Just about every business owns a variety of assets—investments like machinery, equipment, and technology. But keeping these assets organized isn’t always easy. That’s why so many companies rely on asset tagging to stay on top of all their high-value inventory.
In this article, we’ll define asset tagging then discuss what information you should print on an asset tag. We’ll also talk about what kind of assets ought to be tagged and then walk you through how to tag your inventory. Finally, we’ll discuss how the right inventory management software can help you streamline your asset tagging strategy.
What is asset tagging?
Asset tagging is an inventory management strategy that requires affixing labels or “tags” to assets. Each tag identifies an individual asset and may display additional information about the item as well. An asset is defined as any piece of inventory not expected to be converted into cash within 12 months.
So, what is an asset tag? While asset tags are usually small and feature key details like serial numbers and item names, your business can customize the tags to include more information. Alternatively, you could link your asset tags to a barcode, QR code, or serial number that provides details about the item.
Some details you may want to include on your asset tags:
- Current location
- User history
- Item description
- Depreciation history
- Maintenance reports and schedules
No time to read this article now?
Get Asset Tracking 101 Now!
Tracking 101 Now!
Learn about three different asset management systems
Find out exactly what to track on your inventory list
Discover how you can use simple technology to save time, money and stress
What are the benefits of asset tagging?
There are lots of benefits of asset tagging, including loss prevention, faster inventory counts, and tighter inventory control. Regular asset tagging can also help keep your business running more productively and profitably. Here’s a little bit more detail about some of the top benefits of asset tagging.
1. More effective loss prevention
By keeping your inventory organized and tagging your most valuable assets, you can help reduce inventory loss in a variety of ways.
For starters, a more organized inventory management system affords companies better oversight of their investments. And some businesses take loss prevention to the next level, adding RFID tags or other anti-theft tags to their assets, too.
2. More efficient inventory counts
Whether your business conducts many inventory cycle counts or one year-end inventory count, an asset tagging system can make audits significantly faster. That’s because asset tagging not only forces you to get organized, but also helps you create an asset tracking system your company uses every time inventory changes hands.
By using an inventory app like Sortly during inventory audits, your tagged assets can be counted quickly. In fact, with the right inventory software, you can track your assets perpetually—instead of physically counting them every day, week, or month.
Related: Perpetual vs. Physical Inventory: What’s the Difference?
3. Tighter inventory control
Inventory control is the practice of having just enough inventory to meet customer demand without overordering. And when practiced optimally, inventory control can save just about every business tons of time, money, and stress.
By asset tagging, your business knows what it has on hand and where to find it—fast. That can make all the difference between a profitable business versus one that’s losing money on high-value items it really doesn’t need.
4. A more efficient business
All in all, companies that track and tag assets tend to run more efficiently than those that don’t. That’s because companies that understand, organize, and manage their inventory can find what they need in a hurry—and know well ahead of time if something is out of stock, falling out of warranty, or set to expire.
What assets must be tagged?
Ideally, your company should tag all assets across every location, including storage and warehouse facilities. Some assets that are ideal for tagging include ultra high-value equipment, such as medical devices, computers, and machinery. You’ll also want to tag assets that are frequently moved around to different locations or checked in and out.
The purpose of asset tagging is to keep an eye on everything you’ve got. And while tracking and tagging every last asset would be great, it’s not always a possibility for all businesses. Your company may choose to only tag assets over a certain value—and that’s okay, too.
How to tag assets
There are four main steps when tagging assets: assigning each asset a unique ID, selecting a tag, listing item details about each asset, and then physically “tagging” the asset.
Whether you choose to tag every asset on your inventory list or just a vital few, this is a great opportunity to get organized. We recommend beginning an asset tagging project at the same time as an inventory audit, such as a cycle count or a year-end inventory count.
Step 1: Assign a unique ID
In asset tagging, each asset needs a unique identification number such as a serial number. An SKU won’t do the trick—SKUs are shared by all identical items, whereas a truly unique serial number is different for every item.
Step 2: Pick a tag
You can pick an asset tag from a variety of options, including GPS trackers, RFID tags, barcodes, and QR codes.
In some cases, you’ll also need to select the size, style, and material of the asset tag. Many businesses prefer to use a heavy-duty plastic or metal that is resistant to damage.
Step 3: Choose your details
While asset tags always include a unique identifying number or code, you can choose to add other information to your asset tag if you wish. This can include anything from condition to value to a maintenance schedule.
Alternatively, you can add a barcode, QR code, or other data-rich code to the asset tag. When using an app like Sortly, you’ll be able to scan these codes to instantly reveal more information about an item.
Step 4: Affix your tag
Whatever tag you’ve selected and whichever information you’ve decided to display, the final step in asset tagging is physically affixing the tag to your asset.
To ensure your asset tagging system helps keep your company organized long-term, verify that your inventory management system and your asset tracking system are both up to date and in sync.
Sortly is a top-rated inventory management software solution designed to help businesses keep track of assets across multiple locations. Perfect for both large and small businesses, Sortly’s intuitive interface can help your company handle asset tagging and management and get organized for good.
Plus, features like an in-app barcode scanner, a custom QR code generator, and important alerts and reminders can help make the most tedious parts of asset tagging and tracking a breeze.
Ready to get started? Start a free, two-week trial of Sortly today!