Asset tagging isn’t just about labeling—it’s about unlocking visibility, control, and strategic oversight across your organization’s most valuable resources. Whether you’re managing IT equipment across multiple job sites or tracking fixed assets in a single facility, the right asset tagging system can reduce loss, streamline audits, and ensure compliance with industry standards.
What are the benefits of asset tagging?
Asset tagging has tons of benefits, including improved loss prevention, more streamlined inventory counts, optimized inventory control, and more productive business practices. Here’s a bit more about each of the four benefits:
More effective loss prevention
Tagging physical assets helps prevent loss by creating accountability and visibility. A well-organized asset tracking system enables oversight and can incorporate tamper-evident or RFID tags for added protection.
More efficient inventory counts
Tagged assets can be scanned and verified quickly using barcodes or QR codes, reducing audit time and human error. With real-time tracking via a mobile app, businesses can shift from manual counts to automated, perpetual inventory management.
This shift allows businesses to access always-updated, real-time information about their assets from anywhere, at any time.
Tighter inventory control
Asset tagging supports more cost-controlled and profitable asset buying strategies by helping teams know precisely what’s available and where. This reduces the disorganization that leads to overordering and improves resource allocation across moveable assets and high-value machinery and equipment.
A more efficient business
Organizations that tag and track assets proactively tend to operate with fewer delays, better planning, and stronger customer service. Asset tagging enables teams to anticipate needs, monitor warranty status, and avoid costly surprises.
What assets must be tagged?
Unless you’re planning to tag every asset your business owns, you’ll need an asset tagging strategy to help you prioritize the right assets. Though the specific types of priority assets will vary depending on your business, it’s generally recommended to focus on high-value or frequently used assets, especially those that move between locations or departments. This includes laptops, IT assets, healthcare equipment, and tools that are checked in and out regularly.
Businesses may also choose to tag only assets above a certain price threshold, depending on their operational goals and bandwidth.
How to choose an asset tagging system
Outline your tagging objectives
Start by identifying what you want your tagging system to achieve. Common objectives include:
- Compliance (e.g., ISO 55001)
- Loss prevention
- Maintenance tracking
- Audit readiness
- Visibility and tracking goals as determined for an asset’s lifecycle
Evaluate tagging technologies
| Tag type | Pros | Cons |
| Barcode
QR code |
Low cost, easy to print, can work with existing smartphones and tablets | Requires line-of-sight scanning, although this works for most teams in non-retail settings |
| RFID | Fast scanning, no line-of-sight needed | Expensive, not supported by all inventory management software |
| NFC | Tap-to-scan convenience | Limited range, device compatibility |
For a deeper comparison, reference Sortly’s guide to RFID vs. barcode technologies.
Choose the right software
Look for asset tracking software that supports custom fields, mobile scanning, and real-time updates. Your platform should allow users to generate and print asset labels, upload photos, and track asset data like depreciation, maintenance history, and location across mobile devices.
If you’re still using an asset tracking spreadsheet, make sure it’s as optimized as possible for your asset tracking needs. Ideally, you’ll be able to bulk upload this spreadsheet into asset tracking software if and when you decide to make the switch.
How to tag assets
Step 1: Assign a unique ID
Each asset needs a unique identification number, such as a serial number. SKUs won’t suffice. Each tag must correspond to a single item and serve as a unique identifier.
Note that some software, including Sortly, will do this automatically.
Step 2: Pick a tag
Choose from barcodes, QR codes, RFID tags, or GPS trackers. Consider durability, scannability, and environmental conditions when selecting tag material and format, especially for harsh environments.
And keep in mind that some solutions, like barcodes and QR codes, won’t require extra equipment to utilize, making them a good choice for businesses where items (and people) move around.
Step 3: Choose your details
On the physical tag, if necessary, include key asset information such as condition, location, and maintenance schedules.
QR codes and barcodes can link to deeper records in your asset management software, offering you space to attach warranties and manuals and keep track of asset depreciation.
Step 4: Affix your tag
Use durable materials and ensure your asset labels are readable and securely attached. Confirm that your asset tracking system is synced with your inventory database and mobile app.
Measuring the effectiveness of your tagging strategy
Once you’ve created an asset tagging strategy, you’ll want to update it in your standard operating procedure (SOP). While you do this, consider how you’ll track the effectiveness of this new strategy. Here’s how:
Map your strategy to specific asset management requirements
If necessary, use ISO 55001 principles to ensure your tagging system supports operational control and performance measurement. Your tags should help meet asset management objectives, enable accurate reporting, and support continuous improvement.
Track the right KPIs
If you’d like, consider monitoring metrics such as:
- Audit accuracy
- Tag read-rate
- Asset recovery rate
- Maintenance compliance
- Time to locate assets
Use tagging metrics to drive continuous improvement
Review tagging performance regularly to identify gaps, improve workflows, and reduce asset-related delays. Use insights to refine your tagging strategy and align with evolving business needs. Once you understand what’s working and what’s not, update the SOP.
How Sortly helps track inventory assets
Sortly makes tracking assets easy and convenient. From any device, you can generate and print custom barcode and QR code labels, scan assets via smartphone or external devices, and track asset details in real time. Your team can upload photos, add custom details, and monitor asset condition, location, and usage history across multiple sites. Sortly also supports check-in/check-out functionality for movable assets and IT equipment.
Whether you’re tagging assets for compliance, audit readiness, or operational efficiency, starting with the right inventory software is key. Learn more about how Sortly can help your business track assets and inventory more easily and start your two-week free trial of Sortly today.
