Asset tracking and inventory management are terms that are sometimes used interchangeably, but there are critical differences between these functions and the software used to improve each of these applications. Both types of solutions are focused on improving resource optimization and reducing costs. But while both asset and inventory tracking and management systems involve tracking items, the difference between inventory management and asset tracking lies in how those items are tracked and — more importantly — why they are tracked. Generally speaking:
The software used for asset management can range from very straightforward, such as a small barcode application, to very complex, like that of a large RFID implementation involving hundreds of fixed readers and automatic real-time tracking for multiple asset types.
- Assets = what you own
- Inventory = what you sell (or consume)
Asset Tracking
Asset tracking is focused on computers and software (aka: IT assets), tools, machines, equipment, vehicles, important documents, furniture, and other items that companies use internally for their own operations or that are a part of their manufacturing output. Assets often fall under capital expenditures, and there are a fixed number of assets at any given time.Benefits of Asset Tracking
Asset tracking systems help companies reduce asset auditing efforts while improving asset inventory accuracy to nearly 100%. This produces substantial savings in labor costs, unnecessary equipment losses, and subsequent duplicate purchases. When the assets being tracked are tools or machines involved in the production of final goods for sale, the value becomes one of increased quality and improved end product, happier customers, and improvements to the bottom line. When important documents are being tracked, losing a single file could have drastic legal or financial consequences. In this scenario, the value of a modern asset tracking system is equally important to that of quality control/assurance in manufacturing operations.Implementing Asset Tracking
All these benefits result from a business’s ability to better determine where each asset is, who used it last, when it was last serviced or calibrated, when it was last repaired, where it should be stored, what condition it is in, and when it will need to be replaced. Barcodes, RFID tags, and serial numbers can be used to track items, and their condition or location can be updated in real-time or on a daily/weekly/annual schedule, depending on the application.The software used for asset management can range from very straightforward, such as a small barcode application, to very complex, like that of a large RFID implementation involving hundreds of fixed readers and automatic real-time tracking for multiple asset types.