Asset Identification

What is Asset Identification?

Asset Identification is a crucial process that enables organizations to uniquely identify various assets within their inventory. This identification is based on known identifiers and information about these assets. It involves creating a data model, methods, and practices to distinguish assets effectively.

Asset Identification is pivotal for businesses managing diverse fixed or movable assets and is an essential part of an efficient asset tracking system.

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Why is Asset Identification Important?

Asset Identification carries immense significance for organizations for several reasons:

  • Compliance: Incorrect labeling or duplicate labels can lead to compliance issues. Asset Identification ensures that assets are labeled correctly, reducing the risk of compliance violations.
  • Preventive Maintenance: Properly identified assets enable organizations to schedule and perform preventive maintenance promptly, ensuring optimal performance and reducing downtime.
  • Security: Effective Asset Identification safeguards assets against theft or loss. It provides a clear record of asset usage and movement, aiding in tracking and recovery efforts.
  • Financial Reporting: Asset Identification is crucial for accurate financial reporting. It helps in reporting asset depreciation, allowing businesses to make more informed financial decisions.

How to Implement Asset Identification?

Implementing Asset Identification requires a systematic approach. Here’s a step-by-step guide:

  • Define Asset Identification Methods: Choose suitable methods for identifying assets. The most common methods include asset tags, barcoding, and Radio Frequency Identification (RFID).
  • Asset Tags: Asset tags, also known as asset labels, are widely used for asset identification. These labels often contain unique serial numbers, making them ideal for tracking assets. Materials like foil, aluminum, polyester, or vinyl are used to create asset tags.
  • Barcoding: Barcodes assigned to assets provide a unique identification number. Asset data, including maintenance schedules and warranty information, can be stored in asset tracking software, simplifying asset management.
  • RFID: RFID asset tags offer an alternative to barcoding. Unlike barcodes, RFID tags don’t require a direct line of sight to be scanned. However, they are more expensive in terms of both tags and readers.

Asset Identification Best Practices:

To maximize the benefits of Asset Identification, organizations should consider the following best practices:

  • Prioritize high-value assets, including those that depreciate.
  • Label movable assets, items requiring regular maintenance, and IT hardware.
  • Implement an asset tracking solution to eliminate manual data entry and improve reliability.

Real-Time Benefits of Asset Identification

Implementing effective Asset Identification methods offers several real-time benefits:

  • Enhanced Visibility: Asset Identification, when paired with tracking tags, provides complete visibility into asset location, even outside business premises.
  • Usage Records: Organizations can maintain records of asset usage and movements, aiding in asset maintenance, scheduling, and accurate financial reporting.
  • Depreciation Reporting: Asset Identification simplifies asset depreciation tracking, enabling businesses to report more accurate financial data for tax purposes.
  • Security: Proper Asset Identification reduces the risk of asset theft and loss, as it enables organizations to take immediate action when assets move outside designated areas.

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