Equipment Labeling and

Asset Tagging Guide

Asset and equipment control for organization and efficiency.
 Introduction

Industrial settings have so many moving pieces to manage. There’s

manufacturing to complete, equipment to maintain, safety standards to comply
with, cleaning to do—you can add to this list forever. Any successful and
efficient workplace is maintaining control of equipment, supplies, and inventory,
but this part can be hard to track. With all the layers of work managers need to
watch, maintaining any kind of organizational/tracking system for your company
can be difficult, and can even feel insurmountable.

Equipment labeling and

asset tagging improve
production and reduce loss
for companies in all fields
8 Wastes of Lean
of business. Equipment and Defects
tools are brought constantly products or services that
don’t meet company standards
to make workers’ jobs easier,
and to make the facility more Waiting
the down time between steps
efficient, but these items in a production process
can only have an impact if Motion
workers know that these people or equipment
moving more than necessary
tools are available, and, more
importantly, are able to find Inventory
making/storing more
them. Often times, these tools than meets customer demand
get used once, then end up in
Overproduction
so darkened corner of a supply producing more of a product
closet, or riding around in the than customer demand requires

maintenance truck, or just Excessive Processing

steps that don’t add value
plain disappear. for customer but cost resources

5S, the foundational concept Transportation

unnecessary movement of
of Lean manufacturing, states materials in production processes

that a company improves its Non-Utilized Talent

efficiency and organization by not making full use of employees

following these steps: Sort,

Set in Order, Shine,
Standardize, Sustain.

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 Equipment labeling and asset tagging fit into the Set in Order stage of 5S. The
Set in Order phase focuses on eliminating one of the 8 Wastes of Lean: Waiting.
this stage of the process is intended to combat the time facilities lose waiting for
machines to get fixed, production stages to finish, and workers to find the tools
they need.

Set in Order ensures that all items in a facility—tools, equipment, etc.—has a

designated place. How does labeling and asset tagging fit into this? It’s simple:
these visual tools help ensure that the organizational system for Set in Order is
followed. In this way, labeling and tagging helps with the Sustain stage of the 5S
process as well.

In this guide, we’ll explain the differences between equipment labeling and asset
tagging, what situations call for which organizational strategy, and how to plan
and implement labeling and tagging programs in your facility.

Equipment Labels vs. Asset Tagging: The Difference

Both equipment labeling and asset tagging operate with the same objective: to
make your workplace more manageable by organizing the things—tools, supplies,
equipment, etc.—you use to do your job.

The biggest difference between the two organizational systems is this:

equipment labeling simply identifies a tool and where it belongs, while asset
tagging uses scannable codes to track precisely where an item is.

For companies that operate out

of one, manageably-sized facility,
equipment labels will probably be
sufficient. For major corporations
with facilities so big you might
have to leave ten minutes before
your meeting to ensure you make
it on time, asset tagging might be
the more viable option.

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 But large corporations aren’t the
only ones who benefit from asset
tagging over equipment labeling.
Some companies’ operations are
so spread out that asset tagging
is the best option. For example, a
towing company that covers a 100-
mile stretch and has a few different
facilities might benefit from asset
tagging because the coding system
allows them to see exactly where the
desired equipment is located.

Assess your company’s needs. Here are a few questions to get you started in
the right direction.

• Which option best sets up my team for success?

• Is my facility spread out? Do we often lose track of equipment/tools

that end up resurfacing at other locations?

• Is there a lot of borrowing between departments?

Equipment Labels

Equipment labels should name

what an item is, who it belongs
to (the production team, the
marketing department, etc.),
and where it should be stored.
Creating a tool organization
system is an important step
in the right direction, but these
systems only work if workers
know where to put them back.
These labels are paramount to
maintaining organization and
improving overall efficiency.

Equipment Labeling and Asset Tagging Guide www.creativesafetysupply.com/guides | 1-877-356-6584

 Types of Labels

Adhesive vinyl labels are the most commonly-used choice. Made with industrial-
strength material, these labels are made to perform well in tough conditions.
With their stick-and-peel backing, installation and removal is easy and hassle-
free. Typically, vinyl labels are easy to customize by adding unique text and
OSHA-compliant headings, signal words, or symbols.

Stencils have been used for large equipment like forklifts and cranes.Stenciling
requires both the stencil and spray paint. If the equipment spends a great amount
of time outside, consider applying sealant or weatherproofing finish to extend the
life of the paint.

Labels vs Stencils

The downside of stenciling is that, even with preventive coating, paint can fade,
peel, and be otherwise obscured by harsh conditions. Plus, stenciling makes
asset tagging—since scannable codes are required—very difficult. Vinyl labels
are built to perform in the toughest conditions, and high-quality printing ensures
that codes can be read reliably and consistently throughout the label’s life.

