How Are Asset Tracking and Inventory Tracking Different?

Did You Know: It’s concerning that up to 80% of employees waste valuable time each day, dedicating around 30 minutes to access information. Imagine if your RFID asset tracking software system could proactively address issues before they arise. It’s time for your business to excel with the right solution, paving the way for improved efficiency and productivity.

Organizations should be mindful of the subtle differences between the terms ‘Asset Tracking ‘ and ‘Inventory Tracking.’ Asset tracking and inventory tracking are two distinct asset management approaches with similarities, such as locating items and facilitating physical inventories. However, the crucial factor that sets them apart is what is being tracked, the resulting information, and the entity that uses it. The specific items monitored, the data generated, and the organizational context in which these tools are employed differ between asset tracking and inventory tracking.

For an organization to function seamlessly and efficiently, it is crucial to have interconnected components that work together as a unified entity. This requires proficient management of assets and inventory, with a clear understanding of their distinct roles to optimize organizational performance. It’s noteworthy that assets represent what an organization owns, while inventory pertains to items available for sale.

To effectively manage your business operations, it’s essential to understand the differences between assets and inventory management. Familiarizing yourself with the functionalities of these systems is crucial for adequate preparation in successfully implementing them into your business. This learning can help you make informed decisions and optimize your business processes for maximum efficiency and profitability.

Asset Tracking vs. Inventory Tracking: What Is the Difference?

When seeking a tracking software solution or a professional retail inventory management software to enhance your organizational processes, whether for asset tracking or inventory tracking, it’s essential to grasp the distinctions between these two critical functions. This knowledge streamlines your decision-making process and ensures the efficient implementation of the right RFID software for your specific needs.

Asset Tracking:

Empowering Tracking with Unique IDs: The efficacy of asset tracking is enhanced using durable asset tags, each bearing a unique and distinctive ID, facilitated by RFID technology.
A Diverse Array of Tracked Assets: Inclusive and versatile, asset tracking oversees a spectrum of fixed assets, ranging from computers and furniture to various equipment.
Guarding Against Theft and Obsolescence: Asset tracking, including RFID inventory management, stands as a formidable shield, protecting valuable assets from the threats of theft and obsolescence.
Structured Approach to Returns: In ensuring a seamless return process, asset tracking follows a systematic and expected approach, streamlining the handling of returns.
Comprehensive Transactional Landscape: Encompassing a broad spectrum of transactions, asset tracking involves adding, assigning, moving, disposing, receiving, and periodic or continuous maintenance based on existing records.
Preservation through Maintenance: Asset tracking necessitates periodic or continuous maintenance of the tracked assets to ensure optimal functionality and prolonged lifespan.
Strategic Visibility for Financial Prudence: Elevating financial prudence, asset tracking provides critical visibility into assets, preventing unnecessary taxes and insurance costs with an RFID system.
Capable Oversight by Authority: Typically falling under the purview of a property or asset manager, asset tracking places the responsibility on skilled and experienced hands.

Inventory Tracking:

A Diverse Spectrum of Tracked Items: Embracing diversity, inventory tracking spans a broad array of items, from products and parts to supplies and various stockroom inventory.
Safeguarding Against Expiry: Inventory tracking is a strategic measure to prevent items from expiring before selling, employing the latest technology, such as the RFID inventory system.
Granular Visibility for Informed Decisions: Offering granular item-level visibility, inventory tracking empowers organizations with exact quantities for informed re-ordering decisions facilitated by the advanced RFID system.
Efficiency through SKU Labels: Utilizing non-durable labels featuring Stock-Keeping Units (SKUs), inventory tracking achieves efficiency, accuracy, and streamlined operations, further enhanced by integrating an RFID scanner.
Dynamic Transactions in Movement: Focused on the dynamic movement of inventory, transactions in inventory tracking primarily involve the seamless processes of moving and issuing items with no specific maintenance requirements.
Maintenance-free Inventory Management: Unlike asset tracking, inventory tracking requires no maintenance for tracked items, simplifying operational processes.
Adaptive Handling of Returns: Inventory tracking adopts an adaptive approach to returns, involving exception handling and strategic problem-solving for seamless return processes.
Warehouse Oversight: Generally managed by a warehouse manager, inventory tracking is implemented by professionals well-versed in optimizing warehouse operations.
Embracing Short-term Dynamics: Tailored for short-term dynamics, inventory tracking aligns with the nature of items with a limited shelf life, ensuring agility in managing stock.

