Asset Tagging – Tracking through Barcode and RFID Technologies

Introduction

Ensuring the accuracy, availability, and tracking of company assets is critical for maintaining operational efficiency and financial integrity. Whether managing physical assets like machinery, equipment, or IT assets, the ability to quickly locate and verify them is essential. 

This is where asset tagging comes into play—a method for uniquely identifying, tracking, and managing assets through the use of tags that carry distinct identifiers. Moreover, asset tagging plays a crucial role in streamlining asset management, reducing errors, improving visibility, and ensuring compliance with financial and operational standards. 

This article will explore the best practices for asset tagging, its implementation strategies, and how it can lead to more accurate asset registers and smoother audits. By understanding the value of asset tagging and how to deploy it effectively, organizations can enhance asset lifecycle management, boost productivity, and reduce risks associated with lost or misplaced assets.

What is Asset Tagging?

Asset tagging is the process of affixing a unique identifier, such as an asset number, equipment number, serial number, or a separate tag number, to an asset using nameplates, barcode tags, or RFID tags. Consequently, this identifier serves as a distinct marker, enabling easy identification and tracking of assets throughout their lifecycle.

Furthermore, the core objective of asset tagging is to provide each asset with a unique identifier that can be quickly and accurately read by asset management systems. This process allows businesses to create clear, efficient records of their assets, making it easier to audit and track their movement.

Why is Tagging of Assets Important?

Asset tagging is essential for efficient asset management, reducing errors, and improving operational control. Key benefits include:

• Accurate Asset Identification: Assigns a unique identifier to each asset, ensuring precise tracking and eliminating manual errors.
• Streamlined Asset Verification: Simplifies audits by enabling quick scanning with barcodes, QR codes, or RFID.
• Enhanced Asset Lifecycle Management: Links assets to maintenance schedules, usage history, and end-of-life planning.
• Compliance and Audits: Ensures regulatory compliance by maintaining accurate asset records.
• Loss Prevention: Reduces theft and misplacement through real-time asset tracking.
• Cost Efficiency: Lowers operating costs by optimizing resource utilization and minimizing tracking errors.

As a result, businesses can improve accountability and enhance overall operational efficiency.

Learn more on 6 Reasons Why Tagging of Assets is Important>>

A comparison between Asset Tagging and Asset Marking

Asset marking is the broader concept of assigning a unique identifier to physical assets, enabling effective tracking and management. It can be done directly on the asset (engraving, etching, or stamping) or through asset tagging (nameplates, barcodes, QR codes, RFID, BLE, and GPS tags).

While direct asset marking provides permanent, tamper-resistant identification and is ideal for assets that need long-term tracking, asset tagging enhances tracking efficiency with automated identification and real-time updates. Therefore, organizations should choose the appropriate method based on tracking needs, asset type, and operational requirements. Often, a combination of direct marking and tagging ensures both security and efficient asset management.

Asset Marking – Different Methods and their Uses>>

Feature	Direct Asset Marking (Engraving, Stamping, Nameplates)	Asset Tagging (Barcodes, QR, RFID, BLE, GPS)
Definition	Physically marking assets with unique identifiers using engraving, etching, stamping, or affixed nameplates.	Attaching external tags (barcodes, QR codes, RFID, BLE, GPS) for asset identification and tracking.
Relationship	Asset tagging is a form of asset marking, but asset marking also includes direct methods.	A subset of asset marking that uses technology-driven tags for asset identification and tracking.
Durability	Highly durable, resistant to wear, environmental factors, and tampering.	Durability varies based on tag material and attachment method; some tags may wear out or get removed.
Technology Used	Manual identification through engraved or printed markings.	Uses barcode, RFID, QR code, BLE, or GPS for automated scanning and tracking.
Automation	Low automation; requires manual reading and verification.	High automation; enables quick scanning and digital updates.
Tamper Resistance	Hard to remove or alter without visible damage.	Can be tampered with or removed, but anti-tamper tags are available.
Tracking Capability	Primarily used for identification, not real-time tracking.	Enables real-time tracking, location monitoring, and digital asset management.
Ideal Use Cases	High-value, long-life, or mission-critical assets requiring permanent identification.	Assets that require frequent tracking, audits, and real-time monitoring.
Application Method	Engraving, etching, stamping, or affixing metal/plastic nameplates.	Adhesive labels, metal/plastic tags, or embedded tracking devices.
Best Suited For	Industrial machinery, tools, permanent equipment, assets exposed to extreme conditions.	IT assets, office equipment, warehouse inventory, and movable assets that require monitoring.

