- December 1, 2023
- Posted by: Vimal Hemachandran
- Category: Blog
When dealing with hundreds or even thousands of physical assets within your company, it becomes crucial to have accurate information about their locations and operational statuses. Failing to do so can lead to outages and compliance issues, which in turn may have significant business consequences. Whether its computer monitors or industrial equipment, effective tracking and control of assets through the use of asset tags are paramount for your company’s overall financial performance.
Physical assets often find themselves in various situations, such as being deployed in the field, undergoing repairs, being sold, updated, removed, or even stolen. Navigating the challenges of tracing the location and condition of assets during these scenarios can be daunting. However, employing an asset management system that incorporates asset tags or labels can simplify the process of tracking and reviewing your assets.
In this blog, let’s delve into the concept of Asset Tagging in the UAE.
Asset Tagging in UAE
Asset tagging involves affixing labels or tags to assets for unique identification and real-time data tracking, including location and maintenance history.
These tags apply to fixed and mobile assets across various locations and warehouses, offering a comprehensive asset overview.
By tagging assets, you not only achieve real-time location tracking but also gather data on purchase history, maintenance schedules, and depreciation value, all stored in a digital asset register.
The asset-tracking technology market is projected to reach $36 billion by 2025, indicating a growing demand.
Asset tagging in UAE provides a flexible and scalable approach to automatically pinpointing and categorizing assets in your environment.
The Importance of Asset Tagging
Asset tagging is crucial for organizations of all sizes and industries as it enhances productivity.
Without asset tags, manual recording of asset location and history is error-prone and inaccurate.
Asset tagging eliminates the risk of human error and misidentification by instantly identifying each tagged asset.
One key advantage of using trackable tags and labels is the ability to always know the location of assets.
This information, easily accessible in an asset registry, prevents the loss of essential revenue-generating assets, be it inventory, machinery, or replacement parts. Digital tracking through asset tagging reduces the costs associated with replacing lost or stolen items.
Beyond identification, asset tagging offers additional benefits for organizations, including:
Increased employee and equipment efficiency
Minimized equipment downtime through improved planning
Theft prevention and enhanced product security
Assistance in managing potential compliance needs
Best Practices for Asset Tagging
A. Identify Asset Type and Category
The initial step in asset tagging involves categorizing assets by type and category. If you have an existing tracking system, ensure a consistent classification system. For new implementations, establish a categorization system based on factors like department, cost, or usage.
B. Assigning Unique Identification Numbers
After identifying the type and category of an asset, the next step is assigning a distinctive identification (ID) number. This unique ID plays a crucial role in managing processes such as reordering, maintenance, and accounting. It ensures differentiation between individual assets of the same type and category.
C. Choose the right tag based on your needs
Different asset tags have unique qualities, so consider factors like durability and security features. Common tracking tools include:
Barcode: Simple and cost-effective but requires a straight-line scan.
QR Code: Known for fast readability and higher storage capacity.
RFID: Small electronic tag that works without direct line of sight.
D. Provide fundamental details regarding the asset
When applying tags, ensure accurate data entry is aligned with the specific asset. This practice facilitates the creation of comprehensive profiles for each item accessible through an asset tagging system. Additionally, during the tagging process, it is crucial to record essential information including:
Manufacturer or provider
Date of purchase
Condition and value
E. Apply tags to assets
After preparing the tag, it is essential to affix it to the corresponding assets. The attachment method depends on the type of asset and the nature of the label. Some asset tags utilize mechanical attachments, while others rely on pressure-sensitive adhesive. Certain tags even provide both attachment options. When faced with the choice between mechanical or adhesive attachments, select the one that best suits the asset or aligns with company policies.
F. Utilize asset management software for tagging.
Incorporating asset management software stands as a paramount best practice for efficient asset tagging. Leveraging software tools in conjunction with asset tagging simplifies the process, reducing complexity.
This approach grants access to a wealth of valuable information, enhancing asset productivity and facilitating more effective management. Additionally, utilizing data analytics derived from this information empowers informed decision-making, steering clear of passive assumptions.
G. Enforce quality and verification processes
Concluding the asset tagging process involves implementing internal mechanisms for tagging upcoming equipment. Determine who will create new tags, instruct the team not to relocate assets without prior registration, establish measures to prevent unauthorized changes, and integrate IDs across all organizational software, including maintenance management systems.
Carvy Consultants to Assist!
When you are prepared to unlock the complete capabilities of asset tagging for your business in Dubai, consider partnering with Carvy Consultants. Our proficiency and assistance will guide you through the intricacies of asset management, guaranteeing that your business maintains its competitiveness in the dynamic Dubai market.