Asset Tagging & Tracking: Why It Makes Sense For Small Businesses

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Businesses of all sizes own multiple assets, which they need to track, monitor, and maintain at all times. These could be a mix of fixed and movable ones, depending on the size and niche of your company.

Since there are often multiple assets that organizations own, it is important to have a proper tagging and identification system in place so that you can proactively manage them.

In fact, even small businesses need to invest in asset tagging, despite the smaller number of assets they own and the budget constraints they have.

Before going further to discuss the feasibility of the investment for small enterprises, let us explain the concept of asset tracking in detail.

What is asset tracking?

As the name implies, asset tracking is meant to keep track of the fixed or moveable physical assets owned by the business.

It leverages asset labels or tags to streamline the monitoring, allocating, and managing of physical assets. These tags are affixed to the items and have identifications in the form of numbers or barcode labels.

Obviously, with tags in place and proper identification on them, it becomes easy to monitor and manage the assets, no matter how many of them your business owns.

Even if you run a small entity, there will be a reasonably good number. So tracking them consistently makes sense because they are worth money after all.

What assets should a business track? 

Asset Tracking and Asset Tagging For Small Businesses 2020While tags can be used for tracking all kinds of assets, it does not imply that you need to keep an eye on every single one you own.

The approach wouldn’t be viable at all, particularly if you plan to scale your business for agile growth in the future.

Ideally, high-value assets, such as the ones that get depreciated over time, need consistent tracking.

Similarly, you need to track the ones that require regular repairs and maintenance or replacement of parts, because failure to do so can lead to hazardous incidents.

For example, businesses operating in the industrial segment need to keep a close watch on equipment and machinery to ensure upkeep and maintenance.

Further, there are some more assets that small businesses can consider for labeling. These include:

  • IT hardware including computers, printers, and servers 
  • Audio-visual equipment such as projectors
  • Capital equipment such as machines and tools
  • Fixed assets  such as plant and industrial equipment 
  • Furnishings such as desks, chairs and filing cabinets 

Tracking your corporate assets enables you to get data on their status and create streamlined processes, such as inventory management and accounting for depreciation.

You can use blank metal tags and label them using a unique identification number for each item.

These metal tags are available in a variety of materials, including stainless steel, aluminum, brass, and more. These are an ideal option for small businesses because of the durability they offer.

Benefits of asset tagging for small businesses 

No matter how small or large your organization is, streamlining your operations is always a good decision.

Even though you may need to invest a bit in implementing effective asset tracking solutions, the advantages they serve make it a worthy investment.

It serves as the foundation for seamless workflows and drives a wide range of benefits. Here are some of them. 

1. Reliable monitoring of physical assets

Consistent and reliable monitoring of physical assets is the most obvious benefit of asset tracking solutions.

Small businesses are able to keep a close track of their assets as they move across the organization- between departments, floors, and even locations.

This empowers them with a better view of their complete physical asset portfolio.

Additionally, they can identify the replenishment needs and eliminate unnecessary duplication of assets with enhanced resource management. 

2. Streamlined maintenance management 

Asset Tracking and Asset Tagging For Small Businesses 2020Asset tracking solutions are essential for businesses that use assets that require ongoing or periodic maintenance.

It is easy for owners and managers to fall behind the maintenance schedules when they rely on manual documentation.

They may simply miss out just because they are too busy handling other tasks.

With asset tagging, scheduled maintenance no longer remains an afterthought.  

3. Automated inventory control 

Another reason that makes asset tagging a smart move for small businesses is that it automates inventory control to make it more efficient and accurate.

At the same time, the workload of inventory management is eliminated. For instance, physical inventory counts periodically are still essential for most organizations.

But with assets tagging, verification becomes quick and easy. All you need to do is match identification numbers to records and you are done. 

4. Loss prevention 

Misplaced and lost assets are common for businesses in the course of day-to-day operations.

As devices, equipment, tools, and other items are frequently moved through an organization, it may not always be possible to document them accurately.

When you require the same asset later, the records often fail to reflect its current location. However, tagging and tracking enable you to steer clear of this critical concern and keep your belongings safe.

5. Regulatory compliance 

As small businesses often operate in heavily regulated industries, compliance with the required standards is a key concern. You need to equip the business with efficient processes for capturing and reporting on data to manage compliance.

Asset tracking enables you to stay ahead of the regulatory requirements such as equipment calibration, testing, and maintenance.

Further, it can also streamline your reporting requirements as accurate and relevant data makes it far easier to compile reports as compared to doing it manually.  

6. Better service to customers  

Overall, asset tracking empowers businesses to perform better and deliver excellence in customer services.

They are able to maintain equipment and tools and allocate resources to projects effectively to ensure completion on time and within budget.

The end result translates into increased customer satisfaction.

Obviously, you can expect higher profits by getting repeat business and word-of-mouth recommendations from satisfied customers. 

Clearly, asset tagging and tracking become a wise initiative for businesses, regardless of their size and scale.  

Despite the investment and effort involved, small enterprises must embrace the move to unlock massive growth opportunities.

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