How Asset Tagging automates Physical Asset Verification

As organizations scale and asset base grow in size and complexity, manual asset verification becomes increasingly impractical and error-prone. This is where automation, enabled by asset tagging, comes into play. Asset tagging—particularly through technologies such as RFID, barcodes, and QR codes—facilitates the automation of the physical asset verification process. By automating the verification process, businesses can significantly improve accuracy, reduce time spent on audits, and enhance overall operational efficiency.

Read our Practical Guide on Fixed Asset Verification>>

Here’s how asset tagging helps automate physical verification of assets:

1. Accurate Asset Identification:

   • Asset tagging automates asset identification by assigning a unique identifier to each asset, enabling quick and accurate recognition using barcode scanners, RFID readers, or mobile applications. During physical verification, tagged assets can be scanned instantly, allowing their details—such as location, condition, and ownership—to be retrieved from an asset management system in real time. This not only accelerates the verification process but also ensures that asset registers remain accurate and up to date.

2. Automated Data Capture

   • Once assets are tagged, they can be scanned using handheld barcode scanners, mobile devices, or RFID readers. Scanning automatically pulls data from the tag and cross-references it with the company’s asset register in the asset management system, eliminating the need for manual data entry. This not only speeds up the verification process but also ensures that asset records are updated in real-time.

3. Real-Time Asset Tracking:

   • In the case of RFID and IoT-based systems, asset tags can transmit data wirelessly to monitoring software, enabling continuous tracking of assets. This allows businesses to know exactly where each asset is located at any given time, making physical verification a seamless process.

By integrating asset tags with automated systems, organizations can create a fully automated asset verification process that requires minimal human intervention.

Read The Complete Guide on RFID Asset Tracking>>

 

Benefits of Tagging Assets

1. Increased Speed and Efficiency:

   • Manual asset audits can take days or even months, depending on the size of the asset pool. By automating the process, companies can perform verifications in a fraction of the time. Automated verification enables quicker identification and confirmation of asset locations, which reduces downtime and improves overall workflow.

2. Improved Accuracy:

   • Human errors are inevitable when auditing physical assets manually. Automation ensures that data is captured consistently and accurately, reducing the chances of missing or misidentifying assets. The risk of errors related to manual counting, data entry, or misplacing assets is significantly minimized with automated systems.

3. Cost Savings:

   • While there may be an initial investment in automated asset tracking systems, the long-term savings are substantial. Reducing the time spent on manual verification means employees can focus on more productive tasks, leading to increased workforce efficiency. Additionally, automated systems help reduce the costs associated with lost or misplaced assets, which can be financially draining for organizations.

4. Streamlined Compliance and Audits

   • Regular audits are a requirement for compliance in many industries. Automation simplifies the auditing process by providing instant, accurate reports that can be used for regulatory purposes. With asset verification automation, the entire audit process is faster and more accurate, which ensures that organizations remain compliant with regulations and avoid potential penalties.

How Asset Tagging helps Efficient Asset movement monitoring and Tracking

Asset tagging enhances asset tracking by enabling geofencing and real-time location monitoring using RFID tags for location tracking, GPS asset tracking, and RTLS tracking (Real-Time Location Systems). By integrating these technologies, businesses can monitor asset movement and ensure assets stay within designated zones.

• Geofencing with RFID & GPS:

  • Virtual boundaries can be set for assets, and alerts are triggered if an asset moves beyond a predefined location. This is particularly useful for tracking and securing high-value equipments 

• RFID Location Tracking:

  • Using RFID tags for location tracking, businesses can automatically detect when assets enter or leave specific zones, reducing manual effort in audits and security checks.

• RTLS Tracking for Real-Time Visibility:

  • RTLS systems provide continuous location updates, helping in indoor asset tracking for hospitals, factories, and office spaces.

