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How to Avoid Added Costs Due to Inefficient Labeling

Article Courtesy of Loftware Asia Pacific Pte Ltd (by Joe Longo)

Some manufacturing process costs are simply unavoidable and can't be reduced any further. Beyond these bedrock expenses associated with producing finished goods, everything is on the table for expense-saving. Some of the bills facing manufacturers are highly avoidable and can be eliminated through strategic means. Mastering operational best practices in areas such as labeling can save money up and down the supply chain.

The following are a few potential labeling-related expenses which organizations can eliminate altogether.

Recall Costs Due to Mislabeling

The supply chain expenditures associated with a product recall can add up quickly. Reaching out to distributors and sellers, shipping products back and relabeling or disposing of them represents a large bill, coupled with the expense of lost sales and the potential reputation damage the brand will suffer.

According to BioExpert, more than half of Food and Drug Administration recalls involve the mislabeling of products. These are items that would not be considered dangerous if they possessed accurate labels, meaning that all of the expenses associated with their recall is bound up in the labeling process. More accurate packaging design could have prevented these problems.

BioExpert recommended more accurate and diligent communication between manufacturers and their ingredient suppliers to keep inaccuracies from slipping into labels. Labeling solutions that draw on central data resources can resolve this dilemma. Furthermore, heavily automated central labeling solutions can prevent one of the other major causes of mislabeling: careless handling of goods by employees.



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For more on the advantages of implementing a comprehensive Enterprise Labeling Solution, download their newly release report "Why Labeling Matters."

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