How Much Does Asset Tracking Really Cost in 2024?

There are thousands of pieces available across the internet but still finding the exact cost of asset tracking seems like a mystery. Worry not, this piece will be breaking down everything you need to know about asset tracking: what it is, and the factors that influence its cost.

Keeping tabs on your business assets is no longer optional, it’s essential. Here’s where “Asset Tracking System” comes into the game. As the world of asset management software grows, pinpointing the true cost of asset tracking can be challenging.

While the benefits of implementing an asset tracking system are undeniable, organizations are often left wondering: ‘How much does asset tracking cost?’ The answer, unfortunately, isn’t a one-size-fits-all. Several factors influence the overall cost of asset tracking.

If you are someone who wants a clear picture of the cost factors that can fluctuate the finances and help you plan your budget accordingly when it comes to asset tracking. This piece is for you.

But wait! Why in a hurry? Before we get into some numbers, let’s just unfold what is asset tracking and how can asset tracking software help you keep an eye on your assets.

What is an Asset Tracking System?

Asset tracking in its simplest definition, is a method used to track a company’s physical assets either by scanning barcode labels attached to the assets or by using tags with the help of GPS or RFID, which broadcast the ‘WHERE’ in the fleet operations.

An asset-tracking system provides real-time, accurate data on the location and movements of high-value vehicles, consignments, and mobile workforce like your fleet drivers.

Before we get into how this works and how much it costs, it’s vital to understand what an asset actually is. An asset is any item that is considered a resource owned by a company and has economic value.

How Much Does an Asset Tracking System Cost?

The cost of an asset tracking system can vary significantly depending on various factors such as the type of system.

• (GPS-based, barcode-based, RFID-based, etc.)
• the scale of implementation (number of assets, locations, users),
• additional features required (real-time tracking, integration with other systems, and more.

Before we get into the cost factor of asset tracking, we need to understand what are the major components of asset tracking (both hardware and software).

Each plays a vital role in ensuring seamless tracking and management of assets.

Let’s explore these components in detail.

Components of Asset Tracking System

An asset tracking system typically comprises several key components, which work together to monitor, manage, and locate assets within an organization. Here are the main components.

Asset Tracking Hardware

Tags/Labels- These are physical identifiers attached to assets, typically equipped with RFID (Radio-Frequency Identification) or QR code technology for easy scanning and identification.

Readers/Scanners- Devices used to capture data from tags or labels. RFID readers or barcode scanners are commonly used for this purpose.

GPS Trackers- When tracking assets that move, such as vehicles or high-value equipment, GPS trackers are used to provide real-time location data. These trackers can be installed directly on the assets or incorporated into asset tags.

eLocks- Electronic locks secure assets such as containers, vehicles, and more. Basically, eLocks communicate with a central server or platform to provide real-time status updates (such as lock/ unlock events, tamper alerts, and location information.

AVL Devices- AVL aka Automatic vehicle location devices are used to track the location and monitor the status of a vehicle in real-time. AVL devices may also include cellular or satellite communication modules to transmit location data to a central server. They provide features like route optimization, geofencing, speed monitoring, and vehicle diagnostics.

Sensors- Specialized hardware that provides additional information about the asset, such as location, temperature, humidity, etc.

Connectivity Devices- Equipment facilitating communication between hardware components and the central tracking system, including Wi-Fi routers, cellular modems, or Bluetooth transmitters.

OBD GPS Trackers- OBD GPS trackers are plugged into the OBD-II (On-Board Diagnostics) port of a vehicle, allowing for real-time tracking of the vehicle’s location, speed, and other diagnostic data. These devices are commonly used for fleet management and vehicle tracking applications.

Fuel Sensors– Fuel sensors are used to monitor the fuel level of vehicles or other assets. They can provide real-time data on fuel consumption and fuel levels, helping fleet managers optimize fuel usage, detect fuel theft, and plan refueling operations efficiently.

The cost of asset GPS trackers can range from $100 to $500 or more, depending on factors such as device features, battery life, and connectivity options.

Asset Tracking Software

Asset Management Software This is the foundation of any asset monitoring system. The software enables the tracking, analysis, and precise reporting of the asset data. Additionally, with an ideal asset tracking software, you get to track every move of your vehicles as well as the consignments, despite the number of vehicles or modes of transportation that come into action. All over, the software includes features like asset database management, real-time tracking, & reporting, and analytics.

Cost Factors of Asset Tracking

1) Types of Assets and their Volume

The type of asset you want to track and its complexity play a very significant role in determining the cost of an asset tracking system. Assets vary in size, value, and intricacy, from small cargoes and trailers to large vehicles.

