The use of an asset tracking system is the basic procedure that a company needs to do to grow. Many businesses already have a preinstalled asset tracking system that tracks all physical assets, but these companies have a slight problem. They all use an outdated asset tracking system that lacks efficiency or the ability to handle big numbers.
The modern world requires a business to have an asset management system that makes it easier to access the correct data in the proper context and implement analytical models, such as a closed-loop system. An asset management strategy that has all of these as the core component is called a smart asset tracking system.
This detailed guide will discuss how to set up a smarter asset tracking system for your business. So that you can replace or instill a new system to track your assets. Furthermore, we will also discuss how you can solve your asset tracking issue using asset tracking software. So keep on reading to know more.
Steps to Set a Smarter Asset Tracking System
Step 1: Identify Your Assets
The first step is to identify all your assets owned by your business. Assets can be defined as digital or physical items that hold some value for your company. For example, electronics, medical equipment, pharmaceutical products, manufactured parts, tools, shipping containers, packages, retail goods, vehicles, and more.
Step 2: Make a Note of Each Asset
After identifying all your owned assets, you need to make an inventory of all the items owned by your business. Next, you need to add categories and ranks to all your items according to their value, type, location, and other distinguishing elements. Organizing your assets is a crucial part of tracking them. Finally, you must note each asset and register it to someplace safe that is easily accessible to you and your company. For example, you can use cloud storage applications to save your data.
Step 3: Calculating the Asset Demand
To understand your assets’ current value, you need to consider a few things: customer product demand, shareholder value creation demand, and regulatory requirements. By obtaining these statistics, you can quickly determine a level of service related to amount, frequency, or how many times you must use each asset to create value.
Step 4: Asset’s Cost Over Life and Reduce Risk
Now that you have understood the asset demand, you must calculate the asset maintained cost. For example, if you sell ice creams, you need to buy a refrigerator to keep the asset performing well. It would be best if you also considered repair costs. Now that you have an idea about how much your asset is going to cost the business, you need to address any risk.
For example, if your demand is low and your upkeep is going to be more than your profit, you should decrease the risk. You can do that by discontinuing the product. By doing so, you will minimize your losses and save your business from facing severe debts. Or you can reduce the upkeep to match the profit you will be making from the product. You can do this by optimizing things like the cost of managing, the cost of acquiring, the cost of moving, and the cost of maintaining.
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Asset Tracking Using an Asset Tracking Software
Asset Tracking Software is a modern digital tool designed to help businesses track and manage their physical assets using various technologies. This software tracks an asset using multiple technologies like barcodes, QR codes, RFID tags, and GPS trackers. For example, you can see how a cashier scans and adds an item to your bill when you visit a shop to buy something.
These retail shops use barcodes to keep track of their assets using specific software. These types of software help you access and find the item you are looking for within seconds from millions of registered assets.
Some Benefits of Using Asset Tracking Software
- Achieve a better understanding of all your tagged assets using your computer.
- Easily track all your items in your inventory, thus reducing the risk of stolen or lost items.
- Save money on replacing lost and stolen items, plus it is easy to catch a thief using electronic tags.
- Access your asset information anywhere in the world using any computer, thanks to cloud-based asset registration.
Choosing an Asset Tracking Software
Now that you understand how beneficial it is to use asset tracking software to track assets, you must understand one thing before jumping into enrolling for one. It is best to register for a trial run before actually buying the software. This way, you can understand if the software will help your business or not.
Asset tracking is a crucial step you must take as a business in order to grow. As your business expands, your inventory does too. At some point, it is impossible to track your assets using pen and paper only. That is why switching to a smart asset management system like Airtel IoT is the wisest choice to make. With this step-by-step process, switching to software can help you track your assets more efficiently.
1. What industries use an asset tracking system?
Industries that have to maintain an inventory use an asset tracking system. For example, retail stores need asset tracking software to track all their items in the stock and the cash inflow.
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2. What kind of assets can I track with asset tracking software?
You can track any countable assets like electronics, medical equipment, pharmaceutical products, manufactured parts, tools, shipping containers, packages, retail goods, vehicles, and several other asset categories.
3. Is it possible to track my asset using a homegrown tracking system?
Yes, many companies like you often create asset tracking systems, but they usually fail because they use outdated technologies like pen and paper to keep track of their assets. It is advised to use modern software to track your assets.