A system for monitoring and tracking location of a tag paired to a tool is disclosed, the system comprising a communication unit to receive flag event data, the flag event data relating to a detected event, the flag event data including at least tag identification data, location data of the tag, detected event type, and time of occurrence of the detected event. The system comprises a storage unit to store data records of tags, the data records comprising a current tag location and data relating to the tool which is paired to the tag, and to store a set of instructions defined for handling flag event data. The system comprises a processing unit to receive flag event data, and to transmit a notification of the flag event data to other connected devices according to the stored set of instructions for handling the flag event data.
