In the process of asset management, enterprises are susceptible to some inexplicable asset losses due to many factors. Therefore, strengthening asset management and preventing asset losses has become an important issue in management. In addition to improving asset management, asset tracking can also improve efficiency, output, and security. As the digital age has evolved, the ability of companies to track assets has gradually improved. People are starting to use artificial intelligence, real-time monitoring of data flow, and remote control for asset management. The GPS asset tracker is used in a variety of areas, including fixed and current asset tracking for businesses, fleet management for car rental companies or logistics companies, tracking and management of equipment, and even medication in hospitals.
Importance of Asset Management
First, you need to understand the assets of your business. Knowing what types of assets your business has is the first step in protecting them. You must know exactly how each type of asset is used in your business. Assets, as a rule, are divided into fixed assets and current assets.
Fixed assets are buildings, structures, machines, machinery, transportation facilities, and other production and operation-related equipment, appliances, and tools that are owned by an enterprise for more than one year.
Current assets refer to items that can be easily converted into cash. The enterprise’s current assets generally refer to its monetary funds, inventory such as materials, processed goods, etc., which can be liquidated in a short period of time.
When you have made an inventory of the assets of your business, you can start the next step of management. With the list, you can analyze which assets have management deficiencies and which are at risk. Then you can target your efforts to reduce losses from these risks by using asset tracking.
Enterprise asset loss refers to the loss of assets such as shortage, destruction, inventory loss, theft, etc. (excluding reasonable wear and tear incurred by the enterprise) caused by natural disasters and accidents or other reasons in the course of production and operation of the enterprise. The loss of enterprise property includes the loss of fixed assets and the loss of current assets. Effective asset management is more than a simple location-tracking solution. There are environmental management needs and preventive maintenance. In today’s world, mismanagement of high-value assets can be costly.
In the previous article on asset tracking solutions, we introduced 6 common asset tracking technologies, among which is GPS tracking. This article will focus on the application of GPS tracking in asset management.
About GPS Asset Tracker
1. What is a GPS Asset Tracker?
Our common asset tracking applications include tracking equipment on construction sites, tracking production line efficiency in manufacturing plants, monitoring medical equipment, tracking logistics and shipment tracking, and tracking important and expensive equipment to prevent loss and theft. Traditional asset tracking methods are often labor-intensive. And isolated systems are unable to perform accurate data tracking. With wireless technology, big data, and cloud computing, automated asset tracking can be achieved.
When it comes to tracking the location of your assets, nothing beats the security of a GPS asset tracker. For enterprises, the GPS asset tracker is small enough to be mounted on valuable assets like trucks, heavy equipment, containers, and tools. GPS asset tracking system has three components: GPS receiver, GPS tracker, and software application.
- GPS receiver: the device that is used by the GPS tracker to receive satellite signals and locate the asset by these signals；
- GPS tracker: can be attached to the asset to be tracked and used to receive and transmit location information to the application.
- Software application: It is used to analyze and display GPS asset tracking data, and users can view the data and receive alert messages, etc., through the program on their mobile phones or computers.
GPS asset tracker takes full advantage of GPS positioning technology, wireless technology, and low power consumption. This makes it possible for the tracker to continuously check and monitor the condition of your assets worldwide. GPS asset trackers are designed to protect your resources, such as equipment and assets. Since they use satellite technology, you can access their location data from anywhere in the world via an internet connection.
2. Pros and Cons of GPS Asset Tracker
Pros of GPS asset tracker
A. Reduce management cost
With GPS asset tracking, enterprises no longer need to dedicate staff to track the status of each asset. When the asset is broken or lost, enterprises can identify and solve problems in time to reduce losses. The human operation may make mistakes, but using GPS asset tracker can reduce such mistakes and the labor cost will be reduced.
B. Low power consumption
The low power consumption of GPS asset tracker can make its battery life longer and users do not need to change batteries or devices frequently.
C. Long-distance tracking
GPS tracking supports long-distance tracking, even if your assets are transported around the world, you will be able to track their location.
