The Power of IoT in Asset Tracking and Management
IoT asset tracking isn’t just another buzzword. It’s a powerful way to monitor your assets in real time, and it’s transforming how companies manage, track, and optimize their resources.
The best part? This technology isn’t tied to a single industry. From logistics to healthcare, businesses across the board are reaping the benefits.
In this guide, you’ll discover what makes IoT asset tracking so effective. We’ll break down the tech behind it and show you how companies are using it to gain a competitive edge.
What is IoT Asset Tracking?
IoT (Internet of Things) asset tracking refers to the process wherein companies make use of internet-connected devices and technologies to, essentially, keep an eye out on their physical assets in real-time, like vehicles, goods, shipments, and the lot.
Let’s break it down with an example. Imagine a construction company that has a fleet of vehicles like bulldozers and road rollers. By attaching IoT trackers to these machines, they can pinpoint their exact location at any time—protecting them from loss or theft.
But it doesn’t stop there. The company can also monitor data on vehicle usage and condition. This helps them relocate underused machines to projects that need them or set aside backup machines while others go for servicing.
The learning? IoT asset tracking isn’t just about keeping an eye on your assets—it’s about making smart, calculated decisions that keep your operations efficient and effective.
How IoT Asset Tracking Works
IoT asset tracking works by attaching sensors and tracking devices to assets, allowing companies to access crucial data such as real-time location, condition, and movement. This kind of data isn’t just useful but also invaluable.
It gives companies clear visibility into their supply chain, helps identify the condition of their assets, and shows how those assets are being utilized. With this insight, it becomes easy to take a calculated approach to solve issues and optimize operations.
These devices measure various types of data, such as:
- Using GPS or other positioning technologies (for example, RFID), the location of your assets can be tracked in real time.
- Sensors are capable of detecting temperature, humidity, pressure, vibrations, and shock. This helps monitor the condition of assets.
- While GPS reveals the position of assets, motion sensors are used to detect more precise data, such as if an asset is moving or if it has been tampered with by reporting on its movement.
- Some devices are capable of measuring how often a machine is being used like an odometer reveals how many miles a vehicle has traveled. This helps track the usage of an asset.
These sensors are designed to be small, durable, usually non-invasive, and capable of withstanding harsh environments and conditions. For example, shock detectors are able to endure damage, and temperature sensors are capable of surviving in extremely cold or hot environments.
Connectivity Methods Used in IoT Asset Tracking
Once the sensors are attached and collecting information, they transfer the collected data to a centralized platform for analysis. This is achieved via various connectivity methods available. The choice of which connectivity method to use depends on various factors, such as the asset’s location, the environment, and the type of data being tracked. Here are the most common methods:
- GPS
The Global Positioning System, commonly just referred to as GPS, is one of the most commonly used methods of tracking the location of assets in real time. It uses global satellites to narrow down the location of an asset. It’s part of the GNSS, the Global Navigation Satellite System, which refers to any satellite constellation that provides global positioning and is known to be highly accurate. It’s used for long-distance IoT tracking.
- LPWAN
LPWAN (Low Power Wide Area Network) technologies, such as LoRaWAN and Sigfox, are developed specifically for IoT. Their design allows for long-range communication using minimal/low power consumption. These are a subset of cellular connectivity and were designed to make it more affordable and secure.
Instead of using a general networking system, they create their internal network subset within which data is transferred with a weaker signal (which is not a bad thing in this particular case). These are ideal for tracking your assets in remote locations or items that don’t need to send data frequently, for example, shipping containers or equipment in large, outdoor areas.
- Wi-Fi
You must be already familiar with how Wi-Fi works. But did you know that it plays a crucial role in IoT asset tracking? Wi-Fi is fast, reliable, and widely available. This makes it the go-to choice for short-range data transmission—perfect for environments like warehouses and retail stores.
With Wi-Fi, companies can transmit data quickly, ensuring real-time updates on asset location, movement, and condition. The result? Faster decision-making and smoother operations.
- Bluetooth
Bluetooth is commonly used to track assets within a small radius, such as within a store, warehouse, or facility—essentially in order logistics. Bluetooth may have a small range, but with beacons placed throughout a space, it can offer more accurate IoT tracking results. With Bluetooth 5.1, it’s possible to track assets with real-time meter accuracy.
Bluetooth is perfect when you need to track things up close and with accuracy. It’s great for situations where you need to know exactly where your assets are within a smaller area.
Plus, Bluetooth can work with other IoT systems to create a strong network, which helps make your asset tracking even better.
- RFID
RFID (Radio Frequency Identification) uses electromagnetic fields to identify and track tags attached to assets. It’s called a passive tracker because it doesn’t show the exact location of an asset. Instead, it simply tells you if an asset is within the range of an RFID scanner.
The range of RFID can vary a lot—from just a few inches to hundreds of meters. So, while it won’t give you the precise location of an asset, it will let you know when an asset is nearby or has entered the scanner’s range.
Even with its limitations, RFID is very popular. It doesn’t need a battery and is very affordable. But keep in mind that it can be affected by interference from other signals.
Once data is collected from all connected assets, it’s sent to a central platform. This is where the data is stored, managed, and analyzed to find useful insights. In simple terms, the platform can help you understand your data and take action based on what you find.
IoT for Asset Tracking and Management
IoT brings many advantages to asset tracking and management, including:
- Asset Loss and Theft Prevention
With IoT, you can keep an eye on your assets all the time, making it much harder for them to be stolen or lost. If an asset is moved out of a set area or there’s any unusual movement, alerts can be sent right away.
