| March 2022 |
It is essential for a company to maintain an overview of where all work assets are, in order to be able to use them in work planning, but also to monitor the operational status. And although they sound similar, asset tracking and inventory tracking are very different. Asset tracking involves the process of monitoring the value of physical work assets owned by a company, with crucial details on each asset, such as its location, owner/user, maintenance schedule, inspections, etc. Inventory tracking, on the other hand, is associated with the accurate tracking of items held in stock for sale to customers.
Both categories have unique advantages and challenges when it comes to their management. Below is a chart outlining the key differences between these two systems...
Before the various types of software and technology were developed to manage assets, there was only one way to track moveable assets: pen and paper! Yes it is true... Companies used pen and paper as an early asset tracking system by keeping logs of their assets. They kept track of when something was signed off, who it was released to or when it could be returned, and more. This system quickly became a thing of the past when the invention of computers swept the world. From here on, tracking and managing assets became easier thanks to spreadsheets and databases replacing the traditional paper-based tracking system. That said, while computers certainly helped with management, people still had to rely on counting assets and entering information into the system themselves.
Today, ERP software is still a common option as an asset management tool. More than 80% of companies currently implement one. Although it is widely used, ERP software has the disadvantage of not being very efficient in tracking individual items, but instead is better suited for tracking a large number of goods (i.e. shop inventory that is intended to be sold).
With the implementation of mobile computing, the industry revolutionised again, as these devices could now easily travel to assets, dramatically improving the process. These robust handheld devices - integrated computers with a connected laser scanner - work without an internet connection and can quickly track individual items.
Today's smartphones are also playing a role in changing the industry thanks to their high-resolution cameras and the ability for workers to use an app on their smartphone to scan and contribute to the tracking system.
As we mentioned earlier, the pen-and-paper method was the first method used for tracking corporate assets when no other technologies were available. Although this is the most basic method of all, some organisations still rely on it. Although it is relatively easy to track assets with this method, it has more disadvantages than advantages as employees have to spend a lot of time looking for information about assets, which affects productivity.
Although it is almost as simple as the pen-and-paper method, using the spreadsheet approach has some advantages, such as being easily accessible to multiple employees and being much quicker to search. While giving many employees access to the spreadsheet is a convenient feature, it can also potentially cause problems, such as incorrect data being entered on an asset due to too many employees filling out the spreadsheet.
This type of technology was a huge advance because it was very reliable and effective for tracking portable work equipment. Barcode tracking first became commercially available in the 1970s, but it is still a very versatile tool today. Barcodes are preferred because they are cheap, fast, easy to use, accurate and can be read by multiple types of technology. A major drawback is that you have to see them to scan them, which can be difficult if the barcode is not easily accessible.
RFID is based on radio frequency chips or tags that, once scanned, send the details of the asset to the scanner. Although the technology is similar to a barcode, RFID is a significantly more advanced option that offers some advantages that barcodes do not. Remote scanning, flexibility and the ability to scan multiple objects are some of the key advantages of this method over the barcode method. RFID is more expensive compared to barcodes, it uses a limited number of scanning devices and it also has a higher chance of user error due to a missed scan or scanning an incorrect asset.
NFC and RFID technology are very similar; however, NFC does not rely on dedicated scanning devices to do the job. Instead, employees can simply use their smartphones to track assets and inventory. Convenience, ease of use and efficiency are the main advantages of this method. One drawback that should be noted, however, is that the scanning range for this method is minimal (only a few centimetres), so it cannot be used from a distance like some of the other methods already mentioned.
This method is a great solution for short-range situations where the target asset remains in motion within the range of devices that can receive its signals. BLE tags are inexpensive and can offer a battery life of up to 10 years, making them an attractive option if you need to track a large number of corporate assets located within a tight infrastructure grid.
GPS technology makes asset tracking easy thanks to satellite systems that enable triangulation of a device's position on the surface of the earth. Each device receives signals from the satellites, which determine the precise location of an asset, much like positioning technology for mobile phones. A major disadvantage of GPS is that it can be unreliable in different environments where a clear signal to multiple satellites is not available.
Options for this type of technology ensure long battery life and reliable connectivity over long distances for asset trackers. Different types of technologies include narrowband IoT (NB-IoT), LTE-M, Sigfox and LoRa [source].
LPWAN tags are more expensive than BLE tags, but they can operate without nearly as much infrastructure. NB-IoT tags, for example, connect directly to the mobile network instead of needing a gateway. This technology is great for periodic check-ins; however, it is not useful for continuous connectivity for real-time tracking.
Have this blog answered your questions and are you ready to talk to us about an asset tracking solution for your business? Call us for an exploratory meeting: 03 289 55 35, or contact us online below. We'll explain how tracking technology can work for you, answer your questions and send you a no-obligation proposal that's 100% tailored to your needs.
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