An asset tag is a unique identifier that is attached to physical assets such as equipment, machinery, or inventory. These tags are typically made of durable materials like aluminum to ensure longevity and withstand harsh environments. Asset tagging involves the process of labeling assets with these tags, allowing for easy identification and tracking throughout their lifecycle. By affixing an asset tag to each item, businesses can effectively manage their inventory, prevent loss or theft, streamline maintenance processes, and improve overall operational efficiency.