In the worst-case scenario where something does go missing, IoT makes it easier to track it down, saving a lot of time and effort when trying to recover it.
You might also want to check out IOT for Asset-Heavy Manufacturers.
- Safety and Tracking
Businesses that have employees working in potentially dangerous locations can highly benefit from using IoT asset tracking to ensure the safety of their employees. For example, workers in mines can be equipped with devices that track their location as well as temperatures. Temperature sensors can alert them if they reach a hazardous point, and in case of an emergency, they can be tracked down using real-time location data.
These can be used not just for miners but also in construction, oil and gas, forestry, and other industries.
- Environmental Impact
Every company has a responsibility to reduce its negative impact on the environment and work toward being more sustainable. The supply chain is where much of this impacts.
IoT gives important information that can help your business run its operations more smoothly, which means less waste—no matter if it’s energy use or material waste. Reducing this waste cuts down on the company’s environmental footprint over time.
This helps your business save money and build a positive image with customers while staying compliant with regulations.
Best Practices for Effective IoT Asset Management
Careful planning is required for IoT asset management to get the best results. Here are some best practices to implement and manage IoT asset tracking effectively:
- Choose the Right IoT Technology
Choosing the right IoT asset-tracking technologies (like sensors, connectivity options, and platforms) is key to making sure you get real value from your investment.
When picking a technology, think about how reliable, accurate, scalable, and cost-effective it is. Also, consider the type of assets you’re tracking, the environment they’re in, and how precise you need the tracking to be. For example, if you’re managing a fleet, Bluetooth or RFID can be very useful. For larger-scale tracking, GPS or LPWAN would be the best choice.
- Develop a Solid Implementation Plan
It can’t be overstated how important having a proper implementation plan is. Before rolling out your asset-tracking IoT devices, create a detailed implementation plan that includes outlines of the goals, a timeline for the project, staff training, required resources, as well as any policies and procedures to be followed.
It’s ideal to involve all relevant stakeholders, like IT, operations, and procurement teams, in the planning process to ensure all needs are addressed.
- Integration with Existing Systems
Most companies already use systems like inventory or maintenance management tools. Making sure your IoT asset-tracking data can easily connect with these existing systems is important. This integration gives you a complete view of your data, makes sharing information easier, and boosts visibility across all operations.
- Prioritize Security and Data Privacy
IoT systems are vulnerable to cyber threats, so having security protocols in place is essential. Make use of encryption and secure data transmission methods, and make sure your IoT devices and platforms receive regular updates. An enterprise-level IoT system should have firewalls, secure APIs, and user authentication processes in place to prevent unauthorized access to sensitive asset data.
It’s best to tie up with developers and your IT department to perform regular audits of IoT systems to look for potential security gaps and update security protocols.
- Set Clear KPIs and Metrics
Set key performance indicators (KPIs) that managers can use to measure how well your IoT asset management is working. Important metrics include asset utilization rates, maintenance costs, downtime, response times, the ROI of the IoT system, and more.
For example, tracking how often critical assets are in use compared to downtime shows how effective your predictive maintenance program is. KPIs aren’t fixed, so make sure to review and update them regularly as business challenges and goals change.
How LLumin Can Help Track and Manage Assets
Having the right platform can make asset tracking so much easier. Our team at LLumin developed an automated CMMS+ asset maintenance solution to take the complexity out of the process. This allows you to make better and more calculated decisions and handle challenges more effectively.
Our CMMS+ has won multiple industry awards for IoT-enabled maintenance solutions and is trusted by businesses across different industries, such as manufacturing, municipal services, energy, and construction.
Here are some of the main features you can find inside the software:
- Preventive and Predictive Maintenance: LLumin uses AI to analyze data and find patterns in both usage and historical records. This helps predict when assets will need repairs. By spotting potential problems before they become serious, businesses can avoid major breakdowns, reduce downtime, and extend the life of their equipment.
- Integration Ability: Our solution is highly adaptable and integrates easily with IoT sensors, supply chain, manufacturing, and personnel systems. This seamless integration allows live asset monitoring and provides a full view of data.
- Asset Tracking and Management: LLumin acts as a central database that shows real-time asset locations, making it easier to monitor equipment. With user-friendly productivity tools, you can track many assets across different locations.
- Reporting and Analytics: You can turn large amounts of data into useful insights with automated reports, customizable dashboards, and role-based statistics. These reports can be easily accessed through LLumin’s mobile app, making data review convenient and efficient.
Want to see how LLumin can help supercharge your asset management? Schedule a demo with us today.
Closing Thoughts
IoT asset management is now easier than ever. It brings big benefits to businesses, like boosting efficiency, cutting down on downtime, and making sure assets are used better. This means operations run more smoothly, costs are reduced, and there’s even a positive impact on the environment.
FAQs
What is an asset in IoT?
An asset in IoT refers to any physical or digital object, for example, machinery, vehicles, or equipment.
Which technology is best for asset tracking?
The “best” technology for asset tracking depends upon the object being tracked and its environment. For long-range tracking, LPWAN or GPS is ideal, while for shorter distances or indoor tracking, Bluetooth, RFID, or Wi-Fi are preferred. Each technology has its pros and cons.
How are assets tracked?
Assets are tracked using IoT sensors and devices that collect information about their data, usage, and condition and transmit it via connectivity methods (like WiFi) to a centralized platform.
Karen Rossi is a seasoned operations leader with over 30 years of experience empowering software development teams and managing corporate operations. With a track record of developing and maintaining comprehensive products and services, Karen runs company-wide operations and leads large-scale projects as COO of LLumin.