Tracking your assets is essential for your increase in income. Without proper control over them, you may lose all of your investments. Also, it will be hard to forecast your revenue with the lack of monitoring. So, what is the best way to keep your assets safe and increase your income?
Here are a few points on how to track your assets, read on:
What is asset tracking?
Asset tracking is the process of controlling the location and standing of your active investments. It is a significant part of asset control, which prevents the risk of neglectful attitude or loss of your grants.
Inventory management and asset tracking
It is a widespread delusion that people tend to consider inventory management and asset tracking as the same thing. In reality, those are different processes.
Let's see a simple example with the production of plastic containers.
Inventory management function about the products which will be a commodity for sale. In our case, it is the plastic containers themselves. They do not take any degree of deterioration and aim to gain money.
Asset tracking refers to the machinery which serves to produce these containers. It is not a material for sale and will work until it is out of usage period.
It is not that hard to distinguish the meaning of these two terms. We recommend you think about asset tracking in reference to the technologies. And, as the opposite, relate inventory management to consumable products. How does asset tracking work?
An asset tracking system consists of two parts:
Depending on the type of monitored asset, the hardware may involve GPS trackers, barcodes, QR codes, or RFID tags. A tracking device interacts with the software and provides data about the location and aspects of the asset. The proper choice of hardware is vital for ensuring tracking software security.
The software of an asset tracking system may differ depending on the purpose of the application. It can give information on the location, properties, and status of the asset.
Why choose a concrete app for asset tracking?
It seems like a good plan to use the asset-tracking application that you already have. No worries and extra work. But in reality, when you think about how to track your assets. This may have two crucial downsides.
- First of all, the system can get overloaded. If it is overburdened in one part, the entire process can stop. This way, you will have a risk of pausing all the system.
- Second, the more assets you have, the more the load of the system. And the application's capacity cannot extend. So, you will probably have a problem with the system's functioning.
Just imagine, you need to change your system. For instance, add some new features. Even if the alteration is tiny, you have to rewrite the majority of the code. After that, it is necessary to stop the old application's version. It will lead to the loss of some assets. Also, you have to be very careful. There is a risk that the entire system will stop functioning.
To avoid this unpleasant process, you have to use various apps for different assets.
Types of assets
To make the right choice to find out how to track your assets, find out what type of asset you have.
The first type refers to industrial assets, vehicles, and other types of movable assets. It requires clarity into their locations to get valuable insights about their usage.
As an example, an upstream oil and gas company. This establishment needs to have proper monitoring of its onshore oil drilling rigs. With an appropriate asset tracking application, the company achieves improved asset usage and reduced outage.
Assets in regulated industries
Advances technologies make the tracking of assets in regulated industries simple. It refers to labeling, storage, shipment, and distribution manners.
As an example, the assets in healthcare. The proper supervision of lab samples affects the efficiency of test results. It influences healing resolutions and patient care. Usage of barcoding provides access to real-time data about the statuses, positions, species, and demand dates of lab samples.
Inventory tracking is essential. You have to know the volume of it, the grade of temperature-sensibility, and fragility. One more factor is if it has the composition of personal assets or in packages.
Based on this information, you will opt for an optimal tracking method. It will provide you with proper control over a large inventory volume.
Advantages of proper asset tracking
Being an owner of assets, if you're willing to search out how to track your assets then it requires a lot of control. There are loads of processes. For instance: sale-purchase of products, the replacement of machinery, the sale of amortized assets.
You always have to be aware of the real-time information. It will show the statement of your company.
Let us represent some of the most prominent pros of assets tracking.
Guarantees commitment to executive obligations
The assets tracking will control the validity and the conserving of the products following the norms.
- It saves time and money:
- gives real-time, systematic data that provides better asset-liability;
- reduces losses;
- reduces the prospect of losing items;
- decreases executive expenses by reducing fragmented paperwork that is apt to person mistake;
- guarantees that broken assets get out of the records.
All of this renders to save time and to advance the bottom line.
Updates the monitoring of asset lifecycle
The usage of assets brings them to the reduction of capacity levels. You need to know which assets are near the end of their service and which ones need routine maintenance. It serves to decrease the number of unplanned failures and related expenses.
In other words, assets tracking makes the maintenance of the products simpler. It notifies you when the replacement or repairment is necessary.
How to build a solid asset tracking policy
- Prioritize significant assets;
- Determine an asset tracking plan;
- Conduct a test track;
- Balance and optimize.
Asset tracking is a vital subset of settlement processes in asset management. It concerns the shipment, production, healthcare, construction area. The benefits of collecting real-time data about demanding assets can be crucial for your business.
It provides the information to streamline support workflows for secured assets, optimize the purchasing of new items, and track the location and completion of moving assets.
The type of undertaking does not matter. Looking for how to track your assets is mandatory for each one. It will enforce the permanent maintenance of the stability of your assets.