• GPS Asset Tracking for Outdoor Monitoring:

  • GPS-based asset tracking ensures visibility of mobile assets such as vehicles and field equipment, preventing unauthorized movement and optimizing asset utilization.

By leveraging these technologies, businesses can strengthen security, reduce asset loss, and gain complete visibility into asset movement and usage patterns.

Read our Complete Guide to Asset Tracking Technologies>>

Challenges and Considerations in Asset Tagging Implementation

Implementing asset tagging successfully requires addressing key challenges and considerations to ensure long-term effectiveness.

• Availability of Accurate Asset Baseline/Register

  • A well-maintained asset register is essential before tagging. Incomplete or inaccurate asset data can lead to misidentification, duplication, or missing assets, affecting the efficiency of the tagging process.

Fixed Asset Register: Learn How to Create and Maintain it>>

• Choosing the Right Tagging Technology – Barcode or RFID

  • Selecting the appropriate technology depends on the tracking objectives. Barcodes are cost-effective and widely used, while RFID enables automated scanning without direct line-of-sight, making it ideal for high-volume tracking.

Read Comparison of Barcode Vs. RFID Asset Tracking – Pros & Cons of Two widely used Technologies>>

• Choosing the Right Asset Tags

  • Asset tags must be durable and suitable for the asset’s environment. Factors like material (metal, plastic, or vinyl), exposure to chemicals or extreme temperatures, and expected lifespan should be considered when selecting tags.

Understand the Key Factors to select the best Asset Tracking Tag for your organization>>

• Affixing Asset Tags

  • Proper application of asset tags requires skill to ensure longevity and readability. Organizations must decide whether to use an in-house team or outsource the process to specialists like AssetCues to ensure consistency and accuracy.

• Identifying the Right Asset Tagging and Verification System

  • A robust asset tagging system should integrate seamlessly with existing asset management software. The system must support efficient verification, auditing, and tracking of assets throughout their lifecycle.

• Maintenance of Tags and Asset Tagging System

  • Tags can wear out, fade, or become unreadable over time. Organizations should have a plan for periodic tag verification, re-tagging when necessary, and maintaining the asset tagging system for continued accuracy.

By addressing these challenges proactively, businesses can ensure a smooth and effective asset tagging implementation, leading to improved asset visibility, accurate audits, and better operational control.

How to select the most appropriate Asset Tag

Selecting the right asset tag is crucial for accurate tracking and asset management. The choice depends on four key factors: technology, material, application, and asset type.

• Technology:

  • Barcodes are cost-effective for stationary assets, while RFID tags enable real-time, automated tracking. QR codes store more data and are scanned with smartphones, whereas NFC tags are ideal for secure, close-range identification.

• Material:

  • Metal tags are durable and suited for industrial and outdoor assets, while plastic and vinyl tags are lightweight for indoor use. Tamper-evident and chemical-resistant tags are used for high-security or chemical-exposed assets.

• Application:

  • Outdoor assets need weatherproof, UV-resistant tags, while corrosive environments require stainless steel or anodized aluminum tags. High-contact assets demand rugged, strong-adhesion tags.

• Asset Type:

  • Short-lifecycle assets like laptops require removable tags, while heavy machinery needs long-lasting, durable tags. Surface type also matters—curved surfaces need flexible tags, and rough surfaces require specialized adhesives.

Selecting the right asset tag ensures durability, accurate tracking, and seamless integration with asset management systems, reducing asset loss and improving efficiency.

Read more in our recent blog “Asset Tracking Tags: Key Factors in Selecting the Best Tag”>>

Steps to Implement an Asset Tagging System

Implementing asset tagging requires careful planning to ensure efficiency and accuracy. Below are the key steps for a successful implementation:

1. Define Tagging Objectives:

   • Establish clear goals, such as improving asset tracking, streamlining audits, or enhancing security. Determine which assets require tagging based on their value, usage, and tracking needs.

2. Select the Right Asset Tags:

   • Choose tags based on tracking technology (barcode, RFID, QR, or NFC), material durability, environmental exposure, and asset lifespan. Ensure tags are suited for their intended application.

3. Integrate with Asset Management Software:

   • Link tags to a centralized asset management system to automate tracking, enable real-time updates, and maintain accurate records. Ensure compatibility with existing software.

