Blog What is an Asset Tag? Definition, Benefits, and How to Use Them

What is an Asset Tag? Definition, Benefits, and How to Use Them

asset tag on company laptop

An asset tag is an identification label placed on physical assets such as equipment, furniture, IT hardware, or vehicles. These tags contain unique identifiers, including barcodes, QR codes, or RFID tags, allowing businesses to track, manage, and secure their valuable items. Asset tagging helps in inventory control, theft prevention, and maintenance tracking, making it an essential part of asset management systems.

Understanding Asset Tags

Asset tags are essential tools for businesses that need to track, manage, and secure their valuable physical assets. These tags are used across industries to improve inventory accuracy, prevent loss or theft, and enhance operational efficiency. In this guide, we’ll explore what asset tags are, why businesses use them, the different types available, and how to choose the right one for your needs.

Definition of Asset Tags

An asset tag is a label or tag affixed to a physical asset, such as equipment, tools, vehicles, or IT devices, that helps in identifying and tracking the item. These tags often contain unique identifiers like serial numbers, barcodes, QR codes, or RFID technology. Businesses use asset tags for monitoring, inventory control, and ensuring compliance with asset management policies.

Key characteristics of asset tags include:
✔️ Unique identification numbers or barcodes
✔️ Durable materials suitable for different environments
✔️ Integration with asset tracking software for real-time updates

Why Businesses Use Asset Tags

Businesses rely on asset tags for several reasons, including:

Inventory Management

Asset tags make it easy to track equipment, tools, and inventory by providing a unique identifier for each item. This reduces manual errors and improves efficiency.

Loss Prevention & Security

By tagging assets with identifiable labels, businesses can deter theft and track misplaced or stolen items, improving asset recovery.

Maintenance Scheduling

Asset tags can store maintenance records, helping businesses track repairs, schedule servicing, and extend the lifespan of their equipment.

Regulatory Compliance

Industries such as healthcare, manufacturing, and government agencies require businesses to maintain accurate asset records. Asset tags help companies meet these compliance standards.

Different Tags for Different Purposes 

Not all asset tags are created equal. Different types of asset tags are designed for specific applications, environments, and levels of security. Here’s a breakdown of the most common types:

Barcode Asset Tags

Green asset tag

What They Are: Barcode asset tags use a unique barcode printed on a label, allowing businesses to track assets by scanning them with a barcode reader or mobile app.

Best For: Inventory management, retail, warehouses, and office equipment tracking.

Advantages:
✔️ Cost-effective and easy to implement
✔️ Works with standard barcode scanners
✔️ Simple asset tracking integration

Considerations: Barcode tags require a direct line of sight to be scanned and may not be ideal for environments where assets are frequently moved.

RFID Asset Tags

What They Are: RFID (Radio Frequency Identification) asset tags use embedded microchips to wirelessly transmit asset data to RFID readers.

Best For: Large-scale asset tracking, logistics, and industries requiring fast, bulk scanning.

Advantages:
✔️ Allows for remote scanning without line-of-sight
✔️ Enables fast tracking of multiple assets at once
✔️ Ideal for high-security environments

Considerations: RFID tags are more expensive than barcode tags and require specialized RFID readers.

Tamper-Evident Asset Tags

Tamper-Evident Asset Tag

What They Are: Tamper-evident tags are designed to show visible signs of tampering when someone attempts to remove or alter them.

Best For: High-value assets, IT equipment, and industries needing strict security measures.

Advantages:
✔️ Deters theft and unauthorized asset transfers
✔️ Provides evidence of tampering
✔️ Available in destructible, VOID-pattern, and residue-leaving designs

Considerations: These tags are not reusable and can be more expensive than standard barcode labels.

Metal Asset Tags

What They Are: Metal asset tags are made from anodized aluminum or stainless steel, offering superior durability in harsh environments.

Best For: Outdoor equipment, manufacturing machinery, and environments with extreme temperatures or chemical exposure.

Advantages:
✔️ Highly durable and weather-resistant
✔️ Long-lasting and scratch-proof
✔️ Can be laser-etched for added security

Considerations: Metal tags are more expensive and require special adhesives or rivets for attachment.

Harsh Environments Asset Tags

What if you store heavy equipment outside or clean assets with chemical abrasives? Our asset tags withstand almost any environment and are designed to last. Many of our materials make great asset tags for equipment. We have three types of asset tag materials for tough outdoor conditions: Aluminum Foil, Metal, and LexSaver®plus.

