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Reduce Tool Costs with RFID Tool and Equipment Tracking

Initially, most companies start out tracking their tools manually via clipboards, whiteboards, or spreadsheets. As the company grows, so too does their need for a more accurate solution to minimize not only labor and material costs, but also tool costs. 

One challenge facing these companies is that while labor costs and material costs are easily understood, tool usage often is not.

To reduce tool cost, companies need to maximize usage. When companies get busy with many different jobs in the field, it’s very common for them to buy or rent more of a specific tool when they can’t find it.

For example, if a contractor has a job Monday and needs five drills and can’t find them, the company’s tool room manager will likely purchase or rent five new drills then ship them overnight to the job site rather than waste more time locating the original drills.  

If the company had an RFID tool and equipment tracking system in place, not only could they have located the drills, but they would have saved the money spent on the purchase or rental of the five new drills.

What is RFID tool and equipment tracking? Tool tracking is the management of an asset used to build something, maintain something, or repair a process via the use of RFID tags.

What types of tools can be tracked? Typical tools that would be tracked include, but are not limited to:

• Hand tools, power tools, saws, benders, power equipment used to make things
• Machinery used for manufacturing, cutting wheels and grinding wheels
• IT equipment which is built into many of the computer-operated tools

Benefits of RFID Tool and Equipment Tracking
The overarching benefits include speed, accuracy and efficiency. But that’s not all.  

Easily Locate Tools Faster

Tool room managers are able to save their companies both time and money by locating tools faster using an RFID tool and equipment tracking system.

The tool room manager can easily see where the tool or equipment is, who has it, and any other helpful details with just a few clicks.

Minimizes Downtime

Another major benefit of RFID tool and equipment tracking is that it can help companies minimize downtime.

Why is minimizing downtime important? Workers such as electricians, control engineers, plumbers and crane operators are all highly compensated trades and when they cannot work because they’re waiting for a tool to do something, that downtime costs the company money.

Simplifies Check-In and Check-Out

The process of checking tools and equipment in and out is a breeze with an RFID tool and equipment tracking system in place.

Once both the employee and tool information are in the system, employees can easily check tools and equipment in and out by reading the RFID tag. The asset tracking software will provide information about where that tool is coming from and where it should be stored. 

Track Preventive Maintenance, Increase Tool Lifespan

An RFID tool and equipment tracking can also track preventive maintenance such as calibration, safety inspections, and general repairs. Preventive maintenance can be set up per tool type.

All tools have a lifespan. It’s important to know both the cost and the lifespan of each tool – an RFID tool and equipment tracking can simplify this process and can help companies repair or replace the tools on time before they become decommissioned.

How do I measure the Return-On-Investment (ROI) of an RFID tool and equipment tracking?

With an RFID tool and equipment tracking solution in place, ROI is measured in several ways, including:

• Tool room labor savings. How much of their days do your tool room managers spend chasing tools and equipment? Contacting multiple job sites to ask if they have a particular item? That wasted time will be eliminated with an RFID tool and equipment tracking system in place.
• Less tools and equipment lost. An RFID tool and equipment tracking system enables you to know where each of your tools is at any given time. You can track and report what’s with an employee or at a specific location in seconds.
• Savings on unnecessary tool purchases/replacements. How many tools or how much equipment is your company purchasing each year due to not being able to locate the original items in time for a job?
• Savings on unnecessary tool or equipment rentals. How many tools or equipment is your company renting each year because the original items have gone missing or can’t be located?
• Discourages theft on job sites. Companies have tools and equipment stolen on job sites all the time – an RFID tool and equipment tracking system can potentially serve as a deterrent to would-be thieves.
• Field labor savings. An RFID tool and equipment tracking system eliminates unnecessary, paid downtime of your skilled workers. If someone doesn’t have the items they need they are idle and the company is paying for their time.   

Who benefits the most from an RFID tool and equipment tracking system? Due to its flexibility, anyone from small businesses to large corporations can use and benefit from an RFID tool and equipment tracking system.

Without a tool and equipment tracking system in place, companies can easily spend tens of thousands of dollars each year on unnecessary tools – and many do.

We Can Help

Our RFID tracking experts can help you identify the best tool and equipment tracking solution to meet your company’s specific needs. To learn more, request an RFID tracking consult today.