One of the key components of good accounting is good tool tracking. At first, it may sound like the two don’t quite go hand in hand. However, lost equipment hurts the bottom line, which in turn creates opportunities for improvement.
Raising cash flow by controlling spending is a classic business strategy, but it is one that works. Eliminate the need to purchase duplicates by getting better at tool tracking.
The High Cost of Inferior Tool Tracking Systems
The cost of lost equipment to modern businesses is absolutely staggering and highlights the need for an effective tool tracking system.
According to the National Equipment Register’s annual theft report, the cost of lost equipment annually is over $1 billion dollars. While that represents the business economy as a whole, the cost is still deeply felt at companies of all sizes.
The reality here is that business size does not impact the need for a stronger tool tracker alongside asset management through tool tracking software, asset tags, and better tracking devices overall.
Small Tool Tracking: A Key Area for Improvement
Far too often, it isn’t the largest pieces of equipment that are at high risk for loss or theft. A stolen tool doesn’t have to even be high-tech to disappear from company property.
It can be something as simple as a pair of in-demand wireless headphones or a handheld cordless tool that has applications at home as well as in the workplace.
An equipment tracker is an obvious next step, but compliance is necessary for many systems to work. If employees opt not to engage with the tool tracking device, it can be difficult to account for the missing inventory until it’s long gone, leaving you with an inventory management nightmare.
What is RFID Tool Tracking and a look at its benefits
RFID stands for Radio Frequency Identification, and this technology actually goes all the way back to 1945. Implementing RFID tool tracking is the best way to improve the problem of tracking fixed assets, as well as taking steps to reduce fraud and theft.
Here’s why it’s so critical to turn to RFID technology for tool tracking needs:
- RFID gives a real-time bird’s eye view of all equipment, inventory, and other asset tracking components. This also reduces shrinkage opportunities.
- RFID data is accurate, far more so than manual inventory entries.
- RFID also aids in automation and traceability, two things that are growing in importance within many regulated industries.
Managing compliance is much easier by using technology, and RFID is one of the best options to implement that is cost-effective and timely.
Other Tool Tracking Solutions of Note
Researching better ways to manage any tool and equipment combination found in the warehouse or lab is important. Here are a few solutions to keep track of, along with some considerations to make with those solutions.
- The leading alternative to RFID tracking systems is Bluetooth, another standard with long-term industry adoption.
- Unfortunately, the battery life of Bluetooth is much lower compared to other solutions. If the battery gives out, so does the tracking benefit.
- RTLS (Real-Time Location System) combines multiple technologies for a “best of all worlds” approach but can hold a higher cost of implementation. The use of Ultra Wide Band signals helps reduce tool loss, but higher costs balance out this advantage.
The main question to ask when looking at what solution would work best is straightforward: what system is going to lead to the highest compliance, whether by automation or by the ease of use?
Outsource the Hassle of Tool Tracking System Implementation to Lowry Solutions
One of the best ways to move forward quickly is to outsource the implementation of better tracking. This is where Lowry Solutions excels, as they provide multi-vendor solutions that focus less on complexities and more on fast implementation.
Our extensive experience in implementing better asset management strategies for businesses in various industries makes them a clear choice for the often heavy task of implementing better options and searching for tools.
Schedule a consultation with Lowry Solutions today.