4. Train Employees:

   • Educate staff on proper tagging techniques, scanning methods, and data entry processes to ensure consistency and avoid errors in tracking.

5. Affix Tags and Conduct Quality Checks

   • Securely attach tags in visible, durable locations. Perform quality checks to ensure proper adhesion, readability, and data accuracy.

6. Monitor and Maintain the System

   • Regularly audit tagged assets, update records, and replace damaged or worn-out tags to maintain efficiency and long-term effectiveness.

By following these steps, organizations can ensure a streamlined asset tagging process that enhances operational control and tracking accuracy.

Read more in our Comprehensive Guide on Implementing Asset Tagging System>>

Asset Tag Number – Should You Use Asset ID or Equipment ID on the Tag?

A common question in asset tagging is whether to print the asset number (or equipment ID) on the tag or use a separate tag number linked to the asset in the asset management system. The best practice is to use a separate tag number, as it enhances efficiency, flexibility, and accuracy.

• Logistical Efficiency: Any available tag can be assigned during tagging, eliminating the need to search for pre-printed tags and reducing delays.
• Minimizing Tag Wastage: Pre-printed asset numbers lead to wasted tags if assets are reclassified, unavailable, or require different tag specifications.
• Improved Identification Accuracy: Pre-printed tags risk incorrect placement, making errors difficult to fix, especially with durable metal tags. A separate tag number allows corrections in the system without replacing tags.
• Simplified Asset Changes: Asset splitting or number changes require new tags if the asset number is printed. A separate tag number avoids this issue by maintaining tag consistency while updating records digitally.

Using a separate tag number improves asset tracking accuracy, reduces waste, and simplifies logistics, ensuring seamless updates without physical tag replacements.

Cost vs. ROI of Asset Tagging

When implementing an asset tagging system, businesses often weigh the upfront costs against the potential return on investment (ROI). While the initial expenses may seem significant, asset tagging provides long-term financial and operational benefits that can greatly outweigh the costs over time.

Initial Costs: The primary costs involved in asset tagging include purchasing the tags themselves, along with any associated hardware such as barcode scanners or RFID readers. Additionally, businesses may need to invest in software to track and manage assets, as well as any training required for employees to properly use the new system.

Operational Efficiency: Despite these initial costs, asset tagging can significantly improve operational efficiency. By automating asset tracking, businesses can reduce time spent on manual inventory counts, minimizing errors and labor costs. It also facilitates quicker audits and easier compliance with regulations, which would otherwise require significant resources and time.

Loss Prevention and Accuracy: Asset tagging helps in preventing loss or misplacement of valuable assets. With unique identifiers, businesses can easily track the movement and location of assets, reducing the risk of theft or misplaced items. Furthermore, the accuracy in asset data ensures that your financial records are correct, aiding in depreciation calculations and tax reporting.

Long-Term Savings: Over time, the ROI of asset tagging becomes evident through improved asset management, reduced downtime, and better decision-making related to asset procurement and disposal. The ability to quickly locate and verify assets enhances productivity and reduces operational disruptions, ultimately leading to cost savings in the long run.

Overall, the cost of asset tagging is a worthwhile investment when considering the benefits of improved asset tracking, operational efficiency, and long-term savings.

Conclusion

Asset tagging is a crucial strategy for businesses aiming to streamline asset management, improve accuracy, and enhance operational efficiency. By choosing the right type of tag based on technology, material, application, and asset type, organizations can ensure a more reliable and efficient asset tracking system. Though the implementation of asset tagging may come with upfront costs, the long-term benefits—such as reduced errors, faster audits, better data accuracy, and cost savings—make it a valuable investment for any organization.

Overcoming challenges such as selecting the appropriate tags, ensuring proper attachment, managing data, and training staff is essential for maximizing the effectiveness of asset tagging. As businesses grow and their asset inventories increase, the need for efficient tracking systems becomes even more critical, and asset tagging serves as the foundation for a more automated and organized approach to managing physical assets.

In today’s fast-paced business environment, asset tagging offers not only a way to ensure regulatory compliance but also a competitive edge by optimizing asset management processes. With careful planning and the right implementation strategies, asset tagging can significantly improve asset lifecycle management, reduce operational risks, and ultimately drive productivity and profitability.