Label Benefits

Water, Suitable Outdoor Performs in

chemical, for outdoor lifespan of temperatures
and UV- and indoor 5-7 years from -25° F
resistant environments to 210° F

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 Asset Tagging

To put it simply, asset tags are scannable equipment labels. They function in
the same way, and are usually made with the same vinyl adhesive material as
equipment labels. But there is one important difference: rather than just relying
on the messaging on the label to tell workers where equipment belongs, these
tags use codes that, once scanned, tell team members precisely where it belongs,
when it was last used, etc. Depending on
the inventory-tracking system you use in
conjunction with asset tagging, you should be
able to search checkout history,
which makes tracking down missing assets
easier and quicker.

Asset tagging allows inventory/facility

managers to spend less time acting like
detectives for lost items and more time
focusing on how to make their facilities safer
and more efficient. Using codes instead of the
more manual process of equipment labeling
reduces the chance of human error.

Types of Codes

Barcodes

Barcodes are the time-tested, most

consistently used code for inventory/
asset tracking. Barcodes are a data
representation of products. Scanners
take that data and translate them into
product names/descriptions. Barcodes
are the codes you think of when you think
of inventory management codes: black
and white parallel lines in 1D (2D versions
can include more data. See QR Codes below). Barcodes are a great for smaller
businesses looking for a simple, low overhead solution that requires minimal
training or implementation costs.

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 QR Codes

First made popular in the car industry, the QR code evolved in its use. Have
you ever used your cell phone to scan a coupon or check in for a flight? If your
answer is yes, then you used a QR code to do so. QR codes allow items to be
scanned quickly, and with any smartphone rather than needing a specialized
tool to do so. Using QR codes can make asset tagging less clunky and more
cost-effective since there’s no need for costly scanners or computers to
manage tagging system.

RFID Tags

These small, electronic tags consist of a chip with an

antenna. The data in the tag is transmitted through
the antenna to a receiver, often called an interrogator,
which allows you to track the tag. Because of its
powerful range, RFID tags are perfect for large-scale
warehouses, because you can scan assets without
being in the exact location. Active RFIDs do require
batteries, which can be costly and requires extra
maintenance.

Getting Started

Equipment labeling and asset tagging have wonderful benefits, but like any new
change, getting started can feel daunting. Taking these steps is a painless way
to start the implementation process.

• Figure out which strategy best

suits your facility. We’ve outlined
a lot of options for equipment
labeling/asset tagging, but you
know your facility best. Pick the
method that, given the unique
inner-workings of your facility,
will be the most successful and
cost-effective model for managing
tools/assets and minimizing loss.

Equipment Labeling and Asset Tagging Guide www.creativesafetysupply.com/guides | 1-877-356-6584

 • Determine which tools need to be tagged/labeled. Ask the following questions
about the tools/equipment in your facility: which tools have the greatest value,
both monetarily and for the function of your facility? Which tools run greater risk
of being misplaced or stolen? Of all the company’s instruments, which are most
likely to be used by multiple departments, teams, or other facility locations?

• What information should labels/tags need? Best practices for label and
tag information include item name, where the item should be stored, which
number this item is (1 of 4 jack hammers, for example). Color coding labels/
tags can be a helpful management tool as well.

Labels: Preprinted vs. Printing In-House

Now that you’ve made a decision on which way to go, the next step is to
procure equipment labels/asset tagging. There are advantages to both
ordering preprinted labels and printing labels in-houses; however, for most
implementation projects this large, printing labels in-house is the sound choice.

When you print labels yourself, you get the luxury of flexibility, which is
important when implementing an equipment labeling/asset tagging system into
a facility as unique and specialized as yours. Printing on-demand labels is the
more practical, cost-efficient choice.

Equipment Labeling and Asset Tagging Guide www.creativesafetysupply.com/guides | 1-877-356-6584

 With in-house printing:

 Labels and tags can be printed on an on-demand basis with no

minimum order requirements.

 Labels/tags are printed in real-time with product sensitive data.

 Customize labels/tags with details that make sense to your business.

 Make the amount of labels/tags you need, when you need them.

Industrial Label Printers 


When you’re creating a new labeling system, the most cost-effective way to do that
is to create the labels themselves. Having your own label printer means created
new labels is easy, and having a label printer on hand means you can create visual
systems to improve organization across all departments of your business.

LabelTac® Industrial Label Printers are built to last. Their rugged chassis and
easy- to-use interface allow for quick and easy use. Powered by the intuitive and
robust label-making software LabelSuiteTM, you’ll be able to design your rack
labeling system without any headaches or hassle. This software makes it easy
to add barcodes and QR codes to your tags.

Keeping track of equipment

through labeling and
tagging makes inventory
management easier and
more efficient.

Remember: the key to

efficiency in your facility is
using the right tools for the
right jobs and environments.

Equipment Labeling and Asset Tagging Guide www.creativesafetysupply.com/guides | 1-877-356-6584

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