How to keep track of tools and equipment

Managing tools and equipment is challenging for facility managers. They oversee a diverse collection of assets constantly moving from place to place. They also have to deal with theft, loss and repairs.

There’s also a lot at stake if facility managers fail to keep track of company resources. Without the right equipment on hand, workers won't be able to complete work on time, or they’ll need to rely on tools that aren't as safe or effective. Ultimately, a lack of tools can hurt overall job quality and efficiency.

Facility managers address these challenges with effective asset tracking and management solutions. A comprehensive plan can help locate equipment and establish a chain of custody to define responsibility and deter theft.

Here’s a look at the strategies and systems best suited for tracking tools and equipment.

Create an inventory spreadsheet

An inventory list is the first step in asset management. This equipment roster defines the items you need to track and maintain. You can use spreadsheet columns to describe costs, acceptable uses and identifiers.

A well-structured spreadsheet should include basic information like item names, serial numbers and physical descriptions. Accurate tracking requires differentiating each piece of equipment from other similar items. While you can categorize tools, you need identifiers for each one to establish custody and location.

Spreadsheets can also include a maintenance schedule, inspection dates and warranty information. This data allows facility managers to check the availability and status of each tool to ensure it's ready for use.

Create a central list using a tool-tracking system

Spreadsheets are a starting point for tool and equipment tracking. However, they do not have the features needed to track equipment for a busy operation.

You can take the next step by transferring tool and equipment lists to tool-tracking software. These programs are often cloud-based, meaning people on the job site and office can see the information in real time and add data when moving, requesting or repairing equipment.

If you affix barcodes or QR labels to equipment, a quick scan can update location, use and custody data. These automation features make software more efficient than a spreadsheet, which requires manual updates and constant communication with the person charged with data entry.

The software also provides better access and information sharing. Anyone with login credentials can see the latest location of equipment and look at maintenance data to ensure the tools are ready for use. These systems often have mobile applications for access for workers on job sites.

Organize items by category

A central platform for tool tracking provides an overview for managers. However, a broad list can add confusion by forcing everyone to search through long lists to find a specific tool. Careful categorization can add structure to the system and make management much easier, as contractors can find categories that work best for them.

For instance, you can make a sublist for items used daily on every job site. You might also create sections for specific tools, or to classify equipment by age. This latter option will help you manage lifecycles and plan repairs and maintenance.

Since many jobs within a facility are specialized, most employees need specific tools and equipment. Skillful categorization makes tracking easier for everyone involved in the process. It allows them to deal with specific assets rather than combing through the entire list.

Utilize tool-tracking tags

Asset tags provide a way to streamline tracking within a fast-paced facility. Tagging strategies are simple. You affix a label or tracking device with unique identity information to each tool and piece of equipment.

Some asset tags require manual scanning, while others automate the process. The best asset tracking system depends on your budget, needs, number of employees, equipment types, and company size.

Here’s a look at the most common options you find when purchasing asset tags.

Barcode tags

Barcode asset tags offer a straightforward and cost-effective tool-tracking solution. Every piece of equipment gets a distinctive barcode that differentiates it from every other tool in the company. A scanner can reveal the identification info and obtain additional data from the asset management platform.

Barcode tags simplify inventory checks and reduce the chance of human error. It can also eliminate fraud where someone manually enters incorrect information.

Barcode scanning is intuitive, and employees will be able to do it with minimal training.

RFID tags

Radio frequency identification (RFID) asset tags transmit data wirelessly using radio waves. They send information to receivers, which transfer it to software.

Passive RFID labels reflect signals from receivers, while active tags use battery power to transmit directly to antennae.

The primary advantage of RFID tags is that they provide real-time insights into asset location and status. Also, because they scan automatically, these labels are more efficient than manual options like barcodes.

Weatherproof tags can stand up to the elements in outdoor environments, providing a level of loss prevention and tracking that manually scanned labels can't match.

QR tags

QR code asset tags use a unique pattern of black and white space to hold information. You can stick QR labels onto assets just like barcodes. One of the advantages of QR codes is that you can scan them with a smartphone app. This feature eliminates the need for specialized scanners and lowers the bar for training new users.

Finally, QR codes can store a lot of information. You may be able to store data on warranties and other information and transfer this data — even if the label is partly damaged.

Tamper-evident tags

Tamper-evident asset tags provide a security-focused solution for equipment tracking. The label changes appearance if altered or moved, allowing managers to find evidence of fraud, theft, or unauthorized use.

These labels prevent switching tools with lower-quality replacements, taking company tools for personal use, or hiding chain of custody.

Implement a check-in system

A check-in and check-out system offers advantages for facility management. This strategy is especially useful for companies with employees working on different job sites and projects at the same time.

Firstly, check-outs instill accountability by assigning tool responsibility to individuals, reducing the chances of neglect or misuse.

Secondly, the process provides real-time updates about tool availability. This information can help with planning and workflow management. Managers can also schedule tools for maintenance and locate them for repairs when needed.

Finally, employees will appreciate a well-defined system for managing their responsibilities. They know that their part in the process ends when they check tools in after use. They do not have to worry about blame for damage occurring when the next user takes a tool.