Cloud Asset Tracking: Why It Matters & Features To Look For

What Are “Assets” In A Business?

Every company has assets. The most obvious of these are physical items like IT equipment, machinery, tools, and office furniture. However, assets can also be digital, such as supplier agreements, software licenses, and employee qualifications and certifications. The larger a company, both in size and scope of activities, the greater the number of assets it typically has and the more crucial and challenging their management becomes.

This can quickly turn into an unwieldy and overwhelming task however, especially when companies try to rely on spreadsheets or outdated tools for their asset tracking.

In today’s article, we will look at what asset tracking is, why it matters and the role of cloud asset tracking software in steamlining business operations, minimizing risks and reducing costs.

Asset Tracking Is More Than Cataloguing

Asset tracking is about more than just cataloguing what your company owns. It's about keeping a comprehensive, real-time overview of your company's inventory, including details like when assets were acquired, how they are currently being used, their performance, and maintenance schedules.

It's also about knowing which office or branch has specific equipment, who's using it, for how long, and ensuring that the right employees, with necessary skills and qualifications, are operating the machinery, tools, or equipment. This level of detailed tracking helps ensure that each asset is used to its full potential, leading to more streamlined operations, greater cost efficiency, and reduced risks.

Why Asset Tracking Matters?

Consider the management of IT equipment as a case in point. Effective management of these assets is crucial in ensuring that daily-use devices function optimally, avoid unnecessary downtime, and are protected from various risks. This demands precise maintenance management. Without thorough asset tracking, crucial maintenance activities can be overlooked.

The same principle applies to managing software licenses, not only for safety and uptime but also to meet contractual obligations. Asset tracking equips businesses with the necessary tools to efficiently use their resources, extend the lifespan of their assets, and significantly reduce operational costs. Ultimately, it boosts the return on investment (ROI).

Challenges With Traditional Asset Management Methods

Traditionally, many companies, especially smaller ones, have depended on basic tools like Excel spreadsheets for asset management. While these tools are sufficient for initial, small-scale asset recording, they fall short in managing the complexities and evolving demands of a growing business.

This is particularly true when it comes to connecting various aspects of asset management, such as identifying assets, tracking their usage, assessing performance, and keeping up with key deadlines and supporting documentation. Moreover, manual data entry, inherent in these methods, is not only time-consuming but also highly susceptible to human error, leading to potentially costly mistakes.

Another significant issue with traditional tools is their lack of integration capabilities with other business systems like accounting software, procurement systems, or maintenance scheduling tools. What businesses need is a way to track their assets comprehensively across their lifecycle and alongside other business activities.

Costs And Risks In Inefficient Asset Tracking

As may be clear from the above, inefficient asset management can lead to significant operational issues and hidden costs for businesses. Imagine crucial equipment failing or being unavailable at key times, or staff using machinery they're not trained for. Poor asset management often means poor maintenance management, which can cause equipment breakdowns, workplace accidents, or health and safety regulation breaches. These issues not only disrupt operations but can also lead to substantial financial penalties and legal liabilities.

Moreover, there's a reputational risk with non-compliance and safety incidents. Such events can harm a company's reputation and weaken trust among employees and customers, often resulting in long-term costs that surpass the immediate financial impact. 

Transforming Operations With Effective Asset Tracking

Conversely, by implementing an integrated cloud asset tracking software, companies can significantly manage risks while enhancing operational efficiency. Effective asset tracking has been shown to reduce equipment downtime and resource loss by minimizing time spent searching for equipment and addressing issues from unreported faults.

Centralizing vital asset information into one easily accessible repository is another major benefit. For instance, all data about a piece of equipment, including its lifecycle, maintenance records, usage history, and compliance status, can be recorded and consolidated in one place. Access to this comprehensive data enables managers to make well-informed decisions about asset utilization, procurement, and eventual retirement.

