Five screens of the same model appear on the inventory list. The person doing the count finds four, and there is no way to determine which one is missing.
The problem is not in the list, but in the lack of labeling. Assets that are not individually marked can be counted, but not tracked.
In this article, we explained how to set up the labeling structure, location hierarchy, movement records, and details that facilitate counting.
Table of Contents
Why is labeling necessary?
The label establishes the bond between the physical asset and the record in the system. Without this bond, the record is nothing more than a list whose reality cannot be verified.
When assets of the same model are concerned, the importance of the label multiplies. The serial number may be hard to read or in an inaccessible place.
Labeling also significantly increases counting speed. Scanning and proceeding instead of manually comparing lists shortens the duration manifold.
Maintenance and breakdown records also proceed through the label. It is determined without hesitation which record the device sent to service belongs to.
Custody tracking is also strengthened with labeling; fixed asset custody tracking you can check out the article.
Numbering structure
The label number must be simple and unique. Complex coding schemes create problems in the long run.
Loading meaning into the number is a common mistake. When category or location information is embedded into the code, the number becomes incorrect when the asset is moved.
The correct approach is to use the number solely as an identifier. All attributes are kept recorded in the system and can be changed.
Sequential numbering is sufficient for most businesses. A short prefix, such as an institution abbreviation, can be added.
It is important that numbers are not reused. The number of a retired asset should not be given to a new asset.
Choosing the label type
Label selection should be made according to the environment where the asset is used. An office environment and a workshop environment require very different durability.
Standard adhesive barcode labels are sufficient for indoor office use. Their cost is low and they are easy to apply.
Durable material is required in environments exposed to moisture, oil, or heat. A faded label is the same as having no label at all.
Labels that cannot be easily removed should be preferred. A label that can be peeled off and stuck onto another asset ruins traceability.
Having the number on the label as both a barcode and readable text is a practical necessity. Manual entry should be possible when the barcode cannot be scanned.
Where to apply the label
The location of the label directly affects the inventory count speed. Having to move an asset just for an invisible label is inefficient.
Therefore, the label should be affixed to a surface visible in the normal standing position. Bottom surfaces are not practical.
The label position should be standard for assets of the same type. A label placed in a different spot on each device slows down the count.
Surfaces that are frequently cleaned or exposed to friction should be avoided. The lifespan of the label is significantly extended by the choice of location.
Areas containing manufacturer information, such as ventilation holes and label areas, must not be covered.
Location hierarchy
The location structure is the hierarchy describing where an asset is. When set up correctly, it drastically reduces search time.
A typical structure goes like this: company, building, floor, room or department. These four levels are sufficient for most businesses.
An overly deep hierarchy increases the burden of record-keeping and produces inconsistencies. A structure going down to the desk level cannot be kept up to date.
Location naming must be compatible with the signs in the field. Confusion is inevitable when the name in the system and the name on the door are different.
We discussed the warehouse structure in the warehouse groups and location structure article.
Transfer records
Assets constantly change locations, and failing to record these movements quickly renders location data worthless.
The ease of recording a transfer directly increases the likelihood of it being done. Scanning a tag from a mobile device and selecting a new location should take only a few seconds.
Bulk transfer should also be supported. Moving an entire room to another floor should not require individual records.
Retaining transfer history is beneficial. Knowing the locations where an asset has been located guides loss investigations.
For assigned assets, location and person information must be kept together; the two answer different questions.
Simplifying the count
A well-established tag and location structure turns counting from a challenging project into a routine operation.
Counting is done on a location basis. A room is scanned, and records that are not scanned fall into the missing list.
Unexpected assets are also captured. When a tag not registered to that location is scanned, it means a transfer record is missing.
When these two lists are evaluated together, most discrepancies explain themselves.
We detailed the counting method in the asset counting article.
Initiating the tagging project
Tagging existing assets is a one-time but labor-intensive effort. Proceeding with a plan significantly shortens the duration.
It makes sense to start the work with the highest-value assets. The benefit is felt from day one.
Progressing on a location basis is also efficient. One room is completed, then the next room is moved to, avoiding confusion.
Asset information should also be verified during tagging. This is the only opportunity to clean up the initial inventory data.
For newly purchased assets, tagging upon entry into the warehouse should become a rule. Tagging done afterwards always remains incomplete.
Points to watch out for
It is inevitable that tags wear out over time. A process must be defined for replacing unreadable tags.
Numbers should not be changed during renewal. Assigning a new number breaks the connection with past records.
Regular detection of assets left without tags is also necessary; untagged devices found during counting must be recorded immediately.
Changes in the location structure must also be managed. Assets in a closed department should be transferred to the new location in bulk.
Definitions in the inventory module managed and all movements generate records.
Frequently asked questions
Does the tag number replace the serial number?
No, it doesn't; both are kept together. The serial number belongs to the manufacturer, while the tag number is the institution's identity.
How are the tags printed?
Bulk printing can be done with a barcode printer; we determine the tag size and printer you will use together during setup.
Can location tracking be done automatically?
Automatic location tracking is out of scope; the location is updated through transfer records.
Can tags be scanned from a mobile device?
Mobile usage can be planned; we clarify the scope according to your needs during the installation phase.
Tagging is the invisible yet decisive infrastructure of inventory management. An untagged inventory cannot be verified in the field even if it looks correct on the list.
Do not load meaning into the number. Embedding the category or location into the code makes the system inaccurate when the asset is moved.
Standardize the tag position; the difference in counting speed is much greater than you think.
Make it a rule to tag new assets upon entry; tagging done later is never completed.
By consulting the EQLEM team, you can plan your tagging and location setup.