How Does Barcode Asset Tracking Work?
Barcode asset tracking works by attaching a unique barcode or QR label to each asset and scanning that label with a compatible mobile device or scanner to access and update the asset’s record. Its location, custodian and condition can then be recorded quickly with less repeated manual data entry.
A linear barcode normally encodes a reference that links to the full asset record. A QR code is a two-dimensional symbol that can encode more characters and be read in different orientations by a compatible smartphone or scanner. Neither normally requires fixed reader infrastructure, although the tracking application and chosen workflow may require network connectivity.
In practice, the workflow is straightforward. Print and apply a label to each asset, link the label to the asset’s record at first scan, and from then on scan whenever the asset moves, is assigned or is checked. The code normally acts as the identifier linking the physical item to its record, while the full asset details remain in the system. Labels can still be damaged, obscured, detached or incorrectly assigned, so they should be checked as part of the audit process.
Barcode technologies use established industry standards, which has helped make compatible scanners and labels widely available. GS1 is the global standards organisation that maintains the GS1 barcode standards and allocates the identification numbers used in retail and supply chain barcodes, alongside other standards bodies covering different symbologies. For a plain-language primer, see the FMIS explainer on what barcode asset tracking is.
What Is Asset Tagging and Why Does It Matter?
Asset tagging is the practice of attaching a unique label or identifier to each physical asset so it can be identified and tracked. Without a unique tag, an asset may need to be identified using descriptions, serial numbers or other manual references, which can be slower and more ambiguous when several similar assets exist.
Good tagging starts with the right label for the environment. A laptop in an office needs only a standard printed label, while a tool in a workshop or an instrument exposed to weather needs a ruggedised or metal tag that survives heat, abrasion and cleaning. Tamper-evident labels suit high-value or security-sensitive assets, because they show if someone has tried to remove or swap them. Choosing the label to match the asset is what stops tags falling off and tracking breaking down.
An asset tagging system also needs a consistent numbering scheme. A logical, unique identifier for each asset makes the register easier to search and reduces the confusion of two assets sharing a description. The tag and the identifier together turn a vague list of equipment into a register where each item can be identified and verified more consistently.
Where you place the tag matters as much as which tag you choose. A label should sit somewhere it can be scanned without moving or dismantling the asset, and somewhere it will not be worn away by handling. For equipment that is cleaned frequently, sealed or recessed labels last longer. Agreeing tag placement across a category of assets saves time later, because a tag that cannot be scanned is of little use.
Where Do Manual and Spreadsheet-Based Tracking Break Down?
Manual and spreadsheet-based tracking can become difficult to maintain when assets move frequently or across several sites, because every change relies on someone recording it correctly. This can lead to stale locations, missing disposals and duplicate entries. Spreadsheet controls and version history may provide some traceability, but they are often less consistent and less asset-specific than the history maintained by a dedicated system.
- No real-time updates: the spreadsheet only changes when someone edits it, often long after the asset has moved.
- Limited audit trail: unless a spreadsheet is held in a controlled environment with version history, it may be difficult to establish who changed what and when.
- Human error: values, dates and identifiers can be mistyped or copied incorrectly.
- Slow reconciliation: a physical count means cross-checking many rows by hand.
Spreadsheets are not useless. For a small, stable group of fixed assets on one site, a spreadsheet may be adequate and involve little additional software cost. The difficulty is scale and movement. Every extra asset, site and person multiplies the number of manual updates required, and the register can drift without anyone noticing until a physical verification exposes it.
Barcode vs QR vs RFID vs GPS: How Do the Methods Compare?
Barcode and QR tracking identify an asset when it is deliberately scanned. RFID can identify one or more tags without direct line of sight, with reading range depending on the tag and equipment used, while GPS or telematics can report the location of suitably equipped mobile assets. The right option depends on the assets, environment, required level of automation and available infrastructure.
The table below summarises how the four methods differ in practice.
| Method |
Identification |
Infrastructure |
Relative cost |
Best use |
Main limitation |
| Barcode |
Scanned deliberately, line of sight |
Mobile device or scanner, no fixed readers |
Low |
Asset registers, audits, multi-site control |
Requires each item to be scanned individually |
| QR code |
Scanned deliberately, multiple orientations |
Camera-based device or scanner |
Low |
Camera-based scanning, more encoded data |
Needs adequate label space and print quality |
| RFID |
Read without direct line of sight |
Compatible readers or mobile hardware |
Medium to high |
Bulk identification in warehouses, retail, manufacturing |
Higher tag and reader cost, environment sensitive |
| GPS or telematics |
Reports location of equipped assets |
Location hardware and connectivity |
High |
Vehicles and mobile plant |
Addresses location, not register control |
Barcode and QR
Barcode and QR tracking is comparatively low cost, normally needs no fixed reader infrastructure, and can be used on demand with compatible mobile devices or scanners. It is well suited to asset registers, audits and multi-site control where the goal is an accurate record rather than continuous location data. FMIS supports barcode, QR and RFID scanning, allowing the method to be matched to the organisation’s assets and processes.
RFID
RFID tags can be read without direct line of sight and, depending on the tag and reader, can speed up bulk checks. RFID may require dedicated readers or compatible mobile hardware, and tags often cost more than printed barcode labels. It can suit warehouses, retail, manufacturing and other environments where multiple items need to be identified efficiently, although the additional cost and infrastructure should be assessed against the use case. The FMIS comparison of barcodes versus RFID in asset tracking weighs this up in more detail.
GPS and Telematics
GPS and telematics can report live or frequent location data, which suits vehicles and mobile plant. They address a different requirement from scan-based register control, although location data may form part of a wider asset management process. FMIS does not position around continuous GPS tracking.