D. Real-time tracking
GPS asset tracking can provide real-time location information, so you know the exact location of your assets. The biggest advantage of asset tracking is the higher visibility. Not only can you get the location of your devices at any time, but you can also monitor the use of your assets. If your assets are being used improperly, you can know in time and do something about it.
Cons of GPS asset tracker
A. Signal Problems
GPS positioning technology has high signal requirements. Its signal is very much affected by factors such as buildings. Usually, the signal is weak in indoor environments and it can not obtain accurate positioning. Therefore, GPS tracking is more suitable for outdoor environments with good signals.
B. Cost Issues
GPS devices cost more and there will be subsequent additional costs such as subscription plans, server fees, etc. If you want to track your assets through GPS asset tracker, maybe you need to evaluate how many assets you want to track.
How Does GPS Asset Tracker Protect Your Assets?
1. What types of assets need GPS asset tracking?
First of all, we need to figure out what types of assets the GPS tracker is mainly suitable for tracking.
Heavy Equipment / Heavy Machinery
Heavy equipment / heavy machinery generally refers to construction machinery, including tower cranes, concrete mixers, crawler bulldozers, excavators, graders, etc. The values of these equipment are generally high, with bulldozers valued at up to $200,000 and some even exceeding $1 million. According to statistics, losses from theft of these equipment can be as high as $1 billion/year. In addition to the loss of equipment, the lack of equipment will also slow down the progress of the project. This will result in a great time cost loss. Therefore, by using GPS asset trackers, enterprises can track their equipment in real-time. If there is an equipment theft, the enterprise can locate the equipment with the tracker and share the information with law enforcement, maximizing the possibility of recovering the stolen equipment.
In addition, since there are many insurance companies that offer discounts for businesses that use GPS tracking devices, enterprises can save some of their insurance premiums if they use GPS asset trackers.
For cab companies and logistics companies, the vehicle is one of their most important assets. Asset tracking becomes an important part of fleet operations. In fleet management, you need to control the location of all vehicles to facilitate your management of them. The platform can receive timely alerts when something unusual happens to the vehicles, such as a collision, theft, etc. The administrator can make corresponding treatment in time after receiving the alert to reduce the loss. At the same time, GPS tracker also has the functions of driver behavior monitoring, vehicle speed monitoring and geo-fence setting. The combination of multiple functions can greatly improve the return on investment and reliability.
Containers and Trailers
GPS asset tracking is one of the most important tools applied by logistics and transportation companies to track containers. According to statistics, the probability of container and trailer theft is very high, and roughly $30 billion of cargo is stolen from trailers every year. The use of asset trackers not only prevents theft of assets but also tracks their exact location data. (Source from FreightWaves) When a container is parked at a port, the tracker allows the port to locate each container accurately so that they can manage and monitor the cargo.
2. How to find the best GPS asset tracker for your enterprise?
If you want to buy the best GPS tracker for you, then you need to consider the following factors.
- What type of assets do you need to track?
- How much budget do you have?
- What features do you need?
As mentioned above, GPS asset trackers are more suitable for outdoor asset tracking. If you have enough budget and need to track trucks and containers for logistics companies, for example, then a GPS asset tracker is definitely an ideal choice.
To sum up, GPS asset trackers are very helpful for companies to manage their assets. With the asset tracker, you can achieve intelligent management and clearly understand the condition of each asset, such as asset life and health status. This helps companies to save maintenance costs and extend the life of assets. It also improves asset utilization and ROI. When assets are stolen, they can be recovered in time through GPS location. Every business has assets of value and can benefit in many ways through the flexible use of asset trackers. If you are interested in learning more about how a GPS tracker can help you reduce asset loss and increase asset utilization.
With the tracker, you can achieve intelligent management and clearly understand the condition of each asset, such as asset span life, and status. This helps enterprises to save maintenance costs and extend the life of assets. It also improves asset utilization and ROI. When assets are stolen, they can be recovered in time through GPS positioning. Every enterprise has assets of value and can benefit in many ways through the flexible use of asset trackers. If you have any interests, you can learn more about how GPS tracking can help you reduce asset loss and increase asset utilization.