Asset Tagging Best Practices

Why Asset Tagging Matters

Asset tags create the permanent link between physical hardware and digital records. Without physical tagging, asset management degrades to unreliable serial number matching—and 30% of devices have illegible, missing, or duplicate manufacturer serial numbers.

Effective asset tagging enables:

• Rapid identification: Instantly identify any device by scanning its tag
• Audit efficiency: Complete physical audits in hours instead of days
• Chain of custody: Track device movements with scan-based check-in/check-out
• Error prevention: Eliminate manual transcription errors from serial number entry
• Theft deterrence: Visible tags discourage theft and aid recovery

Tagging Technology Comparison

Three primary technologies exist for asset tagging, each with distinct advantages and use cases.

Barcode Tags

How they work: Optical scanner reads encoded data from parallel lines of varying widths. Common formats include Code 39, Code 128, and Data Matrix 2D barcodes.

Advantages:

• Lowest cost: $0.05-$0.25 per tag
• Mature technology with universal scanner compatibility
• No power source required
• Can encode asset ID plus additional data (location, purchase date)
• Works with smartphones using camera-based scanning

Limitations:

• Requires line-of-sight scanning
• 1D barcodes hold limited data (typically 20-30 characters)
• Damaged or dirty tags become unscannable
• Cannot be read through materials or from a distance

Best for: Most use cases; standard asset tracking where line-of-sight scanning is acceptable and budget is a consideration.

QR Code Tags

How they work: 2D matrix barcode readable by camera-based scanners. Stores data in both horizontal and vertical dimensions.

Advantages:

• Low cost: $0.10-$0.35 per tag
• High data capacity: up to 4,296 alphanumeric characters
• Error correction: readable even if 30% of code is damaged
• Scannable with any smartphone (no dedicated scanner required)
• Can encode URLs for instant web-based asset information

Limitations:

• Requires line-of-sight like barcodes
• Larger physical size than 1D barcodes for visibility
• Requires good lighting for reliable scanning

Best for: Modern deployments where smartphone scanning is desired; assets requiring embedded data or URL links; field service scenarios.

RFID Tags

How they work: Radio-frequency identification uses electromagnetic fields to transmit data. Tags contain a chip and antenna that responds to reader interrogation.

Advantages:

• No line-of-sight required—read through materials and containers
• Bulk scanning: read hundreds of tags simultaneously
• Greater read range: active tags readable from 100+ feet
• Durable: encapsulated tags withstand harsh environments
• Writeable: data can be updated on the tag itself
• Enables automated tracking at doorways and checkpoints

Limitations:

• Higher cost: $0.50-$5.00 per passive tag, $20-$100 for active tags
• Requires specialized readers ($500-$3,000+ per unit)
• Metal and liquid interference affects read reliability
• Complex implementation requiring RF site survey
• Privacy concerns from remote readability

Best for: High-value assets requiring automated tracking; large-scale deployments justifying infrastructure investment; assets in harsh environments; inventory requiring fast bulk counts.

Technology Selection Matrix

Tag Materials and Durability

Tag material selection significantly impacts lifecycle costs. Poor material choices result in tag replacement campaigns that cost 10x the initial investment.

Polyester (Synthetic)

Characteristics: Flexible plastic film with adhesive backing. Most common asset tag material.

Lifespan: 5-7 years indoors; 3-5 years outdoors with UV protection

Best for: General indoor use on laptops, desktops, monitors, office equipment

Cost: $0.10-$0.30 per tag

Destructible Vinyl

Characteristics: Fragments into pieces when removal is attempted. Prevents tag transfer to unauthorized devices.

Lifespan: 3-5 years; intended to be permanent

Best for: High-value or theft-prone equipment; assets requiring tamper-evidence

Cost: $0.25-$0.50 per tag

Aluminum/Metal

Characteristics: Anodized aluminum with permanent printing. Extremely durable.

