What is asset tracking? Explanation, methods and applications

What is asset tracking?

Asset tracking is the recording of the location, movements, status and use of physical business assets. This is done with a tracker or tag on the object, a connection that transmits the data and software that displays everything clearly. The result: an up-to-date picture of the assets in your organisation. A basis for making decisions and optimising.

What are assets?

An asset is any physical business resource that has value for your organisation. In practice, it means anything that moves, is moved or can go missing. For example:

• Motorised equipment: excavators, wheel loaders, aerial work platforms, forklifts, generators and compressors.
• Non-motorised equipment: trailers, semi-trailers, containers, site cabins, road plates, site fencing and traffic management equipment.
• Small equipment and tools: plate compactors, measuring equipment, cargo boxes, scaffolding components and hand tools.
• Load carriers and stock: pallets, roll containers, gas cylinders, transport racks and returnable packaging.
• Vehicles: company vans and trucks, although these usually fall under fleet management.

Other terms for asset tracking

You will come across various terms that essentially mean the same thing: equipment tracking, equipment monitoring, tracking business assets and track and trace for equipment. There are also three terms that are often used interchangeably:

• Asset tracking system: the combination of hardware, connectivity and software.
• Asset tracker: the hardware attached to the object.
• Asset tracking software: the platform where the data comes together.

Why should you track your assets?

In capital-intensive sectors such as construction, infrastructure and transport, equipment represents a large part of a company's capital. Yet without asset tracking, you have no reliable overview of your assets and where they are. That costs money. In theft, in time spent searching, in unnecessary purchases and in downtime.

Reducing theft and loss

For many companies, theft is the direct reason to start with asset tracking. The BauWatch Crime Report for the Construction Sector 2025, based on a survey of 400 Dutch construction professionals, shows how great the impact is:

• 59% saw crime on construction sites increase compared with the previous year.
• 48% experienced project delays due to crime, of one to four weeks on average.
• 45% worked on a project where stolen materials had to be replaced. 23% worked on a project that went over budget as a result.
• According to 53% of respondents, small and power tools are stolen most often.
• Only 16% report that trackers are used at the sites where they work.

The same applies in transport. According to the Dutch Vehicle Crime Insurance Bureau (Stichting VbV), 1,750 trucks were stolen in the Netherlands in 2024, of which 862 were recovered. This means that around half of the stolen trucks were never found.

Asset tracking does not prevent theft on its own. But the system immediately flags when equipment moves where or when it shouldn't, for example outside working hours or outside a defined zone. That increases the chance of recovering it and lets you report the theft sooner.

Less time searching and fewer duplicate purchases

Not all loss is theft. Equipment often simply drops out of sight. It is left behind after a project ends, stays with a subcontractor longer than planned or is used at a different location than recorded. As long as nobody knows where it is, it costs time to search for it, or replacement equipment is hired. That leads to unnecessary rental costs and to purchasing resources you already own.

Better deployment and planning

With up-to-date location and usage data, you can see which equipment is used a lot and which is standing idle. This lets you allocate equipment across projects and customers based on facts. And you can also see where your equipment fleet is larger than necessary.

Maintenance based on usage

Much equipment is maintained based on operating hours or mileage. If these are recorded automatically, you can schedule maintenance when it is actually needed. That reduces the risk of unexpected breakdowns and extends the life of your equipment.

Accurate invoicing and job costing

Do you rent out equipment or recharge it to projects? Then asset tracking shows how long equipment was used and where. That makes invoicing and job costing verifiable and prevents disputes afterwards.

Less administration

Lists and spreadsheets often lag behind reality. Automatic recording takes over a large part of that work. You get more reliable data, with less effort from your employees.

How does asset tracking work?

Every asset tracking system consists of three building blocks: hardware, a connection and software. Together they determine how accurate, how up to date and how affordable tracking an asset is.

Hardware: tracker or tag

Each asset is fitted with a tracker or tag that identifies the asset or determines its location. This can be a GPS tracker that determines its own position. Or a tag that only transmits a unique code or allows it to be read. Trackers on motorised equipment often use the power supply of the machine or vehicle. Trackers and tags on equipment without power often run on their own battery.

