A modular material tracking system is provided for tracking material stored on and drawn from a reel using a modular system. The modular material tracking system may include a detection element, digital logic components, location receiver, enclosure, analytic components, interface component, sensor module, and plate module. One or more sensors relative to the reel may detect a position indicative of forward or reverse reel rotation. A processor may analyze signals to count rotations of the reel, which is savable in memory. A battery may provide power. The system may also record the time and location associated with rotations. A method for tracking material stored on and drawn from a reel using a modular material tracking system is also provided.