Here‘s Why You Should Be Using Asset Tags: An Expert Consultant‘s Advice

As an entrepreneurship consultant devoted to helping small and medium-sized businesses thrive, I cannot stress enough the importance of implementing an asset tagging system. Far too many owners do not realize the significant hidden costs from failing to closely track their equipment, inventory, and other assets. In this comprehensive guide, I‘ll demonstrate exactly how the right tags can streamline operations, prevent losses, and boost your bottom line.

Automate Equipment Monitoring to Avoid Productivity Losses

Asset tags give you real-time visibility into equipment location and status. Active RFID tags in particular enable automated tracking instead of manual cycle counts. This saves your staff countless hours not having to search for misplaced items. In a recent survey by the National Federation of Independent Businesses, 76% of respondents reported spending upto two hours per week chasing down missing tools or equipment. That translates into substantial wasted labor – a cost you can ill afford.

Specific examples of assets to tag include:

  • Tools: wrenches, power drills, diagnostic devices
  • Electronics: phones, computers, tablets, printers
  • Furniture: desks, chairs, filing cabinets
  • Appliances: refrigerators, microwaves, coffee makers
  • Heavy Machinery: forklifts, conveyor belts, loaders

As your inventory grows, attempting to manually track hundreds or thousands of assets across multiple locations would be a logistical nightmare. RFID solutions can track assets in real-time as they move in, out, and even across your facilities. This prevents critical items from falling through the cracks and immediately alerts you if certain equipment leaves the premises unexpectedly.

Set Up Maintenance Schedules to Extend Lifespans

According to Consumer Reports, consistently deferring preventative maintenance causes equipment failure rates to double. This leads to more unexpected breakdowns and shortened replacement cycles. The U.S. Department of Energy estimates that establishing preventative maintenance plans can extend capital asset lifespans by a minimum of 20%.

Asset tags paired with maintenance software allow you to set up ideal servicing and repair intervals based on factors like:

  • Date of manufacture
  • Total hours/usage
  • Known failure points

By linking detailed maintenance documentation to each asset‘s unique ID tag, you preserve institutional knowledge. Workers instantly know necessary upkeep steps, common breakdown issues, warranty coverage, and more. This simplifies troubleshooting, facilitates faster repairs, and aids with inventory management decisions.

Leverage Theft Prevention Systems to Avoid Inventory Losses

Inventory shrinkage from theft, fraud, expiration, damage, and administrative errors costs U.S. retailers over $50 billion annually according to the National Retail Federation. Yet despite these staggering losses, only around 60% of small businesses take active measures to prevent inventory loss.

Modern asset tagging systems deter theft through visibility. Signs warning that premises are monitored serve as a first line of defense. RFID tags can trigger exit door alarms if merchandise leaves the premises unauthorized. GPS trackers on delivery trucks monitor supply chain routes for deviations.

By linking scanned inventory counts to backend analytics, you pinpoint shrinkage root causes. Data reveals if losses stem from:

  • External theft
  • Internal fraud
  • Warehouse mismanagement
  • Supply chain issues

Armed with these insights, you implement appropriate security upgrades, employee training programs, warehouse optimizations, and carrier vettings. Over time, boosted accountability drives significant cost reductions.

Final Takeaways

The upfront investment in asset tags pays long-term dividends through heightened visibility, controlled expenses, and operational efficiencies. To recap, key benefits include:

  • Automated equipment tracking
  • Optimized maintenance routines
  • Reduced inventory losses
  • Improved regulatory compliance

Reach out with any questions as you evaluate tagging systems. With the right tags and software to leverage the data, you gain an invaluable asset oversight foundation for scaling your business.