Lifespan: 10-20 years in all environments

Best for: Outdoor equipment, industrial machinery, harsh environments

Cost: $0.50-$1.50 per tag

Note: Not compatible with RFID due to metal interference

Ceramic

Characteristics: RFID tags with ceramic construction withstanding extreme heat and chemicals.

Lifespan: 20+ years in extreme environments

Best for: Assets exposed to heat, chemicals, or outdoor weather (servers, network equipment, industrial assets)

Cost: $3-$10 per tag

Tag Placement Strategies

Consistent tag placement accelerates scanning and improves audit accuracy. Establish standard placement rules by asset category.

Recommended Placement by Asset Type

Placement Best Practices

• Clean the surface: Use isopropyl alcohol to remove oils and dust before applying tag
• Avoid curved surfaces: Tags adhere poorly to curves; choose flat areas
• Avoid heat sources: Don't place near vents, processors, or power supplies
• Consider accessibility: Tag should be visible/scannable without disassembling device
• Document placement: Take photos of tag placement for each asset category
• Apply consistent pressure: Press firmly for 30 seconds after application to activate adhesive
• Allow cure time: Full adhesive strength develops in 72 hours; avoid moving assets immediately

Asset ID Numbering Schemes

Your asset ID structure should be simple, sequential, and future-proof. Avoid "intelligent" numbering schemes that encode meaning—they become constraints as the organization evolves.

Recommended: Simple Sequential

Format: PREFIX + Sequential Number

Example: IT-000001, IT-000002, IT-000003...

Advantages:

• Infinitely scalable
• No logic to maintain as organization changes
• Easy to communicate verbally ("IT 1234")
• Prevents duplicate IDs through simple incrementing

Recommendations:

• Use leading zeros (IT-000001 not IT-1) for visual consistency and sorting
• Start at 1000 or 10000 to avoid "low" numbers that look unprofessional
• Reserve number ranges for future use (1000-49999 for IT assets, 50000-99999 for facilities assets)

Avoid: Intelligent Numbering

Format: LOCATION-DEPT-TYPE-NUMBER

Example: NYC-FIN-LAP-0001

Why to avoid:

• Assets move between locations and departments
• Asset types get reclassified
• Office codes change during reorganizations
• Results in "wrong" asset IDs that must be changed or ignored
• Complex to explain and error-prone to use

Store location, department, and type as attributes in your HAM system—not in the asset ID itself.

Implementation Roadmap

Successful asset tagging projects follow a phased approach starting with high-value assets and expanding systematically.

Phase 1: Pilot (Weeks 1-2)

1. Select tag technology and material based on budget and requirements
2. Order sample tags from 2-3 vendors to test quality and adhesion
3. Define asset ID numbering scheme and reserve number ranges
4. Choose pilot group: single department or location with 50-100 assets
5. Tag pilot assets and test scanning workflow
6. Gather feedback from technicians on tag visibility, durability, and scan reliability
7. Refine tag placement standards based on pilot learnings

Phase 2: Rollout Planning (Weeks 3-4)

1. Order tags and scanners for full deployment
2. Create placement guide with photos for each asset category
3. Assign tagging responsibilities (IT team vs. department coordinators)
4. Schedule tagging windows to minimize user disruption
5. Communicate rollout to organization with benefits and timeline

Phase 3: Mass Tagging (Weeks 5-12)

1. Tag assets systematically by location or department
2. Record asset tag ID in HAM system as tags are applied
3. Photograph serial number and tag placement for documentation
4. Conduct daily quality checks: scan sample of tagged assets to verify readability
5. Track progress with metrics: assets tagged per day, tags requiring replacement, scan success rate

Phase 4: Integration and Maintenance (Ongoing)

1. Integrate tag scanning into operational workflows (receiving, deployment, repair, retirement)
2. Conduct quarterly tag audits: identify missing or damaged tags requiring replacement
3. Maintain tag inventory: monitor stock levels and reorder before depletion
4. Update placement standards as new asset types are introduced

Next Steps