Why You Need Small Tool Tracking Software

August 27, 2020 • 3 min read
Why You Need Small Tool Tracking Software
Home 5 Small Business 5 Why You Need Small Tool Tracking Software

If you’re in an industry that frequently uses tools, you’ll need small tool tracking software. Why? It’s the best way to save time and money when it comes to managing your tools.

So, no matter what your industry is, whether it be healthcare, construction, or restoration, if you’re using tools, small tool tracking software will help. You’ll be able to manage your assets better and ensure you’re working time-effectively and to the best of your business’ ability.

The time-savings alone create a high ROI, as you’ll be able to free up more time to do what’s important, rather than spending it trying to account for and find your things.

 

Tracking small tools

 

How Does Small Tool Tracking Software Help?

Small tool tracking software works by allowing you to log all of your tools onto a single system. On this system, you’ll be able to add crucial information related to your tools, such as calibration dates and financial information.

You’ll then be able to use QR code asset tags to link your physical tools to their digital counterparts. Every time you scan a QR code, the corresponding digital profile will open, and the last seen location of the tool will update.

This saves you time and money by allowing you to add all of the information you need to a single system. What this means is that you’ll no longer need to view and update spreadsheets.

Spreadsheets are prone to human error and become out of date every time an asset moves location or changes in status. Asset tracking software mitigates this by allowing you to track your small tools with ease.

The ease of use this provides you with saves you time, because you can retrieve small tools with ease, and money, because you can view and edit all the information you need to.

Who Can Use Asset Tracking Software?

The benefit of using asset tracking software is that it can be applied to a lot of different situations. Therefore, it isn’t an industry-specific solution and can help anyone.

So, if you’re looking for better fixed asset management, for example, you’ll be able to use asset tracking software. Then, you’ll be able to use the same system for IT asset management.

Asset tracking software will include small tool tracking software, so you’ll know that you have a usable, shareable, and scalable system. It’ll have many helpful features to help you save time and money on more than just tracking small tools.

construction equipment and tools tracking

itemit’s Equipment Management Software

itemit has grown over the past few years and has a suite of great, helpful and easy-to-use features.

Our equipment management software has grown by listening to what people need and integrating relevant and streamlined features that will give you a high ROI.

So, not only will you be able to use itemit as small tool tracking software, but you’ll also be able to use it to:

  • Lose fewer assets with location tracking
  • Create your fixed asset register
  • Track financial information
  • Check assets in and out
  • Assign assets to users
  • View how long assets have been in a location for
  • Track and manage maintenance
  • And more!

To find out more about what itemit can do for you, you can book a demo with the team by clicking the button below.

You can also speak to the team by emailing team@itemit.com or by phoning 01223 421611. Why not start your free trial of itemit by filling in the form below?

 

Or, you can check out these blogs:

How To Use Equipment Loan Management Software

Why Use Asset Tags?

What is RFID Asset Tracking?

Switch To Small Tool Tracking Software Now

Itemit App

Try itemit

Choose a better way to track your assets. Start your free 14-day trial now!

Beyond money saved, good inventory tracking makes operations smoother:

  • Faster picking and packing
  • Less time hunting for missing items
  • Better use of warehouse space
  • More productive employees
  • Smoother workflows between departments

These operational improvements create competitive advantages that make the inventory tracking process excellence a strategic asset.

Article by

Dr. Alex Wong is the CEO & Co-Founder of RedBite Solutions, a spin-out from the University of Cambridge and creators of itemit. For more than 2 decades, Alex’s innovations have disrupted industries and reimagined traditional solutions, delivering breakthrough results. A pioneer of the RFID EPC Network and IoT, Alex has shaped modern tracking technologies. RedBite powers the world’s largest RFID deployment across 60+ countries and launched itemit, a leading barcode, QR code, GPS & RFID SaaS tracking platform. Dr. Wong holds a PhD in Engineering from Cambridge and remains an embedded researcher, leading EU & Innovate UK projects to bridge research with real-world applications.

Choose a better way to track your assets

Start your free 14-day trial now. Instant access. No credit card details required.

Home 5 Small Business 5 Why You Need Small Tool Tracking Software

Asset tracking providers often present customers with two primary options: GPS technology or QR codes. These technologies frequently compete for market share, with many businesses unaware that they can serve similar functions. However, QR codes typically outperform GPS in versatility and functionality.