Exploring the Advantages of Asset Tracking and Inventory Tracking

Both asset tracking and inventory tracking bring forth many advantages, contributing to streamlined operations and enhanced organizational efficiency. Below are key benefits shared by these functionalities:

Precision in Identification:

Asset Tracking: Durable tags with unique IDs are affixed to each organizational asset, ensuring longevity and ease of identification.
Inventory Tracking: Non-durable labels bearing Stock Keeping Units (SKUs) are applied to supplies and products, aligning with the inventory’s short shelf life and sales-focused nature.

Real-time Insights for Proactive Decisions:

Asset Tracking: GPS positioning and asset tags provide real-time and accurate data, essential for eliminating duplicity and ensuring precise asset management.|
Inventory Tracking: Real-time tracking in inventory management offers accurate location data, providing transparency in the inventory’s journey and enabling timely communication with customers.

Lifecycle Management and Beyond:

Asset Tracking: Tracking the life cycle of assets is crucial to managing maintenance costs and preventing unnecessary expenses on unproductive assets.
Inventory Tracking: Unlike asset tracking, inventory tracking doesn’t involve direct maintenance costs. Maintenance activities are associated with production equipment and machines categorized under asset tracking.

Tracking Beyond Boundaries:

Asset Tracking: Assets can be efficiently located and recovered using GPS positioning facilitated by asset tags, which is crucial for managing a large inventory of assets.
Inventory Tracking: GPS-enabled labels simplify tracking the precise location of supplies during bulk dispatch, ensuring transparency until delivery.

Audit and Physical Verification:

Asset Tracking: Regular audits and physical verification of assets help uncover potential discrepancies in licenses and assets, allowing for corrective actions.
Inventory Tracking: Audits and physical verification in inventory management ensure an accurate assessment of production quantities, aiding in tax compliance.

Choosing an Integrated Inventory and Asset Management System for Seamless Business Operations

Choosing the right inventory and asset management system is critical for any business. The selected solution should align with the organization’s current needs and be flexible to adapt to future requirements. Opting for a cloud-based solution mitigates the challenges associated with software maintenance and upgrades, eliminating the need for dedicated staff to oversee the system.

Many modern solutions come with mobile capabilities, enabling real-time tracking as items move throughout the warehouse. This feature is paramount for maintaining accurate inventory management. The ideal solution should offer comprehensive inventory control features, adeptly calculate asset depreciation, and facilitate effective maintenance planning.

This strategic decision ensures that the business is well-prepared to handle contemporary operational demands while providing flexibility for future growth and changes.

Revolutionize Operations with Lowry Solutions: Mastering Inventory Management and Asset Tracking

Empower your business operations with the cutting-edge solutions provided by Lowry Solutions, one of the leading RFID asset tracking software companies. We take pride in offering an integrated inventory management system with advanced asset-tracking capabilities. Our hybrid cloud-based solution ensures streamlined operations, featuring automated replenishment, precise cycle counting, and enhanced traceability.

With our system, you can monitor items by lot or serial number across various locations, optimizing their usage and preventing expiration. At Lowry Solutions, we understand the importance of complete control over asset life cycles. Our Fixed Assets Management solution is designed to offer robust depreciation support and seamless integration with accounting modules.

Explore the extensive benefits of our Inventory Management System and Fixed Asset Management System, which exceed the standard. Our solutions are tailored to reduce operational costs and enhance cash flow, fostering sustainable business growth. Join hands with us and discover the difference our expertise in RFID software can make for your business.

Learn More about Lowry Solutions and Transform Your Operations Today!

FAQs

Q1: Why Is RFID Technology Essential in Asset and Inventory Tracking?

A1: RFID technology enhances tracking efficiency, offering unique IDs for assets and enabling granular visibility for informed re-ordering decisions in inventory tracking.

Q2: What Is the Significance of SKU Labels in Inventory Tracking?

A2: SKU labels featuring Stock-Keeping Units form the backbone of efficient inventory tracking, ensuring accuracy and streamlined operations.

Q3: Why Is Real-time Insight Crucial in Proactive Decision-making?

A3: Real-time insights provide immediate and accurate information, enabling proactive decision-making to address potential issues and optimize operational efficiency.

Q4: What Benefits Does Lowry Solutions Provide for Inventory Management?

A4: Lowry Solutions provides benefits such as automated replenishment, accurate cycle counting, and traceability to track items by lot or serial number, ensuring efficient inventory control.

Q5: How Does Lowry Solutions Support Asset Tracking and Management?

A5: Lowry Solutions excels in fixed asset management, offering complete control over the life cycle of assets, comprehensive support for depreciation, and integration with accounting modules.