link to perform periodic audits of the asset list. They determine the value of the assets over their lifecycle. Therefore, it is important to know exactly what the assets and what their worth is.

Prevent Theft

Is asset return possible?

It should be easy for the staff to return assets such as laptops as they valuable and ensure business continuity. This system will prevent accidental misappropriation of assets by any individual or department.

MRO Information

What and when maintenance needs to be done?

Scanning of a barcode (asset tag) can quickly bring the user to a database where all information regarding repair instructions and maintenance schedules can be viewed.

What Is the Purpose of an Asset Tagging System?

Asset tagging system allows companies to auto-assign a unique identification number to each of their assets. These tags are printed with barcodes, QR codes or they can be of high defined technology such as RFID, NFC, GPS, IoT, BLE.

Asset tags eliminate the need for manual data entry. They enable accuracy and efficiency in inventory tracking and ensure streamlined documentation of activities such as maintenance and repairs.

Asset tagging system helps in tracking each asset's location, maintenance history, usage, and other details. This simplifies record-keeping and streamlines reporting for accounting and tax purposes. Proper use of correct data makes it easy for a company to calculate depreciation for equipment and assets.

Some industries have regulations for specific types of assets that are to be tagged, the materials required to tag the assets and other specific asset identification requirements.

Also Read: Barcodes/QR codes Vs RFID Tags For Asset Tracking

For instance, defense industry requires Unique Identification (UID) asset tags for their defense applications known as UID labels. These have to meet the regulations with the ability to withstand harsh environmental conditions and remain readable throughout the lifespan of the asset.

In the defense sector, asset tagging systems helps track military property throughout the assets lifecycle, from its manufacturing to distribution and final disposal.

The information of individual assets allows companies across all industries to make smarter, data-driven and financially more effective decisions.

Moreover, it assists with information of repairing a piece of equipment that is near the end of its expected usable lifespan.

As each asset is affixed with a unique identifier (UID), you can know its location history in a documented form. Asset tagging also helps prevent thefts and loss. Special asset tags such as tamper-evident barcode labels add that additional hindrance to discourage theft.

What Are the Benefits of Asset Tags?

All asset data is extremely important when it comes to audits and compliance. Asset tags help in gathering information about all the important or not-so-important assets.

It may also be possible that assets considered unimportant may actually turn out to be important and can be used or in another scenario. However, if an asset is not needed, it should be replaced in time.

Here are some benefits of asset tracking with asset tags that will help you gain operational efficacy:

Real-time Management

Asset management software comprises asset tracking. It is a web-based system for recording asset movements and providing up-to-date data. Asset tagging makes it simplified for defined information and eliminates duplication in the system.

Opportunities to Upgrade

A cloud-based system enables upgrading the database as a business expands. A robust asset tracking system will identify demand and disposal criteria and prepare the organization for future growth.

Low Administrative Costs

An automated technique for asset tracking decreases the amount of time spent on locating equipment. This increases both the organizational efficiency as well as staff productivity.

An efficient asset tracking also helps attain economies of scale and reduce financial losses by detecting malpractices and solving all asset tracking problems. Asset management is the best way to deal with loopholes and put in place ways to overcome them.

What Are Some Common Mistakes to Avoid During Asset Tagging?

When you track your assets, you should get a clear picture of all your assets in the business, from their acquisition time until their disposal.

To make your strategy work, here are some common mistakes that should be avoided:

• Inaccurate inventory.
• Asset descriptions that lack information such as manufacturer, model, serial number no. and so on.
• Asset tags that lack information that can be manually read and used in situations when asset databases cannot be accessed.
• Unaccounted asset movements for acquisitions, transfers, and disposal.

Information is the base for any asset management system. Every company needs to take a complete tour of its assets, record all asset information, and attach tags that can be read by both scanners and human eyes.

Moreover, strict controls are required for asset tracking as they are acquired, moved, maintained, and disposed of. In the absence of such controls, information can be misleading and any decisions taken would be coming out of incomplete information.

Choosing The Right Asset Tag

Choice of the right asset tag with amazing functionalities are very important to track your assets accurately. Indoor assets like computers, printers, and other items may not need durable asset tags. However, outdoor equipment will need asset tags with high durability and tamper-proof technology.

Also Read: Major Challenges for Manufacturing Industry & How Asset Management Assist?

Conclusion

These are the best asset tag functionalities and benefits. Asset Infinity provides you with the right solution for asset tracking management software along with the best of asset tagging technology as per business requirements.