Asset tracking refers to the process of precisely tracking physical assets, be it in the form of fixed assets like buildings or automobiles or even fixed assets like furniture. The main benefit of this asset tracking technique is that it helps you monitor the condition of your assets and thereby improve your productivity, efficiency and cash flow. With this asset tracking, you would be able to make better decisions concerning investment, repair and disposal of fixed assets. In turn, this will help you save on the heavy operating costs that accrue due to repairs and maintenance of your assets.
This technique is known as asset management. The basic idea behind this asset management technique is to ensure the safe handling of these assets throughout their life cycle from their purchase until disposal. Asset tracking helps in this area of inventory management by providing a real-time picture of inventory and associated asset availability. The importance of asset tracking can not be underestimated. It can help you determine the optimal way of using your inventory assets and how much inventory is actually required for day-to-day operations. This will help you streamline your inventory management processes and thereby increase inventory management ROI.
Another important aspect of asset tracking is asset recovery. Through the use of asset tracking you will be able to determine the right time to initiate asset recovery. You will also know the cost effectiveness of asset recovery when compared with conventional warehouse inventory management methods and the costs of manual asset management.
The Benefits of Asset Tracking
Asset tracking offers significant advantages over traditional inventory management. For starters, the time taken for asset recovery is significantly reduced. Usually, asset retrieval takes hours whereas with asset tracking the recovery may take minutes or even less than a minute. This reduced time taken for asset recovery makes asset management more efficient, while at the same time increasing inventory management efficiency. Also, the automated nature of asset tracking system eliminates the subjective factors involved in the decision making process associated with asset management.
In addition to all these advantages, asset tracking also provides certain asset related benefits to an organization. One of them is asset availability. When an asset (e.g., inventory asset) is physically located in a single location, the location becomes less secure. Security threats, theft, or loss can affect one or more locations of your inventory assets. Through asset tracking you can easily determine the locations of your inventory assets that are most vulnerable to security threats and can thus protect these locations through physical and virtual protection. Also, this helps you reduce the costs involved in securing your inventory assets.
The accuracy of asset tracking systems plays an important role in inventory asset management. If the inventory asset management systems cannot provide you with accurate inventory data, then you will have to incur additional costs to update the information. In addition to this, the inaccuracy in the data provided can seriously impact on the operational procedures, costing you valuable time and resources. It is therefore advisable to opt for better inventory asset management software that can help you get accurate inventory data without affecting your operational procedures.