Connection: from asset to platform

The data has to get from the asset to a central system. A GPS tracker usually sends its position via the mobile network, for example via LTE-M or NB-IoT. These are network technologies designed specifically for devices that send little data and need to run on a battery for a long time. Other solutions use a low-power network such as LoRaWAN. Tags without their own connection are read by a reader or gateway nearby, which passes the data on.

Software: overview and alerts

The platform brings all the data together. There you can see, for example, where each asset is and how many operating hours have been logged. Historical data is often available too, so you know where an asset was at a given moment.

Geofencing and alerts

Asset tracking systems combined with geofencing often let you set up alerts. With geofencing, you define virtual zones, such as a construction site, a depot or a customer location. If an asset leaves that zone, you receive an alert. This lets you act immediately, rather than discovering afterwards that something has gone missing.

What methods are there to track assets?

There are six common methods, from manual to fully automatic. They differ in range, accuracy, energy consumption and the amount of manual work they require.

Manual registration

Paper lists, issue cards and spreadsheets are the oldest form of asset tracking. They require no investment in technology, but depend on discipline and are highly error-prone. Manual registration therefore works mainly for small numbers at a single fixed location.

Barcodes and QR codes

A label with a barcode or QR code gives each asset a unique identity. When equipment is issued or returned, you scan the label with a scanner or smartphone. That is quick and inexpensive. But registration only takes place at the moment of scanning. Between two scans, you don't know where the asset is.

RFID tags

RFID stands for radio-frequency identification. An RFID tag exchanges data wirelessly with a reader or gateway, without line of sight and without anyone having to scan it. There are two types: passive and active tags.

Passive RFID tags have no battery of their own. They are activated by the signal from a reader and have a range of a few centimetres to a few metres. You mainly see them at gates, in warehouses and at issue points.

Active RFID tags do have their own battery and transmit a signal themselves at fixed intervals. They often transmit in the sub-GHz band: frequencies below 1 gigahertz, in Europe usually around 868 MHz. Bluetooth and Wi-Fi transmit at 2.4 GHz. Signals at these lower frequencies travel further and penetrate obstacles better. Want to track equipment outdoors and on the move? Then active RFID is often the most suitable choice.

Bluetooth Low Energy (BLE)

BLE tags regularly transmit a signal that is picked up by a gateway or smartphone nearby. They use relatively little energy and therefore last quite a long time on a battery. Their range is limited, though. Standard BLE tags typically reach tens of metres, depending on the tag and the environment. That is shorter than active RFID.

GPS trackers with mobile connectivity

A GPS tracker determines its own position via satellites and sends it via the mobile network. This works anywhere with satellite reception and network coverage. That makes GPS a widely used method for valuable and mobile equipment. Inside buildings and in closed containers, reception is limited. And because a GPS tracker needs its own receiver and mobile connection, it requires more energy and mounting space than a tag.

LoRaWAN and other low-power networks

LoRaWAN is a network for devices that send small amounts of data over long distances. Trackers on this network run for years on a battery, but send data less often and in less detail. They suit assets that rarely move, or where an approximate location is sufficient.

What are asset tags?

An asset tag is a compact label or small device that you attach to a business asset. It gives that asset a unique digital identity. A tag usually does not determine its own location. That follows from where and when the tag is read.

How does it differ from a GPS tracker?

A GPS tracker has its own satellite receiver and a mobile connection. It determines its own position and transmits it. An active asset tag sends data to the gateway, without its own GPS. That makes a tag smaller and more energy-efficient. It does depend on a gateway nearby.

How does the gateway principle work?

A gateway is a device with its own positioning and connectivity that registers tags nearby. Such a gateway is fitted, for example, in a company van, on a truck or at a fixed location such as a depot or site cabin. The gateway reads the data from the tag. This means equipment without its own GPS still appears on the map.

What is the best way to track your assets?

