What is the Importance of Asset Tracking in CMMS?

Computerized Maintenance Management System

Asset tracking is an important feature for an organization to pull out maximum returns from their investments. Asset tracking provides a clear vision and data to strategically optimize the owned assets and equipment.

As technology has leapfrogged, organizations nowadays use computerized methods and techniques to track their assets and equipment. Keeping records through older methods like pen and paper or spreadsheets is just not sufficient for data accuracy.

Therefore, digital methods are more acceptable due to their accuracy and real-time updates. Such digital methods include an asset management system, asset tracking, Computerized Maintenance Management System, etc.

What is Computerized Maintenance Management System?

CMMS is computer software designed to simplify maintenance management. CMMS stands for Computerized Maintenance Management System (or Software) and is sometimes referred to as Enterprise Asset Management (EAM) software, though they are slightly different from each other.

The Benefits of a CMMS:

  • Reduce Equipment Downtime
  • Increase Productivity
  • Lower Maintenance Costs
  • Enhanced Work Order Management
  • Increased Life of Equipment
  • Scheduled Preventive Maintenance
  • Improved Inventory Management
  • Generation of Custom Reports
  • Data-Driven Maintenance Decisions
  • Compliance & Safety Standards
Also Read: Basic Things You Need to Know About CMMS System
Outcomes of CMMS

How Asset Tracking is Helpful in Providing Features by CMMS?

Use of digital technology for asset tracking has changed the business model as it provides new and value-enhancing opportunities, as promised by CMMS.

Asset tracking is helpful in executing various activities for an organization like maintenance management, purchase and requisition, audit and physical verification, scanning of assets etc. Computerized Maintenance Management System can be executed easily through Asset Tracking.

Customizable Configuration

Asset tracking is very much user-friendly as it is customizable according to organization needs. You can also make customization and necessary additions, as desired.

Inventory Management

The maintenance team also manages inventories. Inventory can be usable items including extra parts of machines, accessories for manufacturing, office equipment, and materials; linens, room items, etc. in hotels.

CMMS Software informs the levels of inventories leftover in stock, quantities utilized during servicing, and reorder of fresh materials. Moreover, it helps efficiently in managing stock and controlling inventory-related expenses.

Mobile Platform

The mobile application for asset tracking followed by CMMS provides 24*7 access and convenience. If you want to know about the location of an asset, you can simply use your smartphone and access the application software.

The mobile technology has provided the ability to ask queries, resolve issues, and ensure on-time practices. Users are able to look up for updates and information even when they are away from their workplace.

Preventive Maintenance

PM is a routine for periodical inspecting, with the goal of  “noticing small problems and fixing them before major ones develop”.

It is a crucial part of CMMS as it can be scheduled in advance. Also alerts and notifications are issued to take up scheduled tasks.

The aim of preventive maintenance is to execute maintenance activity without any breakdown and failure of machines or equipment. It includes activities such as partial or complete servicing at specified periods, oil changes, lubrication, etc.

Preventive maintenance can actually save up to 20 to 30% of expenses on maintenance.

Purchasing & Requisition

The purchase and requisition processes are also made more efficient to give consistent results. The digital process for procurement is easy to set up as they are computerized with multiple operators to handle voluminous data instantly.

The requisition procedure is linked with purchasing requisition software in the asset tracking system to issue notifications on inventory before they reach minimum stock levels and there is need for re-order.

The requisite process is verified with related existing invoices and purchase orders before it gets approved. Reports are generated with zero blocking and delay. They thus have a real-time vision. Cloud-based storage is centralized with its effortless and seamless system and access for approval of requests.

Security Controls

Security is one of the least-considered aspects. An unmaintained asset or its sudden breakdown can lead to injuries to humans. Thankfully it can be avoided if proper precautions are taken.

Maintenance management software tracks maintenance and lets you know when the last maintenance was performed and when the next one is due. Computerized Maintenance Management System enables regulated access as a precaution against security risks. The right people get access to the application.

This also reduces eventual insurance costs as the precautions are meant to avoid accidents and injuries.

Work Planning and Scheduling

Many organizations implement computerized software to manage their work orders and optimize their maintenance operations.

From the application, you can easily know about work orders in detail. Crucial data can also be retrieved e.g. work order status, machine health, work order assignments, and work order history.

Also Read: 5 Risks of Not Using Asset Tracking Software in an Organization

What does Asset Tracking actually do in Computerized Maintenance Management System (CMMS)?

There are many functionalities where asset tracking helps with in Computerized Maintenance Management System (CMMS). Some of them are mentioned below:

Responsibility of Assets

All assets of an organization are always tracked. As it gets costly to track and assign ownership to every asset, the organization keeps a special track over the most important and useful assets. The importance of an asset can be listed on the basis of a number of factors as sensitivity, criticality, value, or compliance requirements.

Tracking every Asset

Every single asset of the organization is tracked. However, it may not be worth putting the same effort to track each one of them.

The size of the organization and number of assets used makes it necessary to identify the worthy assets that need to be tracked e.g. for the building, you need to monitor its condition and depreciation.

Effective Processes and Documentation

The processes involved in the implementation of asset management and tracking include:

  • Integrating inventory activity
  • Material requirement planning
  • Production scheduling
  • Unit costs for labour
  • Transfer of inventories to and from warehouse
  • Difference between physical counts and recorded amounts

The ownership of  IT assets includes paperwork which is also an important focus point in asset management. It is not only the asset but related documentation also that needs to be taken care of.

The list of documentation associated with the implementation of asset management and tracking can be warranty information, maintenance agreements, and proofs of purchase. These help in supporting the ongoing maintenance of the asset lifecycle.

MRO Approach

MRO (Maintenance, Repair, and Operations) refers to the supplies and goods used in production processes but are not part of the final product.

The principle of every organization is to manage its facilities at the lowest cost in the least possible time.

Therefore, the storeroom with MRO support organizes the right parts to the right places at the right time. This increases the organization's operational efficiency.

Centralized Source for MRO

Organizations using asset inventory management confirm that MRO supplies stored at one central location per facility are more efficient than storing them at different and unidentified locations.

It is important to have computerized systems to track, manage, and control inventory for organizing data usage and transaction costs in accordance with supply chain performance.

Visibility to Asset Purchase

Visibility of assets is necessary for an organization to manage the over-utilized assets, redeploy the under-utilized ones, and preparing for the purchase of new assets. Before making any purchase order, you must check the visibility of available assets to save the organization from overspending on surplus assets.

Unique Asset Tracking Numbers

It is necessary to use different tracking numbers to eliminate the problem of duplicity in serial numbers. Duplicate numbers can cause confusion, while compromising data integrity. Inaccurate customer accounting and inventory can impact rental income and customer satisfaction.

Sustainability of the Service

You should know about the required sustainable level of service which will help in implementing an asset management software for communicating with stakeholders on the operations.

The level of service requirements can be updated to account for changes due to growth, regulatory requirements, and technology improvements.

Information about Ghost Assets

“Ghost assets” are those assets that get lost, stolen, or are unusable, though they are still listed as active assets in the system.

You need to perform accurate physical audits of assets on a regular basis to detect and decide on ghost assets.

Also Read: Why CMMS Software Is Crucial for the Railway Sector Globally?


Asset tracking management software is very helpful for CMMS to make operations easier and more efficient. It makes management that much extra proficient and powerful.

CMMS also spells savings for a company. Overall, CMMS enables the management team to make smart decisions on the back of efficient operations and cost-saving on assets.

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