Often geofencing is presented quite simply like this:
"Receive alerts when an asset leaves an area."
This definition isn't incorrect, but it doesn't convey all that much about the complexity of the technology itself.
When using geofencing as part of enterprise asset tracking systems, the process involves not only defining boundaries on the map but also managing movement events, taking automated actions, boosting security, and minimizing any possible blind spots in the process.
Then, how does geofencing really work?
What Is Geofencing?
A geofence represents a virtual boundary set up for some location in reality.
Depending on your use case, this area can be:
- Warehouse
- Construction site
- Distribution center
- Office park
- Delivery territory
- Prohibited area
Each time the asset either enters or leaves this predefined area, an event can take place.
Example:
Alert: Equipment was taken out of the construction site after work time
Notification: Package was delivered to the right destination
Automate: Asset status update
Security: Report about unauthorized movement
However, the virtual boundary needs to be identified first.
Step 1: Collecting Location Data
Geofencing requires collecting data regarding asset location.
Sources may vary depending on your particular use case.
GPS
Popular outdoors.
The devices with GPS technology provide latitude and longitude data, usually at periodic intervals.
Appropriate for:
- Vehicle tracking
- Construction machines
- Cargo containers
- Outdoor property
Constraints:
Lower accuracy indoors
Battery usage
BLE (Bluetooth Low Energy)
Utilized indoors.
BLE beacons determine relative distance instead of actual GPS locations.
Applicable to:
- Warehouses
- Hospitals
- Manufacturing plants
RFID
Unlike GPS, RFID does not track locations constantly but identifies when items cross certain checkpoints.
Applicable to:
- Inventory movement
- Entrance/exit tracking
- Wi-Fi or RTLS
Most companies employ RTLS for indoor positioning purposes.
These devices use several signals to calculate an estimated location.
Each environment has unique needs in terms of tracking technology.
Which is the reason why GPS is seldom utilized as a sole tracker for enterprise assets.
Step 2: Comparing the Position to Geofences
After receiving location data, the software will check if:
Is that asset inside the pre-set zone?
Essentially, the process entails:
Comparing the coordinates of the asset in question
To stored geofence coordinates
If the position moves across the border:
Event triggered
Such events will log:
- Date/time
- Location
- Identification of the item
- Moving direction (entrance/exit)
The result will become part of the asset's motion history.
Step 3: Automated Actions Initiated by Geofences
The main advantage of geofencing lies in automation, not detection.
Examples of actions performed:
Security Monitoring
In case the expensive equipment moves out of the building:
→ Alerts sent instantly
Inventory Management
Upon the arrival of shipments into warehouses:
→ Update status automatically
Workflows for Maintenance
In case assets enter maintenance areas:
→ Activate inspection tasks
Compliance
Some business sectors need proof of asset location and timing information. Geofences allow to generate audit logs. Without automation, geofencing will remain just another notifications solution. Automation transforms it into a workflow generator.
Why Geofencing Is Important Besides Anti-theft Purposes
People tend to associate geofencing with theft prevention alone.
However, a large number of companies employ it to find answers to operational questions:
Why do our assets spend much time at some locations?
Which routes are responsible for delays?
How often are our assets moving between different locations?
Where is our inefficiency?
Motion information becomes operational insights.
The Future: Geofencing + Predictive Analytics
The combination of geofencing with lifecycle intelligence is becoming commonplace in modern asset tracking solutions.
Whereas traditional systems focused on answering such question as:
“Where is my asset right now?”
New platforms enable you to analyze your motion data:
"What is the meaning of this particular pattern of movement?"
This turns geofencing into a business analysis solution.
Solutions like AssetTrackPro offer you the possibility to integrate geofencing and overall asset visualization capabilities.
Because, within corporate environments, it is important not only to know where an asset is but also to understand why.