• Variety and Nature of Assets

The cost can vary based on the types of assets or vehicles being tracked. It also depends on the size of the fleet and the volume of goods every vehicle can accommodate. Larger sizes and volumes may require more resources for tracking, maintenance, and advanced oversight. Additionally, larger or more complex assets may also require more careful specialized handling which can incur higher costs.

• Special Requirements (if any)

Certain assets may have special requirements for tracking, such as hazardous materials requiring specialized tracking mechanisms, and temperature-sensitive goods require proper temperature monitoring which can add to the overall cost.

2) On-Premises v/s Cloud-Based Solutions

When it comes to asset tracking the deployment model of the asset tracking system, whether on-premises or cloud-based, can influence both initial investment and ongoing operational expenses.

• Upfront Investment

On-premises solutions typically require a higher upfront investment for hardware, software licenses, and infrastructure setup than cloud-based solutions.

• Maintenance Costs

On-premises solutions may entail higher ongoing maintenance costs for hardware maintenance, software updates, and IT support compared to cloud-based solutions where these responsibilities are often managed by the service providers.

• Scalability

Cloud-based solutions often offer more scalability, allowing organizations to scale up or down based on their needs. This can be more cost-effective than investing in additional hardware or infrastructure for on-premises solutions.

3) Customization and Features

• Third-Party Integrations

Integrating the asset tracking system with existing software applications or third-party services may require additional development effort and incur integration costs.

• Advanced Features

The inclusion of advanced features such as predictive maintenance, real-time analytics, or integration with IoT sensors can add to the overall cost of the system.

• Tailored Solutions

The customization of the asset monitoring system to meet specific business requirements may involve additional costs for development, configuration, and testing.

Here’s a story explaining the importance of an Asset Tracking Software

Story Time Ritika, a new fleet manager, works for an FMCG brand that makes pre-mixes for cakes. With 100s of delivery trucks to manage, she relied on frantic driver calls to track progress. Delays were frequent, leading to frustrated clients. One day, a competitor boasted about their new “magic maps” aka asset monitoring systems that could show the location of the delivery fleet. Intrigued, Ritika explored asset tracking systems. Later, she installed GPS devices in the delivery assets and paired them up with TrackoBit’s user-friendly asset monitoring software– to gauge her delivery trucks. The transformation was immediate. Ritika could see her delivery fleet in real-time, reroute drivers around traffic jams, and optimize delivery routes. Late deliveries plummeted, customer satisfaction soared, and she even utilised underutilized assets better — which allowed her to expand her reach. Empowered by asset tracking, Ritika’s fleet operations thrived. The “magic maps” weren’t magic, but smart technology that gave her the control she needed to run a successful fleet. That’s the power of asset tracking systems.

Most Popular Reads:

📌 What is Consignment and Asset Tracking?

📌Why is Fleet Asset Tracking Software Important? (Top Reasons + Use Cases Listed)

Final Words

To conclude it all, asset tracking software is a powerful system that helps you keep a vigilant eye over your vehicles, assets, and mobile workforce.

Now that we are towards the end of this piece of writing, it is not wrong to say that figuring out the exact cost of an asset management software can be a difficult task; as the prices might vary according to various factors like volume and the size of the fleet. However, the various factors fluctuating the price will remain constant.

Asset tracking is essential not just for the logistics sector, but for all businesses that heavily depend on fleets for safe cargo transportation.

A reliable system that can integrate with different technologies is necessary for efficient asset monitoring, enabling you to monitor your cargo worldwide.

Ah, this rings a bell!

It seems like you’re describing TrackoBit, your ultimate asset-tracking solution!

Frequently Asked Questions

• What are the benefits of asset-tracking software?

  Asset tracking software streamlines inventory management, reducing loss and theft by providing real-time visibility into asset location and condition. It enhances efficiency by automating processes like audits and maintenance scheduling. With data analytics, it optimizes resource allocation, minimizes downtime, and ultimately boosts productivity and profitability.

• What are the basic components of asset tracking systems?

  Asset tracking systems typically consist of asset trackers/sensors, RFID or barcode tags affixed to assets, scanners or readers to capture tag data, software to manage and analyze asset information, and a database to store asset records. This allows for real-time monitoring, inventory management, and improved asset utilization.

• What are asset tracking cost factors and cost savings?

  Asset tracking cost factors include the initial investment in hardware (such as RFID tags, and scanners), software licensing fees, implementation costs, and ongoing maintenance expenses. Cost savings arise from reduced asset loss/theft, improved asset utilization, streamlined inventory management, and decreased manual labor hours.