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Set up a tool tagging and tracking system

The main barrier to taking better care of your company's assets is often psychological. When we think of a truly productive day at work, we rarely imagine ourselves typing lists of tools into a database! But setting up a tool tagging system doesn't need to be difficult, and it can save you time, effort and money down the road.

Once you've purchased tool tags, get your tools together in your tool crib or in another organized area. It's a good idea to have a set place for each tool (marked with labels on a shelf, for example) so you can see quickly and easily when a tool has gone missing.
If you're using asset management software, fire it up. Label your tools one at a time, and input as much information as possible into each field, from serial number (if available) to when it was acquired. In case of property loss, the more information, the better.
  If you're recording this information by hand, set up a notebook or logbook for checking out equipment. When giving a user an item, name, item number, time out and time returned are the basics, but you may also want to have another party verify the condition of the item on checkout.
Equipment labels
It's practically impossible to remove the writing from soft aluminum tags.
Once your assets are labeled, your logbook or asset management software is in place, and you think you’re ready to go, that's when the most important part happens: You need to devise an equipment use policy for your organization.
  What items are you managing? How long can items stay out before you hit the panic button? How often will your equipment be audited? (You may not want to share this…) How are you ensuring the condition of items from user to user? What will happen to the last user if an item goes missing? All these questions need to be answered before you can get started.
Communicate, communicate, communicate. Hold a meeting to explain and discuss your asset management policy. Your employees will likely have questions and concerns – after all, you're telling them that you're going to be holding them responsible! Be patient and make sure to put the policy in as neutral terms as you can. Then, be transparent – make sure the company's asset policy is posted prominently, in unambiguous terms.