Businesses of all kinds have to manage the tools in their possession. Most of these tools are usually small and easy to lose. The risk of misplacement increases as more employees from different departments use the tools. Thus, business owners need to create a tool-tracking strategy.
So, how does someone monitor multiple tools at a go? This is where tool tracking software comes in. It provides real-time information about different tools. In doing so, business owners can keep an eye on their assets wherever they are. Read on to learn more about how tool tracking eases business operations.
Ways in Which Tool Tracking Improves Operations
Tool tracking is one of the most valuable investments a business owner can make. Here are some ways in which it helps ease business operations
A company may face inventory theft and misplacement without proper tool tracking practices. Thus, a business will have to spend money replacing stolen and lost tools. Doing so hurts the business’s financial well-being. The money spent on a replacement could also go elsewhere and help with business growth.
Implementing tool tracking provides a solution. It allows managers to track the whereabouts of all assets, reducing the risk of misplacement. Also, tool tracking helps scare off those looking to steal assets. Reduced instances of stolen or lost tools lower the replacement cost.
Reduced Human Error
Using spreadsheets to maintain data on assets may be simple at first. However, the spreadsheet may become hard to manage as more information comes in. If multiple people handle the data, there is a high risk of errors. Mistakes can be costly to the business.
A tool tracking software can help with data management. In doing so, it reduces the likelihood of human error.
Lower Insurance Premiums
Tool tracking provides real-time information on the location of assets. It also helps reduces instances of theft and losing assets. Both these benefits help reduce insurance premiums. With tool tracking, business owners won’t pay high insurance premiums on non-existent tools.
Better Inventory Management
A tool-tracking system provides companies with vital data. In doing so, it helps streamline inventory management operations. Business owners will be able to know what they have in stock and what they need to get more of.
It also lets owners know what they need to upgrade or replace. This allows them to stay up to date with current technologies.
Longer Asset Lifecycle
It provides details on the status of assets. Thus, it allows managers to plan for the maintenance of various tools. Preventive maintenance has many benefits. It reduces the likelihood of breakdowns, thereby saving on future repair costs.
It also helps provide a longer asset lifecycle. Thus, tools will remain productive in the long run.
Cluttered warehouses cause inefficiency. It can help with sorting tools according to their use.
For example, someone can group tools depending on department usage. Tools in one group are then placed in the same location. Such a system eliminates the need for employees to spend a lot of time looking for what they need.
Ease of Scaling Up
As a business gains more clients, it must expand to meet market needs. A legacy system may not offer the storage flexibility that a business needs to scale up. But a more advanced tool tracking software does. With it, a business can take on more data as it grows.
Improved Employee Efficiency
Smaller businesses tend to carry out manual data collection. However, tool tracking can help with automatic data collection. In doing so, employees can focus on other vital areas of the business.
Adherence to Regulations
Almost all businesses have to follow industry regulations. Doing so may involve maintaining reports and charts for all business assets. A tool-tracking system can help with such an endeavor.
3 Types of Tool Tracking Solutions
A company will likely face many challenges if it lacks a good tool-tracking system. With the system in place, a business can function more efficiently. There are different kinds of tool tracking mechanisms, including:
1. Radio-Frequency Identification (RFID)
Radio-frequency identification (RFID) tags transmit the whereabouts of tools. It eliminates errors in tool tracking. RFID requires the use of handheld scanners. So, a business owner must first determine how many scanners the company will need.
Some tool tracking softwares uses GPS tracking. Such a system is beneficial because it allows for communication over long distances. It also helps keep precise and updated records. In addition, GPS tracking helps prevent asset theft.
Using barcode labeling for tool tracking is quite popular. There are many reasons for its widespread use. It’s easy to create and scan the barcode labels. The tool-tracking mechanism is also affordable and eliminates human error.
Tool Tracking Is Vital for Any Business
The cost of misplacing tools may seem insignificant at the beginning. However, as more and more assets get lost, the cost will add up. Tool tracking comes in to help with accountability and improve operational efficiency.