RFID technology for fixed asset inventory

What is RFID technology?

Radio Frequency Identification technology (RFID) is an innovation aimed at tracking goods and assets, with widespread applications in various sectors, ranging from security and aviation to asset control, the military and medical care, among others.

This technology is based on wireless transmission and involves an electrostatic coupling process. The data is stored on the chip of the RFID tag, and unlike conventional barcodes, there is no need to scan the rfid tags in a straight line or reading the elements individually.

RFID in fixed asset inventory

Certainly, operations related to fixed asset management stand out for their need to have accurate, constant information available at the right time. For this reason, many companies often face difficulties in staying up-to-date, especially when using conventional manual methods or outdated technologies.

In search of greater operational efficiency, science continues to advance in the development of new technological applications and in the exploration of innovative uses of existing technologies. One of these technologies is Radio Frequency Identification (RFID), which, despite having been conceived in the first half of the 20th century, It has become one of the most effective tools for companies today.

The reason behind its effectiveness is that this technology, when combined with the Internet of Things (IoT) and Artificial Intelligence (AI), has the ability to streamline the resolution of a wide variety of everyday challenges, including management. of fixed assets. 

Why is RFID a solution for controlling fixed assets?

The RFID technology It operates through the use of radio frequency waves and is based on tags that store information about the object to which they are attached. A reader activates these tags using an antenna, and then a controller collects the transmitted data. This information is then sent to the cloud or to a software for storage and analysis, this process is feasible thanks to the distinctive characteristics of RFID technology:

• Allows individual identification of an item within a group.
• Each tag can store information exceeding 1 kilobyte and can be rewritten as needed.
• The information contained on the labels can be read at distances of up to 10 meters, even without direct line of sight.
• Data reading is fast, taking just microseconds for each tag.
• The labels are versatile and can adapt to various surfaces and special conditions, including extreme temperature environments, water immersion, or materials such as paper, glass, fabric and plastic. In addition, they can be customized with the company logo.
• RFID technology is secure as it is extremely difficult to counterfeit tags and they can also be placed out of sight of people.
• RFID tags have a significantly long lifespan compared to other technology solutions.

In which part of the fixed asset control process is RFID technology useful?

RFID technology has a direct impact on a number of activities, including:

inventories: The most common application of RFID technology. With RFID tags, the inventory process is greatly streamlined and can be completed in a matter of minutes. It provides accurate information about each of the company's assets and requires less staff to carry out the task.

Follow-up (Tracking): RFID technology enables accurate tracking of fixed assets, even those that are constantly moving, such as vehicles. This makes it easier to know the exact location of the goods at all times.

Maintenance: For non-current fixed assets, RFID technology is valuable for maintenance. By providing historical information on the utilization of fixed assets, it allows potential failures to be anticipated in advance and addressed in a timely manner. This leads to more precise and efficient maintenance of assets.

How does RFID technology impact fixed asset inventory?

RFID technology has a significant impact on fixed asset inventory management, both operationally and financially:

Operational Impact

• Work and productivity optimization: RFID technology streamlines fixed asset control activities, allowing employees to do their jobs faster.
• Efficient maintenance: The ability to accurately track fixed assets helps prevent unexpected stops in production as maintenance can be scheduled more effectively.
• Improved planning: RFID technology facilitates more precise planning of the use of fixed assets and early detection of errors in the process.
• Facilitates the operation: Provides employees with the information necessary for the proper management of fixed assets, improving efficiency in the workplace.

Financial impact

• Improvement in asset investment: RFID technology provides information on which assets are operational and which are not, making it easier to make decisions about investments in new assets.
• Accurate Depreciation Determination: The information obtained from the use of fixed assets allows a more precise calculation of the depreciation of each asset.
• Tax compliance: RFID technology helps meet tax payment requirements by providing accurate tracking of fixed assets.
• ROI improvement: Allows you to more accurately calculate the Return on Investment (ROI) of each fixed asset, which helps in making financial decisions.
• Profit distribution: Facilitates better distribution of profits among shareholders by providing accurate information on the condition of assets.
• Calculation of insurance premiums: The information collected through RFID is valuable for calculating insurance premiums, as it reflects the situation and use of the company's fixed assets.

If you are looking for an efficient and accurate solution for managing your assets, our fixed asset inventory services with RFID technology can completely transform your business. contact Talk to one of our executives and discover how we can help optimize your operations, improve profitability and maintain full control over your assets.