Companies worldwide rely on asset tracking systems to keep tabs on the thousands of items they produce and distribute daily. What many don’t realize, though, is that a proper strategy can also cut costs, prevent accidents and injuries, and improve efficiency within the business.

Learn how an asset tracking system can transform your company in 2023.

What Is an Asset Tracking System?

An asset tracking system tracks and manages the movement of physical assets, such as equipment, tools, and machinery. They are also used with maintenance programs to monitor asset usage and maintain the appropriate service levels. An asset tracking system monitors and reports on organizational assets, their use, and their condition.

Why Use an Asset Tracking System?

asset tracking system

Asset tracking typically involves using barcodes, RFID tags, or GPS technology to identify and locate assets and software to record and analyze data about the assets. Here are some of the benefits your company will see if you track assets today.

Real-Time Tracking

One of the main benefits of asset tracking is the ability to continuously monitor the location and status of your assets. GPS satellites circle the Earth in space and provide data signals pinpointed to a surface location. RFID tags, also known as transponders or chips, are used in asset tracking to send information via radio waves to a receiver.

These features are essential for systems that rely on mobility, as it allows you to track your assets at all times. When you track company assets, you can always know where your assets are and their use, which can help you optimize your operations and recover them in case of theft.

Optimizing Production

Asset tracking can be a valuable tool for optimizing production and increasing efficiency in the manufacturing process. Businesses can gain valuable insights that can help streamline operations and increase productivity by tracking assets throughout production.

There are several ways in which asset tracking can improve output, including improving the overall equipment effectiveness (OEE) through enhanced performance, availability, and quality. Additionally, asset tracking can help reduce cycle times by enforcing work-in-progress (WIP) limits and identifying production bottlenecks and delays.

Ensuring Compliance

Manufacturing compliance refers to the standards, laws, and procedures that manufacturers must follow to operate safely and effectively. Company heads should manage potential risks to maintain compliance in the manufacturing, assembling, maintenance, repair, and overhaul (MRO) processes.

Asset tracking can effectively reduce these risks by providing precise and current records of the location of tools and assets, who is using them, and for what purposes. By tracking these details, manufacturers can identify non-compliant behaviors that may arise during the audit process.

In addition to helping manufacturers maintain compliance, asset tracking can simplify the audit process. By providing a comprehensive record of asset usage and location, asset tracking can make it easier for quality and compliance teams to conduct internal audits, saving time and resources.

Error Proofing

Errors in industrial processes can arise from various sources, including people, machines, and materials. These errors can lead to unsatisfactory output, increase production costs, and negatively impact other aspects of the business, such as asset downtime and customer service.

Companies can use an asset tracker system to address these issues and improve efficiency. By tracking the location and condition of assets, organizations can quickly identify ways to improve their operations and prevent losses.

Businesses can use asset tracking to gain valuable insights into how assets move, which can help them more effectively manage their resources and prevent losses. While no system can eliminate the possibility of human error, asset tracking can help businesses anticipate and address potential issues to reduce mistakes.

Enhancing Safety

The high cost of workers’ compensation settlements due to workplace accidents can negatively impact production. For example, the output will slow down when a machine is seriously damaged and out of commission for an extended period.

Asset tracking can help to increase operational safety in the manufacturing industry by providing real-time visibility into the location and status of assets.

For example, suppose a manufacturing asset is in a hazardous area in a way that poses a risk to workers. In that case, asset tracking can alert management and allow them to take corrective action. Asset tracking can also help ensure that only trained and certified operators use heavy machinery and equipment in the construction industry.

Additionally, asset tracking can assist first responders in providing better care for victims. It provides them with important information about the cause of the accident and the condition of assets and individuals. It also makes it easier to locate damaged equipment and report it to an insurance company or other parties involved in the incident.

Final Thoughts

Asset tracking can help companies be more efficient, improve their processes, and increase productivity. Investing in this technology will have a lasting impact on businesses, so it’s essential to find the right one that fits their needs.