The role of asset tagging in asset management

There are standards of business that need to be followed to do well in the industry. Every company has its own recipe for success. Do you probably think what the secret ingredients are? To operate smoothly, you have to start with strategic planning, setting up an official business entity, managing finances, investing in software, and other necessities. The question is, where does asset management come into play? What is its primary function, and how does it affect the future of each company? Let us start by revealing the role of asset tagging in asset management.

Asset Management

The word asset comes from the Latin word ad, meaning direction, and satis, which means sufficient. If we translate the word asset into the world of today, it literally means an item that has a value that belongs to a person or more. On the other hand, management means a method in which you deal with things or individuals. Asset management is the procedure in which companies monitor their assets together and record all relevant details about their possessions. From what store it came from, the date it was bought, to details of what objects are.

If assets are not adequately handled, the business risk runs into major problems that prevent scaling, such as inefficient spending, equipment shortages, etc. Every industry seeks strategic plans to fulfill and stay ahead of customer requirements, which is the ideal primary element for a successful business. But, how do they manage all items effectively? The answer is the asset life cycle.

Asset Life cycle

The primary stage in asset management is the life cycle, in which they are responsible for the life cycle of the asset to check whether or not it will still give the company value. The phases in the life cycle of assets are listed below:

Phases of the asset life cycle

  • Planning – This is the phase in the asset life cycle where you check whether or not you need the item for the company. It is where a detailed assessment takes place and to verify whether the asset’s specifications would be able to fulfill the needs of the client.
  • Procurement – Only after defining the cost and the parameters can you make the right decision to choose the best choice. The procurement of an asset involves operations where the asset is guaranteed to be ready for use to ensure a cost-effective purchase, improving reliability that results in performance
  • Operation and Maintenance – After deciding which item to buy for the company’s service, it is time to hand it over to the users and test the asset’s capabilities. Assets should be able to improve the workflow at this stage and should be given proper maintenance from time to time.
  • Disposal – The fact that all equipment does not last and will proceed to the final stage of the life cycle, disposal, is a known fact. Where the asset becomes a liability once and no longer works or adds value. It could be a loss in terms of sales, but by saving it by tremendous repairs, this will save the business from losing more revenue.

Asset Tagging

Now, let’s go and explore how businesses can systematically track all properties, apart from knowing how the process goes in the life cycle. The main objective is to allow companies to track the real-time status of their assets. It can be labeled with serialized numbers to scan into your computer system for fast traceability, making inventory management simple. In large-scale businesses, different types of asset tags made by Metal Marker Mfg are widely used to help identify all kinds of equipment that are also best used for any surfaces, whether it’s made out of metal, wood or plastics.

Type of asset tagging

  • RFID – This is the easiest way to verify the asset as it recognizes and tracks it in real-time automatically.
  • Barcode – These are widely seen in grocery stores, where parallel lines consist of black and white. If you have scanned an item, it will give you brief details such as name and price.
  • QR code – It is more used and frequently used for payments via smartphones.
  • Data matrix – this is well-known in the food industry and is used in auto-coding systems to avoid mishandled food products.

By using this tagging, it can make the inventory easier, as it helps deter fraud and boost the company’s operational flow, lets employees find and monitor each item faster, labels the assets with its name and logo as the property of the company, and helps to recover the item if it was stolen or misplaced.

You have the ability to bring your company into the next stage with the fundamental knowledge of asset management. Always make sure you recall the tips above, and you are all set to expand your company.

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