The pandemic was responsible for major changes in our life. The business world was impacted in ways just as major. There has been increased demand for certain categories, and their stocks have gone up. This includes products like canned foods, medicines, toilet paper, cleaning supplies, masks etc. At the same time, demand for certain other categories like oil and refined products has gone up too. But when we speak of positives, e-commerce has grown massive in stature.
This has also made it challenging to conduct supply chain practices error-free: the more demand, the greater the workload. So to minimize the scope of any errors, there must be stringent measures taken. A supply chain is a big web of many moving pieces that all need to be synchronized for orders to be fulfilled on time. A seemingly minor thing that has a major impact on the supply chain is labelling. Labelling can be a source of many errors that can make life difficult.
Misprinted and mismanaged labels can result in plenty of losses and returned packages from big-box retailers. A figure of around $5 to $165 is estimated, and this figure is significantly higher for medical and food businesses. It can aggregate to hundreds of millions of dollars. Labelling can affect, positively or negatively, each and every stage of a supply chain, from demand planning to the final stages, such as warehousing and shipping. To grow and nurture a smooth flowing supply chain, the labelling must be taken special care of. Let’s look at some ways in which labelling affects the supply chain.
Stocking
Labelling issues can sometimes cause problems for the entire supply chain by throwing off the rhythm and the calculations of put-away time. Companies have to plan by keeping a margin of error. A misprinted label can cause disruptions, but they can be minimized by planning in advance. Getting labelling software is something that companies have started to do to avoid such disruptions from happening. This provides a central console to access all label data and minimize errors.
Recalls
The biggest problems faced by the lack of proper label management are recalls. Misprinted labels are very common, and the most common consequence of them is packages being recalled. Billions of dollars worth of packages were recalled in 2018 alone. That is a scary stat and demands attention. Misprinted labels are the biggest reason for recalls.
Warehouse
Correctly labelled items are key to running a well functioning warehouse. It is the information provided on the labels that helps with the sorting process majorly. Inbound and outbound packages are affected heavily by improper labelling. A good labelling practice can help process all orders faster in a warehouse.
Shipping
Shipping labels need to have accurate information on their labels. Slight misspellings, incorrect descriptions, fields left empty and minor mistakes of the same sorts can really send the package to the wrong addresses. This can result in major losses. On the other hand, proper labelling can help packages reach their destination on time without hassle.
Product Details
The information available on product labels can help them pass regulations when it comes to international shipping. Some countries have rules and regulations about materials and sizes and various other specifications. Proper labelling ensures that all this information is available on the label for legal reasons and will help you skip the time it takes to check things at transit points. Any violations of these legal requirements can result in high fees.
If you are looking for professional help to take care of your labelling operation, it is best to go with a company you can trust. ARK India is one such credible 3PL company that has decades’ worth of proven experience. Our labelling services, amongst many other services in the supply chain management arena, are aimed at helping you make the most of your resources and maximize profits. We really know how to make a successful supply chain with happy people at both ends of it. Contact us today to get a quote!