Effectively managing company assets is no longer just good practice, it’s a critical driver of operational success and financial health. With the US enterprise asset management (EAM) market projected to grow from $1.9 billion in 2023 to $2.7 billion by 2028, the strategic importance of overseeing these resources is undeniable.
Asset monitoring is a key part of this. Done well, it saves time, reduces costs, and helps companies meet industry and legal standards. This guide offers a step-by-step approach to understanding and setting up asset monitoring. We’ll cover the processes, tools, best practices, and ways to handle common challenges.
Asset monitoring uses hardware and software to track physical items like machines, vehicles, and tools remotely. This lets you know their location, what they’re doing, and if they’re working correctly.
Think of it as a continuous check-up for your equipment. Asset tracking mainly shows where things are using tags. Asset monitoring goes further. It gives you real-time updates on how well your items are performing.
Both are key parts of full asset management. Atlassian defines asset management as overseeing an item’s entire life, from buying it to getting rid of it.
Using good asset monitoring brings many benefits. Businesses become more efficient; knowing where assets are cuts down search time and makes work processes smoother.
Gartner research suggests companies can cut software spending by up to 30% with better management. An FMX article also highlights that asset tracking systems lower administrative costs. For instance, Sage Accounting found that a $2 million company using spreadsheets to track assets might spend up to $50,000 a year on “ghost assets” or missing assets that they are paying for.
Optimized maintenance planning using real-time status data extends asset lifespan and reduces downtime. This data facilitates informed, data-driven decisions and enhances security and compliance by tracking asset movement and maintaining accurate records.
Source: Faster Capital
In manufacturing, monitoring helps predict when a machine on the assembly line might fail. This lets teams do maintenance during planned downtime, preventing expensive shutdowns.
For logistics and construction, location is key. A shipping company can tell a client the exact whereabouts of their cargo. A construction firm can track expensive bulldozers and cranes across a large job site.
In healthcare, quickly finding equipment is critical. Asset monitoring helps hospital staff instantly locate everything from IV pumps to portable X-ray machines. This ensures they are ready when a patient needs them.
It’s not just for heavy machinery either. IT departments use a specific type called IT asset management (ITAM). They use it to keep tabs on company computers, track software licenses, and manage cloud resources to control spending.
A structured approach to implementing asset monitoring ensures alignment with business objectives.
A successful plan starts with clear goals. Identify your most important assets and list everything to monitor. Look at your current maintenance costs and downtime. An Infraon guide suggests talking with stakeholders to decide how much to include. If resources are tight, begin on a smaller scale. Define your budget and what return you expect. This first step is crucial.
Your needs assessment helps you pick the right tools, whether that’s barcodes, RFID tags, GPS, or IoT sensors. The system you choose must work with your assets and be easy to use. Decide if you want local servers or cloud-based platforms. Scalability is important; your system should be able to grow with you.
Plan a gradual rollout, focusing on your most important assets first. Decide on specific monitoring details: location, how much an asset is used, or conditions like temperature (using IoT sensors). Figure out how you will collect data. Install hardware like scanners or readers where they make the most sense.
Tag your assets physically and add their details, like serial numbers, into the system. Install your chosen software. Fast and accurate data collection is key. Most importantly, connect your monitoring solution with existing systems like ERP or CMMS. This brings all your data into one place.
Example of an asset management tracking dashboard.
Source: Things Board
Test the system thoroughly to ensure accurate tracking. Make sure staff get full training so they can use the new system effectively. Asset monitoring needs ongoing performance checks and adjustments based on data. Set up automated alerts and use custom dashboards. Regularly review key metrics to improve processes and get real-world insights.
Modern asset monitoring systems use many different technologies.
Barcode and QR code tags are scanned electronically. QR codes, which smartphones can often read, hold more data.
RFID (Radio Frequency Identification) uses radio signals. Passive RFID tags don’t need batteries and are good for seeing what’s in your inventory. Active RFID tags have batteries, giving them a longer range through technologies like Bluetooth.
GPS technology is excellent for tracking mobile assets like vehicles and outdoor equipment, using satellite data. It gives exact locations and can monitor speed and mileage. However, it works less effectively indoors.
Comparison of common asset tracking technologies by key features.
Source: Expansive
All the tags and sensors are useless without good software to make sense of the data. This software platform is your central hub for everything. When picking one, look for a few key things:
You’ll also need to decide between a cloud-based service (hosted online) or an on-premises one (run on your own servers). For very specific needs, you might choose fully custom software.
Consistency is key. Standardize how data is entered, how things are named, and how workflows operate across departments. If different teams do things differently, your reports will reflect it.
For the system to be used effectively, staff need thorough, role-specific training that covers all aspects of its use. The Azuga guide on asset tracking points out the importance of regular refreshers and encouraging feedback.
Asset monitoring should be part of a larger plan. IBM stresses a lifecycle approach, meaning you know where your asset is from its first day to retirement. This includes contract management, software licensing, performance history, and everything in between.
Source: ServiceChannel
Connecting modern tools with older, existing systems is a common challenge. This might require custom middleware or APIs.
Modern systems produce a lot of data. The SecuritySenses guide warns that without clear analysis goals, you can face “data overload.” To get useful insights, define clear key performance indicators (KPIs) and use customizable dashboards effectively.
Reliability depends on accurate input data; models need to be validated with real-world results. Regularly check data for accuracy. Security is crucial; ITAM improves control over IT environment security. Remember, tools are aids, not perfect predictors.
A good example of asset monitoring in action comes from the UK’s National Health Service (NHS) during the COVID-19 pandemic. The NHS had trouble finding medical equipment, with nurses spending much time looking for items like ventilators. This inefficiency directly impacted patient care, since quickly finding equipment is crucial.
They found a solution: an IoT-powered real-time location system using Wirepas Mesh technology. Battery-powered tags on equipment sent their locations through a decentralized network. This meant it could be set up quickly with minimal extra infrastructure. The result was clear: staff could quickly find essential devices, improving patient care and making operations far more efficient.
We have deep experience helping with complex IT asset management, overseeing industrial equipment, or tracking assets in sectors like healthcare and logistics.
Talk to our experts to find out how Kanda can help you use asset monitoring solutions to streamline your operations, reduce costs, and create new efficiencies faster.
Asset monitoring is changing how companies manage what they own. It won’t solve every problem instantly, but messy data or clunky systems can certainly slow you down.
If you get the basics right, tools that work, processes that make sense, and a team that knows what to do, you’ll gain more control, reduce waste, and have a much smarter business.
