MASTER ASSET TAGGING | KNOW WHAT YOU OWN
- An average 200 room hotel reports around 1,500 equipment failures a month (Infraspeak.com)
- Employee theft in the US across all industries amounts to c. USD 200bn per year (Niehoff & Paul)
- Up to 65% of fixed assets are incomplete, inaccurate, or missing, while up to 30% of fixed assets are no longer owned (FMIS.co.uk)
What is asset tagging and why is it so useful?
|Asset Tag||Description||Advantages & Uses||Unit Price|
|Polyester||Metallized polyester tags – logos and asset ids can be printed on them||Durable, versatile, and cheap. Can be used both indoors and outdoors||$0.10|
|Barcode||Barcodes which are printed on the tag, which allow for easy scanning||Easy to access asset information by scanning||$0.24|
|Aluminium||Typically used as nameplates, for product identification and equipment tags||Long-lasting and durable – immune to chemical and weather exposure||$0.50|
|Tamper-proof||Any tampering becomes evident, as it leaves a mark on the equipment when the tag is removed||Useful for assets that are prone to theft – used to track evidence of tampering||$0.20|
|RFID||Electromagnetic fields are programmed with asset information. RFID readers read the information from electromagnetic waves that are generated by the RFID chips||Less need for manual intervention, thus saving on time and effort||Up to $1.00|
|Bluetooth||Active tags are tracked using Bluetoothbased relays which transmit signals to a central server||Provide the ability to track assets in real-time||Up to $15|
Key steps for an asset tagging project
STEP 1: IDENTIFY STAKEHOLDERS AND PROJECT OBJECTIVES
- Meet with Asset Owners and End Users to identify the key stakeholders.
- Determine project objectives to secure buy-in and ensure project delivery is in line with expectations. Objectives include audit compliance, risk management, loss prevention, improved reporting.
STEP 2: ESTABLISH ASSET TAGGING CRITERIA
- Establish criteria used to identify which assets will be tagged – this could be a monetary threshold or specific categories of items.
- Note that there will be a trade-off between the threshold value and the complexity of the project.
STEP 3: CREATE ASSET REGISTER
- This will contain the company’s fixed assets/assets that need to be tagged plus data that needs to be embedded in the Tag. (e.g. unique identifier, description, serial number, purchase price, location, warranty expiry date).
- Asset Register will be uploaded to Asset Tagging software ahead of physical tagging process.
STEP 4: PHYSICAL TAGGING PROCESS
- Identify type of label required for each asset, with consideration given asset value, location, size, and print tags.
- Coordinate with End User to ensure access is provided to the Tagging team and minimize business interruption.
- Fix tags to each asset and bring the asset live
STEP 5: END USER ADOPTION
- The Finance team is concerned with financial tracking of assets for reporting, audit, and risk management.
- The Operations team (Owner or 3rd party operator) will use the software for preventive maintenance and physical inventory.
Points for consideration
Thought should be given to identify which assets need to be physically tagged – to a certain extent this will depend on the business’ key objective. If the primary objective is loss prevention, high value items which are easily misplaced and/or contain sensitive information should be prioritized. Setting a sensible monetary threshold will ensure that the cost of the tagging project remains reasonable.
How to secure end user buy-in
- Typically, the owner’s finance department will be responsible for the financial tracking of assets for reporting, audit and risk management purposes. They will manage the property’s asset register, organize the initial asset tagging exercise, and carry out periodic audits or stock-taking exercises.
- The Operations team (Owner or 3rd Party Operator) will primarily use the asset tagging software for preventive maintenance and physical inventory taking.