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Published on: July 2007
Type of content: WHITE PAPER
Format: Adobe Acrobat (.pdf) (92 kb)
Length: 3 pages
Price: FREE

Overview:
The advent of auto-identification technologies in the tracking and management of moving assets has opened the eyes of everyone from logistics managers to C-level executives to the benefits of implementing track and trace initiatives. The promise of better visibility into the supply chain, reduction of loss or theft, better security, and the opportunity to identify areas for improvement in overall business processes has led to a great deal of interest in tracking technologies and the concept of tagging assets. However, in the rush to leverage these technologies and drive the benefits through to the bottom line, companies sometimes forget that it takes more than a promising technology to create real value in their asset management initiatives. Technology is the means to the end, not the end itself. Best practices and proven processes combined with technology, are the keys to developing successful and sustainable tracking and management programs.

If you are looking to implement an asset tagging solution as a quick fix for your asset management issues, you should probably look again. Countless vendors are touting their hardware solutions as a sure fit for most any tracking initiative. That is, they look to make your problem fit their solution rather than the other way around. The truth is that affixing tags to your assets and setting up a few strategically placed readers is not the long-term answer to successful tracking solutions. If it works at all, you may get a high-level look into the behavior of your assets as they move from location to location, and it may even provide you with some additional intelligence about your assets as they cycle through the supply chain.

But, the real value of a well designed tracking solution is in the information it brings to your organization. To truly optimize your investment, you need to be able to capture and analyze the data over a period of time and then be willing to commit to modifying your business processes when the data tells you that there's a more cost effective or efficient way to operate. We refer to this concept as actionable business intelligence. That is, utilizing the tracking data to the n degree to uncover business process improvement opportunities. As in any good learning process it requires a feedback loop. That's the real value (not to mention the ROI) of a well designed asset tracking solution.