For businesses maintaining ICT asset registers or monitoring vehicle fleets, understanding the strengths and limitations of each system matters.

Let's examine these technologies alongside newer options like RFID and NFC to help you make better decisions about asset management.

GPS Tracking Technology Explained

GPS has become commonplace for drivers navigating unfamiliar routes. This satellite-based technology constantly transmits signals to your device, pinpointing your exact location. For asset tracking, GPS functions similarly by showing where specific items are located.

An interesting historical note: GPS was first developed for military applications before becoming available for civilian and commercial use.

Companies typically deploy GPS tracking for vehicle fleets, though many organisations also use it to monitor warehouse assets that move between locations. For complete information about managing physical business property, our guide on Fixed Assets provides valuable insights.

GPS for Business Asset Tracking

GPS tracking offers several distinct advantages for business asset management:

  • Real-time monitoring: GPS provides location data without requiring staff intervention, reducing human error while enabling 24/7 surveillance.
  • Geographic precision: Modern GPS systems achieve accuracy within 3-5 meters, sufficient for most commercial applications.
  • Theft recovery: According to insurance industry data, the ability to track stolen equipment improves recovery rates by up to 85%.
  • Movement history: Most GPS platforms store historical movement data, allowing businesses to analyse usage patterns and optimise asset deployment.
  • Geofencing capabilities: Companies can establish virtual boundaries that trigger alerts when assets leave designated areas, enhancing security protocols.
GPS technology

However, GPS technology brings notable limitations for comprehensive asset management:

  • Update frequency constraints: Standard business GPS systems refresh every 10-15 minutes, creating blind spots in high-speed movement scenarios.
  • Battery dependency: Active GPS trackers require power sources, necessitating regular maintenance or charging cycles.
  • Signal interference issues: GPS performance deteriorates inside buildings, underground locations, or areas with heavy concrete or metal infrastructure.
  • Implementation costs: Quality GPS hardware typically costs $50-300 per unit plus ongoing subscription fees ranging from $10-25 monthly per device.
  • Size and attachment challenges: GPS trackers remain too bulky for smaller assets and require secure mounting systems to prevent removal.
  • Limited data capacity: Unlike tag-based alternatives, GPS primarily delivers location data without storing extensive asset details.

These constraints explain why many operations managers complement GPS with alternative asset tracking tags that address these limitations. For stationary assets or equipment housed primarily indoors, passive tracking systems often deliver better value and functionality.

QR Code Technology

QR (Quick Response) codes resemble traditional barcodes but store significantly more information in their square matrix pattern. Nearly any smartphone or tablet can scan and interpret QR codes within seconds, making them highly accessible.

QR codes have quietly integrated into daily life—restaurants place them on tables for digital menus, theatres use them for seat-based ordering, and marketers embed them in advertisements for instant website access.

Like GPS, QR codes help monitor asset registers and track locations. However, they offer expanded functionality beyond simple location data. For those building IT equipment inventories, What is an IT Asset Register? explains key implementation concepts.

QR Codes in Practice

For businesses implementing QR code asset management, several key advantages emerge:

  • Information density: A single QR code can store up to 4,296 alphanumeric characters, enabling comprehensive asset profiles including serial numbers, purchase dates, warranty information, maintenance histories, and responsible departments.
  • Cost efficiency: QR labels cost between $0.05 and $0.30 per unit with no recurring fees, representing 70-95% cost savings compared to active tracking technologies.
  • Implementation simplicity: Deployment requires minimal technical expertise—standard label printers generate QR codes that attach via adhesive backing or cable ties.
  • Device compatibility: Over 97% of modern smartphones can scan QR codes without additional hardware or specialised apps.
  • Customisation options: Enterprise QR solutions allow for custom branding, colour-coding by department, and tamper-evident features.
  • Dynamic updating: Cloud-connected QR systems enable real-time information updates without replacing physical tags.

Integration capabilities: Modern QR systems integrate with ERP, CMMS, and accounting software through standard APIs, creating unified data ecosystems.