For business assets without their own power supply, active RFID is often the most suitable method. The tags have a long range, maintain a connection in difficult environments and last for years on a single battery. GPS is preferred for assets that stand in remote locations for long periods, outside the range of a gateway.

Which method suits which asset? Ask yourself these four questions:

1. Does the asset have its own power supply? Motorised equipment can supply power to a GPS tracker. This hardware can often also be connected to the CAN bus and then provides machine or vehicle data in addition to the location. For equipment without power, battery life is decisive. A battery-powered GPS tracker uses more power than an RFID tag. As a result, the battery of an RFID tag often lasts for years.
2. What environment is the asset in? Steel, concrete and glass weaken radio signals. Active RFID tags in the sub-GHz band maintain a connection more often where signals at higher frequencies drop out. Standard Bluetooth tags typically reach tens of metres. That can be enough indoors, close to a receiver, or when employees scan with their smartphone. Beyond that range, the signal drops out. That makes active RFID usable in most conditions, from workshop to construction site.
3. Does the asset regularly come near a gateway? With RFID and Bluetooth, proximity to a gateway is important. Thanks to the longer range of RFID, you need fewer gateways. The denser the network of gateways, the more up to date the location. Does an asset stand alone in a remote location for a long time? Then it won't pass a gateway and a GPS tracker is the better choice.
4. How many items are involved? With hundreds or thousands of items, the cost and management per item weigh heavily. An RFID tag has no GPS module and no SIM card. That makes RFID suitable for large numbers.

Why a combination often works best

A GPS tracker on every item is rarely feasible for small equipment. That is why many organisations opt for a layered approach:

• Large and valuable equipment with a power supply gets its own GPS tracker.
• Equipment without power gets an RFID tag, which is read by a gateway in the vehicle transporting it or at the location where it is kept.
• Assets in remote locations get a battery-powered GPS tracker.

This way, you know where all your equipment is, in a way that suits its value and use.

What is the difference between asset management and asset tracking?

Asset management is the management of business assets throughout their entire life cycle. Asset tracking is recording where those assets are, how they perform and how they move. In short: asset tracking provides the data that asset management relies on. The two terms are often used as synonyms, but they describe different levels.

Two meanings of asset management

The term asset management is used in two worlds. In the financial world, it refers to wealth management: managing investments such as shares, bonds and funds. In the technical and operational world, it refers to managing physical business assets, such as machines, vehicles, installations, buildings and infrastructure. This article is about the second meaning.

Asset management: getting value from physical assets

Asset management is about getting as much value as possible from your physical business assets. That requires a balance between performance, risk and cost. That balance applies throughout an asset's entire life cycle: from purchase through use and maintenance to replacement or disposal.

Asset management answers questions such as:

• What equipment do you need?
• When is it serviced and inspected?
• When is replacement more cost-effective than repair?
• What is the residual value?

Planned maintenance reduces the risk of unexpected downtime and costly repairs. That increases the safety and reliability of your equipment.

Asset tracking: the operational reality

Asset tracking answers the operational questions: where your assets are, how they perform and how they move. It provides facts about day-to-day use. Without those facts, asset management relies on assumptions, such as an estimated number of operating hours or an outdated list of locations.

What is the difference between fleet management and asset tracking?

Fleet management focuses on vehicles and the people who drive them. Asset tracking focuses on all physical business assets, including those without an engine or driver. The difference lies in the object and in the questions you answer with it.

Fleet management

Fleet management is about managing a vehicle fleet. Think of questions such as:

• Where are your vehicles driving?
• Which trips have been made?
• What is the driving behaviour like?
• What is the fuel consumption?
• When is maintenance needed?

Trip logging and compliance with driving and rest time rules also fall under this. The driver plays a central role.

Asset tracking

Asset tracking is about tracking business assets, whether they are driven, towed or stationary. It answers questions such as: where is the equipment, who is using it, how many operating hours has it logged and is it still at the right location?

Where fleet management and asset tracking meet

In practice, the two overlap. A truck pulls a semi-trailer, a company van carries tools, a low-loader takes an excavator to a project. Do you track vehicles and equipment in separate systems? Then you only see half the picture. When they come together in one platform, you can see which equipment is on the road with which vehicle and where it has been delivered.