Additionally, it empowers decision-makers to analyze trends, anticipate future needs, and plan procurements and investments with higher precision. They can also pinpoint opportunities for cost reduction, such as by identifying underused assets or optimizing maintenance schedules.

The Role Of Cloud-Based And QR Code Technology In Asset Tracking

Asset tracking has undergone a significant transformation with the introduction of cloud-based technology, revolutionizing the way businesses manage their assets. These cloud asset management software tools enable access to inventory information from any internet-enabled device, regardless of time or location. This flexibility allows users to instantly use their phone or other devices to record updates, perform stock counts, or even upload images and files. For instance, they can report faults or share instruction manuals and protocols, making the process more efficient and responsive to immediate needs.

• IoT vs QR Codes For Asset Tracking

When considering asset management, it's important to note that tracking assets doesn't always equate to knowing their real-time location. This level of tracking is typically achieved using GPS hardware devices attached to the assets. Internet of Things (IoT) solutions are highly effective for tracking larger or more expensive tools and equipment in sectors like construction or fleet management. However, the larger size and higher initial investment associated with IoT technology make it less viable for smaller and everyday business tools and assets.

This is where QR code technology comes in as a practical and cost-effective alternative. It involves attaching simple barcode labels to assets, which can be scanned and managed using common devices like smartphones, tablets, or computers. This approach allows companies to track and manage their assets without specialized scanning equipment, making it more accessible and affordable for businesses of all sizes.

But does this mean you can track the exact location of an item using a QR code? The answer is both yes and no. Yes, in that the item's location at the time of scanning the barcode can be recorded with GPS enabled. No, because it doesn't allow for real-time tracking if the item is moved or lost afterward. The tracking is dependent on users scanning the barcode or updating the information in the asset tracking system.

• Better Planning through Scheduling

A standout feature of asset management solutions is their scheduling capabilities. This means companies can effectively reserve and allocate specific equipment to staff or contractors, ensuring that the right tools and resources are available at the right time. Similarly, they help in streamlining maintenance schedules and managing staff training programs as it’s easier for companies to maintain an overview of what’s due and to make sure nothing is missed.

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Key Considerations When Choosing Asset Tracking Solutions

When selecting an asset tracking solution, it is essential to choose a system that can be tailored to a company's specific needs and challenges. Here is a brief buying guide:

• Be Clear About Your Specific Requirements: Understand the problems that you aim to solve with asset management, especially during the early stages. It is common for companies to start in one area and then gradually roll out asset tracking across the entire business.
• Ease of Use: The asset tracking solution should be straightforward and user-friendly, accessible to employees, contractors, and other stakeholders. When combined with powerful features, simplicity is key. The more intuitive the system, the more readily it will be adopted by its intended users.
• Think About the Wider Value: The cost of the software solution is a key factor but should be considered in the wider context. Evaluate the benefits of a particular solution and its potential for integration and savings in other areas of the company.
• Flexibility in Customization: Look for an asset tracking tool that is versatile and allows you to manage and categorize assets in a way that suits your business operations. Customization and flexibility are essential, as no two businesses are the same.
• Remote Accessibility: Opt for a cloud-based solution that allows access from any device and location. This is crucial, especially for solutions supporting a large, potentially unlimited number of users. They should have anywhere, anytime access.
• User Management and Permissions: Choose a system that simplifies user access control but does not limit the number of users. Ultimately, you want to be empowered to deploy the tool as needed.
• File Management: Select a platform that consolidates all asset-related files in one location, creating a centralized reference point beneficial for multiple departments. This includes images, user manuals, contracts, maintenance records, and more.
• Implementation and Ongoing Support: Seek a solution that is easy to set up, provides comprehensive onboarding support, and offers assistance with data migration if necessary. Ensure you get real-time customer support and responsiveness to development inquiries.

Lastly, it is highly recommended that companies utilize free demos and trial periods. These are crucial for assessing a software's compatibility with specific business operations and for getting any questions answered before committing to a specific asset tracking solution.