Businesses increasingly rely on high-value equipment to boost productivity and maintain a competitive edge. But here’s the thing: the value of that equipment isn’t always just the cost of the device itself. More often today, equipment is valuable because they are integral in wider workflows.
Here’s an example: Consider a company that sells incredibly expensive refining and processing equipment to pharmaceutical companies. If one of their machines breaks, they must dispatch a highly paid engineer to investigate. That engineer might require a laptop, tablet, or augmented-reality headset to do their job. If a device isn’t ready and working when they need it, you have a high six-figure earning engineer standing around doing nothing while a multi-million dollar instrument remains out of production. That headset might only be a couple of thousand dollars, but it’s the lynchpin of this process. If it’s not working, those other resources are useless.
So that is why safeguarding critical business assets has become a paramount concern for companies that understand these risks. From laptops and specialized tools to medical devices and industrial machinery, the loss or damage of crucial equipment can result in substantial financial setbacks, production shutdowns, and even damage to a company’s reputation.
This article explores what can happen when equipment management practices break down and fifteen things businesses across industries should do to better protect their operating efficiency and their bottom line.
Explore: What is Operational Technology (OT)?
Dealing with lost, stolen, or broken equipment leads to some direct costs, namely repair or replacement. That can be expensive, but often not as expensive as the many indirect costs that stem from business equipment being unavailable:
Missing essential equipment can bring operations to a standstill. For example, sales teams without laptops can't contact customers or manage accounts, and IT support can't resolve issues without their tools.
Even relatively inexpensive devices can be crucial to mission-critical workflows. Consider that example of an augmented reality headset from earlier. If these devices are unavailable when needed, essential operations can be put to a halt, resulting in costly delays.
The loss of dangerous items, such as firearms, less-than-lethal (LTL) weapons, pharmaceuticals, or chemicals, can have severe consequences. For instance, improperly secured firearms could easily fall into the wrong hands, creating significant business equipment safety and legal issues.
The challenge with managing digital devices is that they’re both expensive and can hold sensitive data. And the loss of devices containing intellectual property can be catastrophic.
Lost digital devices can also provide attackers a direct route into your company’s network, leading to potential cybersecurity breaches. While strong cybersecurity measures can mitigate these risks, they still require substantial effort to manage, including company-wide password resets and security updates.
While some companies may insure against internal theft and loss, the work hours and financial costs associated with filing claims and increased premiums over time can outweigh the initial cost of replacement. Protecting assets upfront is often a more cost-effective approach.
Employees may delay reporting lost items to avoid reprimand or hoping the item will turn up. This delay can exacerbate the situation, reducing the chances of timely recovery and increasing the risks associated with the loss.
Using our definition of “high-value” as the importance of a device in your work, we can see that essentially every business has high-value equipment they need to consider. Some are obvious, but other devices’ high value only becomes clear on reflection. What would it cost your business if the work ground to a halt because any of this equipment was missing?
Understand the risks and discover the tools to protect your critical equipment.
No matter which business sector you work in, you can improve how you manage your business equipment by following a few proven best practices.
As you begin implementing asset tracking solutions, it's essential to first identify which equipment is critical to your operations and determine what specific data you need to collect. This will help ensure your tracking efforts align with your business goals and provide the right insights to optimize your decision-making.
Utilize a unified asset management system to maintain an up-to-date inventory, making tracking and managing equipment across the organization easier.
Assign equipment to specific employees or departments, creating clear responsibility for using and returning assets.
Label all equipment with durable, scannable tags (barcodes, QR codes, or RFID tokens) for easy identification and tracking.
Even the best smart asset management system requires the occasional audit to stay up to date. Conduct periodic physical audits to verify the presence and condition of equipment, reconciling with digital records.
Track how and when equipment is used to prevent misuse, overuse, or underutilization, extending asset lifespan.
Configure alerts in your smart asset management dashboard to notify managers of any unauthorized movement or removal of equipment.
Schedule routine maintenance and check-ups to ensure equipment is in good working order and to prevent costly downtime. Automate the scheduling process using a smart equipment management system.
Automate the check-in/check-out process to reduce manual errors and improve accountability.
Provide comprehensive training on the proper use and care of equipment to minimize damage and increase efficiency.
Establish a plan for recovering lost or stolen equipment, including tracking procedures and legal actions if necessary.
Equipment loss prevention insurance protects against financial loss by insuring your most valuable equipment against theft, damage, and loss.
Regularly review performance reports from your tracking system to identify patterns, inefficiencies, or areas for improvement.
Use smart lockers or secure storage rooms with access control to protect high-value assets when not in use.
Ensure your equipment tracking system integrates seamlessly with other business systems, such as ERP or maintenance management software, for better data flow and decision-making.
A smart locker system is a secure storage solution that monitors and manages the use of stored equipment. It uses sensors and computer controls to optimize inventory by managing asset availability, flagging items needing maintenance, and alerting administrators to irregularities in user signout activity. Unlike traditional lockers, smart asset management systems secure items and track their usage, including who checks them out and when.
Asset surveillance, a key feature of these systems, uses RFID tags or USB connections to verify the status and identity of returned items, ensuring they are functioning correctly and securely stored.
A smart equipment tracking system that manages your high-value tools and equipment protects your business against minor, day-to-day problems and major losses that can significantly impact your company’s plans. Implementing an effect tracking system takes some effort, but it saves time, money, and headaches down the road.
Don't let the risks of inadequate asset management impact your business. Protect your valuable equipment, reduce costs, and ensure uninterrupted operations with AssetTracer