Asset tracking

What is asset tracking?

Asset tracking is the process of documenting all information about a piece of equipment or other assets for easy access should the need arise. Without asset tracking, there’s a significant risk of assets breaking down, not working, or being misplaced without any recourse.

What information should you track?

When it comes to your assets there are different pieces of important information that you should track, including:

• Asset name: This is the asset’s technical name or any terms it’s known by within your organization.
• Physical location: Where the asset is located within a facility and asset hierarchy (for fixed asset tracking) or the current and expected movements (for movable or mobile assets).
• Asset purpose: What the asset is used for in the context of your organization, and how it fits into any relevant work processes.
• Assigned individuals: Who has specific access to the asset (if applicable), or which group(s) of people have general access? Who is accountable for ownership, maintenance, and other asset lifecycle management tasks?
• KPIs and metrics: What the asset is supposed to deliver (and how much), as well as how maintenance performance is measured and tracked.
• Maintenance schedules and resources: Tracking each maintenance activity (what was done to an asset, when, and by who) and planning future maintenance tasks.
• Failure and downtime: When the asset is not performing and the reason(s) why.
• Asset lifecycle information The expected useful life of the asset, replacement or upgrade expectations, and other asset lifecycle management information.
• Remaining useful life (RUL): Refers to the estimated amount of time an asset has before it needs to be replaced.

Benefits of asset tracking

Asset tracking offers several benefits, especially in organizational and operational efficiency:

1. Save time: When an asset is tracked, you always know where it is, what it can do, and other lifecycle information. This saves a lot of time when an issue arises, or a question gets asked that requires this type of information to address.
2. Use resources efficiently: Tracking assets gives you visibility into their remaining useful life and connectivity to the whole operation. This helps make strategic decisions about how to use assets for maximum efficiency.
3. Cut costs: Tracking assets reduces the risk they will go missing or break down, saving money on maintenance or replacement.
4. Ensure compliance for auditing: Asset tracking provides a reliable audit trail (opens in new tab), making it easier to demonstrate compliance with regulations and standards. It also simplifies asset valuation for financial reporting purposes.