QR system

However, QR technology presents several notable limitations:

  • Scan dependency: QR codes remain passive—they require manual scanning rather than automatically broadcasting locations.
  • Line-of-sight requirement: Tags must be visible and accessible to be scanned, which can be challenging for assets in hard-to-reach locations.
  • Environmental vulnerabilities: Standard QR labels can degrade from UV exposure, abrasion, or harsh chemicals, though industrial-grade options mitigate this issue.
  • Security considerations: Public QR codes can be replaced or duplicated without sophisticated tampering detection, creating potential security vulnerabilities.
  • Process reliance: Effectiveness depends entirely on consistent scanning protocols and staff compliance.
  • Location triangulation limits: Without supplementary technologies, QR codes cannot provide autonomous location data.

To address these limitations, many organisations implement hybrid systems where QR codes work alongside checkpoint scanners at entry/exit points or integrate with Wi-Fi positioning systems for approximate indoor location data. This approach balances QR's information richness with improved location awareness without the full cost of active GPS or RFID asset tags.

RFID and NFC: Advanced Asset Tracking Alternatives

RFID vs NFC technologies represent sophisticated alternatives to traditional tracking methods, each with distinct operational characteristics:

RFID Technology Specifications

RFID asset tags operate through radio frequency identification in three primary frequency ranges:

  • Low Frequency (LF, 125-134 kHz): 10cm read range, slower data transmission, excellent performance around metals and liquids, commonly used for animal tracking and access control
  • High Frequency (HF, 13.56 MHz): 10-30cm read range, moderate data speeds, used extensively in library books, pharmaceuticals, and payment cards
  • Ultra-High Frequency (UHF, 856-960 MHz): 3-15m read range, fastest data transmission, susceptible to interference from liquids and metals, widely deployed in supply chain tracking and retail inventory

RFID implementation offers distinct advantages:

  • Batch scanning capability: A single reader can simultaneously capture 200+ tags per second, reducing inventory time by up to 95% compared to barcode methods
  • Non-line-of-sight reading: Tags function even when covered, dirty, or embedded within products
  • Durability: Industrial-grade tags withstand temperatures from -40°F to 400°F, chemical exposure, and mechanical stress
  • Data security: Enterprise RFID systems employ encryption standards like AES-128 to prevent unauthorised access
  • Automated inventory: Fixed RFID portals at entry/exit points create autonomous tracking without human intervention

Hardware costs present the primary barrier to RFID adoption:

  • Tag costs: $0.10-$0.50 for passive paper tags; $2-$25 for hardened industrial tags
  • Reader costs: $500-$2,000 for handheld units; $1,500-$5,000 for fixed portal readers
  • Infrastructure costs: Enterprise implementations typically require middleware ($5,000-$25,000) plus integration services

NFC Technology Applications

RFID asset tags operate through radio frequency identification in three primary frequency ranges:

  • Low Frequency (LF, 125-134 kHz): 10cm read range, slower data transmission, excellent performance around metals and liquids, commonly used for animal tracking and access control
  • High Frequency (HF, 13.56 MHz): 10-30cm read range, moderate data speeds, used extensively in library books, pharmaceuticals, and payment cards
  • Ultra-High Frequency (UHF, 856-960 MHz): 3-15m read range, fastest data transmission, susceptible to interference from liquids and metals, widely deployed in supply chain tracking and retail inventory

RFID implementation offers distinct advantages:

  • Batch scanning capability: A single reader can simultaneously capture 200+ tags per second, reducing inventory time by up to 95% compared to barcode methods
  • Non-line-of-sight reading: Tags function even when covered, dirty, or embedded within products
  • Durability: Industrial-grade tags withstand temperatures from -40°F to 400°F, chemical exposure, and mechanical stress
  • Data security: Enterprise RFID systems employ encryption standards like AES-128 to prevent unauthorised access
  • Automated inventory: Fixed RFID portals at entry/exit points create autonomous tracking without human intervention

Hardware costs present the primary barrier to RFID adoption:

  • Tag costs: $0.10-$0.50 for passive paper tags; $2-$25 for hardened industrial tags
  • Reader costs: $500-$2,000 for handheld units; $1,500-$5,000 for fixed portal readers
  • Infrastructure costs: Enterprise implementations typically require middleware ($5,000-$25,000) plus integration services

This is Heading 3

This is Heading 4

Experience asset visibility
Itemit App

Try itemit

Choose a better way to track your assets. Start your free 14-day trial now!

Keep Learning

itemit Blog

Tips, guides, industry best practices, and news.