Asset tracking in practice

Asset tracking is used in every sector where valuable resources move, are spread across locations or are used by multiple people. The questions differ per sector. The principles remain the same.

Construction

In construction, equipment is spread across changing projects. Machines, generators, tools and other equipment move from site to site and are shared by crews and subcontractors. Construction sites are also a well-known target for theft. With asset tracking, you can see what is on which project, what was left behind after completion and what is moving outside working hours.

Infrastructure

Infrastructure projects often stretch over kilometres, along roads, railways and waterways. Besides heavy equipment, they involve large numbers of movable equipment. That volume is almost impossible to keep track of manually. With insight into quantities and locations, you prevent equipment from being left behind or deployed twice.

Transport and logistics

In transport, this includes semi-trailers, trailers, containers and load carriers. A tractor unit and a semi-trailer are regularly uncoupled and used in other combinations. With asset tracking, you can see where each semi-trailer is, which vehicle it is travelling with and how long it has been standing at a customer's site. That helps with planning and with recovering load carriers that are not returned.

Rental

As a rental company, your equipment is by definition out of the door. Location and usage data show where equipment is, how intensively it is used and when it needs maintenance. That supports accurate invoicing and timely return planning.

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Other sectors

Asset tracking is also widely used outside construction, infrastructure and transport:

• Landscaping and municipal services: mowers, trailers, gritters and small machines spread across multiple locations.
• Industry and manufacturing: returnable packaging, tools, measuring equipment and internal transport equipment.
• Installation and service: tools and measuring equipment that travel with technicians in company vans.
• Events: fencing, stage parts, generators and lighting that are set up and removed for each event.

Asset tracking at GPS-Buddy

GPS-Buddy develops its own hardware, firmware and software for asset tracking. This way, each type of asset gets the technology that suits its value and use. All data comes together in the Flowter platform.

XT-4: the gateway in vehicles and machines

The XT-4 is GPS-Buddy's central device. It reads data via the CAN bus and determines its position via GPS. This way, the XT-4 provides location, operating hours and machine data from vehicles and motorised equipment. The XT-4 also acts as a gateway for asset tags: tags nearby are read automatically and are assigned the location of the XT-4. For semi-trailers, there is the XT-4 Rugged, which also reads EBS data from the trailer.

RFID asset tags: visibility of equipment without a power supply

For equipment without its own power supply, there are GPS-Buddy's RFID asset tags. Attached to equipment, they provide not only the location, but also usage data such as operating hours, for up to eight years on a single battery.

RFID technology means: no expensive GPS module, no SIM card and no heavy battery. The signal from the tags reaches ten times as far as an industrial Bluetooth signal. This also makes it easier for the signal to penetrate concrete and other obstacles.

The tags are available in different versions: from a compact tag for small equipment to tags with extended range or with sensors for temperature and humidity. There is a suitable tag for virtually every situation.

AT-4: GPS tracker for assets outside the range of a gateway

For assets that are left behind on their own or are outside the range of a gateway, there is the AT-4. This tracker has its own GPS and a 4G connection. That makes it suitable for trailers, containers, generators and other equipment that stands in a remote location, separate from a vehicle.

Asset tracking goes beyond knowing where your equipment is

Asset tracking starts with the question of where your equipment is. That alone saves time spent searching, extra rental and losses. With asset tracking from GPS-Buddy, you know more than just the location of your assets. You can see, for example, how long equipment has been used, which vehicle is transporting it and whether it has left a defined area.

The real value comes when that data is combined with data from your vehicles, machines and people. The picture then shifts from individual assets to your entire organisation. In the same platform where you see the location of your equipment, you can also see the emissions of your vehicle and machine fleet, how your drivers drive, what a trip really costs and when maintenance or an inspection is due. This gives you insight into how your organisation performs as a whole. GPS-Buddy brings all this data together in Flowter, under the name Asset Intelligence. Data becomes insight, insight becomes decision.

Curious how our solutions can contribute to your organisation?

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