Asset Tagging Best Practices
Asset labeling standards and best practices
Asset labeling (asset tagging) involves assigning a unique identifier to valuable items and equipment. This process usually relies on specialized labels. The tags allow you to track individual pieces of equipment, create records of use and maintenance, communicate vital use requirements, and log locations (for movable assets).
Asset tagging requires specialized labels that can withstand warehouse or manufacturing floor conditions. They should be tamper-proof to limit the risk of fraud or theft and contain unique identifying information, such as a barcode.
Asset labels limit loss and help organize repairs, maintenance and replacements in complex environments. Business warehouses, large retailers, hospitals, corporate offices and logistics companies can all benefit from standard labeling practices.
Benefits of asset labeling
Asset labeling brings different benefits to companies and organizations. Here are the reasons to improve asset tagging practices.
- Maintenance tracking: Labels help record maintenance history. Scheduled tune-ups can help avoid costly repairs and equipment breakdowns and limit the chance of premature replacement.
- Compliance: Asset labels can help log inspections, repairs and maintenance necessary to comply with safety regulations. Fire suppression systems are examples of equipment needing regular tests and inspections.
- Fraud and theft prevention: Labels provide a location history for movable assets. The tags make tracking easier and show you which employees are responsible for assets at all times. The data trail can help with investigations and deter fraud and theft.
- Asset management: Asset management involves centralizing information from labels on specialized software. In addition to maintenance history and loss prevention, the program can help with resource planning and asset allocation.
McKinsey and Company found that 90% of companies recognize the value of data analytics, but many spend too much time obtaining and organizing data. Labeling systems and asset management software can automate information collection and organization. Not only does this help with analytics, but it can also streamline asset and inventory audits.
Challenges of asset labeling
A poor plan, low-quality labels and other issues can keep the advantages of asset tagging out of reach. Here are the challenges you need to overcome for proper asset labeling.
- Tag quality: Asset labels need to stand up to the environment. They cannot wear or peel off due to conditions or excessive handling.
- Setup time: It can take time and employee hours to affix labels to tens of thousands of assets.
- Accuracy: Each label needs a unique identifier. Incorrect numbers or barcodes can create inaccuracies in the system.
- Integration with existing systems: Tagging may need to work alongside existing tracking and data-collection systems. You’ll need to integrate the new system with the old one and standardize all labeling on the same system.
- Different asset types: Different equipment and systems need unique labels containing the necessary data. For instance, the information you need for a computer is different from manufacturing equipment.
Companies may also struggle to balance necessary information with security. Labels need to be easy to read and provide necessary data to asset management software. However, you want to secure sensitive information and ensure no one can change labels to influence audits or conceal theft.
What information should be on labels?
Label information may vary slightly depending on asset type, operations and processes. Most asset labels contain some or all of the following data.
- Location
- Maintenance schedule
- Repair record
- Inspection history
- Deployment date
- Serial number or other identifier
The label could also have information about acceptable uses for the asset.
Types of labels
There are different types of labels suitable for various types of assets or uses. Here are the most common asset tags and labels you may find in a company.
Label providers may also offer customizable asset tags that meet your exact size, information or security requirements.
Purposes of different labels
The best choice for an asset label depends on how you plan to use it. Here are the most common purposes for asset labels.
- Individual identifiers for equipment: Metal tags and equipment nameplates are unique identifiers. You can use them to track equipment, log use, and record maintenance and repairs.
- Tracking: RFID tags can send over-the-air signals to data-collection devices. These tags help track movable assets.
- Data collection and information access: A barcode and scanner system can collect and send information to asset management software, providing access to all the information associated with that asset.
Tamper-proof labels provide an extra layer of security to combat fraud, theft or employees trying to influence audits or inspections. These labels tear into tiny pieces, making it difficult for an individual to remove the label without leaving a trace.
How to categorize your equipment
Careful planning ensures you avoid future corrections to the labeling system. An effective strategy for asset tagging starts with creating categories for your equipment.
- List assets: The first step is to assess all the equipment in your facilities. These items could range from office furniture and desktop computers to manufacturing or safety equipment.
- Define categories: An overview of the first list could reveal obvious categories. You may create categories by location, use, department or function. You can also break categories down further.
- Add requirements: You can also categorize equipment according to operational requirements. For instance, you can group equipment requiring software updates into one group and items needing physical maintenance into another.
A final consideration is the type of label needed for each category. For example, metal tags may be necessary for industrial settings, while barcode stickers could work better in an office environment.
How to establish standards
Establishing standards ensures future labeling efforts will fit within your system. You want any employee responsible for affixing labels to understand the correct process. Failure to follow the standards could result in a disorganized system that does not allow easy tracking and record-keeping.
Here’s how to establish standards.
- Standardize label formats and information for each asset category.
- Create rules for the placement of labels. They should ideally be in the same place as each item in an asset category.
- Define the label type needed for each category or location.
- Write a guide for securing labels for assets. For instance, you might direct labelers to clean and dry the surface before affixing barcode stickers.
You should also list the requirements for changing the labeling system. For instance, you could stipulate that new label types work with your scanner and asset management software.
How to uptrain employees
Employees will ultimately be the ones applying, reading and maintaining labels in the workplace. You need to train them to manage and use the system.
- Put the best practices for the system in writing.
- Explain the purpose for the labels and categories so employees grasp their value.
- Demonstrate the system to employees. Staff members can show how to use scanners, log maintenance records using label identifiers and respond to safety labels.
You also need to document the process. Employees may need to refresh their knowledge later. You can provide documentation so that they have a reference.
Regularly conduct asset audits
An asset audit involves counting and inspecting equipment and other items used in company operations. This process ensures the actual status of assets is accurately reflected in data and records.
The process requires the following steps.
- Collect records and data.
- Inspect assets and define the location, status, label information and other identifiers (color or size, for example).
- Verify that the information in your records matches the label as well as the physical status and description of the asset.
An annual audit can assess the effectiveness of the labeling system, reveal inconsistencies and expose tampering or fraud. It can ensure your well-planned labeling system still produces the benefits you expect.