LexSaver®plus asset tag

LexSaver®plus is what we recommend for harsh environments. This material is resistant to heat, tearing, excessive abrasion, and stretch. The protective coating is UV resistant and has an embossed velvet finish that is ultra-durable. LexSaver®plus is best for smooth surfaces, and it will not conform to uneven surfaces.

Anodized aluminum foil asset tag

Anodized Aluminum Foil asset tags are the most flexible asset tags we offer. This material is perfect for curved surfaces. These tags are incredibly strong, and the barcodes and serial numbers are inside the anodized layer of the label.

Anodized metal asset tag

Anodized Metal tags are great for equipment exposed to sunlight, salt spray, high temps, cleaning solvents, or constant abrasion. The material permanently etches the colors and graphics, and it won’t crack, chip, or peel over time. This material also has our strongest adhesive.

How to Choose the Right Asset Tag for Your Business

Choosing the right asset tag depends on several factors, including environmental conditions, security needs, and budget. Consider the following when selecting the best asset tag for your business:

1️⃣ What type of assets are you tagging?

  • Office equipment → Barcode or QR code tags
  • Industrial machinery → Metal or RFID tags
  • High-security assets → Tamper-evident tags

2️⃣ Where will the tags be used?

  • Indoor settings → Polyester or laminated barcode tags
  • Outdoor/harsh environments → Metal or LexSaver®plus tags

3️⃣ What level of security do you need?

  • Basic tracking → Standard barcode tags
  • Anti-theft protection → Tamper-evident or RFID tags

4️⃣ Do you need automation?

  • RFID tags offer the best automation for large-scale asset tracking.

5️⃣ Budget considerations

  • Barcode tags are the most affordable, while metal and RFID tags are costlier but offer long-term benefits.

FAQs About Asset Tags

What is an asset tag?

An asset tag is a label used to uniquely identify, track, and manage physical assets like equipment, vehicles, and IT devices. These tags often contain barcodes, QR codes, or RFID technology to help businesses monitor and secure their valuable assets.

What is an asset tag used for?

Asset tags are used for inventory tracking, loss prevention, maintenance scheduling, and compliance reporting. They help businesses manage assets efficiently and reduce theft or misplacement.

What is the difference between an asset tag and a serial number?

An asset tag is a unique identifier attached to a physical item for tracking purposes, while a serial number is a manufacturer-assigned code that identifies a product model or batch.

What are the types of asset tags?

Common types include barcode asset tags, QR code asset tags, RFID tags, metal asset tags, tamper-evident asset tags, and durable outdoor asset labels.

How do asset tags help with inventory management?

Asset tags allow businesses to track inventory efficiently by providing a unique identifier for each asset. This enables quick asset retrieval, reduces errors in manual tracking, and improves overall inventory accuracy.

What industries benefit from using asset tags?

Industries such as healthcare, manufacturing, IT, education, logistics, and government agencies benefit from asset tagging by improving asset tracking, reducing loss, and enhancing operational efficiency.

How do tamper-evident asset tags work?

Tamper-evident asset tags are designed to show visible signs of tampering if someone attempts to remove them. These tags leave behind a residue or break apart, making it clear that an asset has been altered or moved.

What materials are asset tags made of?

Asset tags can be made from polyester, anodized aluminum, stainless steel, or laminated plastic, depending on durability needs and environmental exposure.

Can asset tags be customized?

Yes, asset tags can be customized with company logos, unique identification numbers, barcodes, QR codes, or color coding to match specific business needs.

What is the best way to apply asset tags?

To ensure longevity, asset tags should be applied to a clean, dry, and smooth surface. For extreme conditions, industrial adhesives or riveted metal tags may be used for extra durability.

How do RFID asset tags differ from barcode asset tags?

RFID asset tags use radio-frequency technology to transmit data wirelessly, allowing for bulk scanning from a distance. Barcode asset tags, on the other hand, require direct line-of-sight scanning.

How long do asset tags last?

The lifespan of an asset tag depends on the material and environment. Metal or anodized aluminum tags can last for decades, while paper or standard plastic tags may last only a few years under heavy use.

Can asset tags be removed and reused?

Most asset tags are designed for permanent application. Some types, like tamper-evident tags, break apart when removed, while others, such as magnetic or reusable barcode labels, can be transferred to different assets.

Final Thoughts

Asset tags are an essential part of modern asset management. Whether you need simple barcode labels for inventory tracking or high-security tamper-proof tags, choosing the right asset tag can improve efficiency, security, and compliance for your business.