5 PROCESS IMPROVEMENTS WITH PRINT AND APPLY LABELING COMPLIANCE, TRACKING, THROUGHPUT, BRANDING AND PRODUCTIVITY A White Paper DELIVERING RELIABLE DATA COLLECTION SOLUTIONS Labeling products is not unique to manufacturing industries. Consumer product Executive Summary manufacturers, retailers, produce growers and distributors, warehousing and shipping Warehousing, logistics, distribution and companies, and food product retailers all have manufacturing today are subject to compliance requirements for creating and applying labels to and regulatory requirements related to labeling their products. Complexity varies greatly, but of their products. These requirements are each company must conform to legal and becoming more common and stricter as industry standards. companies large and small must comply with these standards in a global economy. There are as many reasons to barcode and label Businesses face many challenges when products as there are products. Each business considering how best to approach these varying requirement for labeling brings not only and evolving standards: challenges but opportunities to implement effective solutions. Slow • Labeling can be labor- throughput, inaccurate intensive, slowing barcodes and incorrect throughput of placement are just a few manufacturing and of the problems packaging. associated with manual • Manual label information and preprinted labeling. generation and Print-and-apply placement application are functionality can provide prone to error. solutions to these and • Products to be labeled other problems in cost- can present their own effective ways. This paper will discuss five logistical problems. Where a cardboard business processes high-speed print-and-apply carton can easily be conveyed and labeled, technology can improve. a package of baked goods presents different handling requirements. • Changing labels for varying products 1. Compliance (changeover) is time consuming. Standards are extremely specific toward • Accuracy of barcodes and label content is critical, and the right label must be on the accurate placement of labels. If customers have right product in the right place. to re-label goods — or worse, if the quality of labels is not acceptable — charge backs can • Many standards, whether government impact profitability or even result in lost sales or mandates or customer-driven compliance lost customers. Using a print-and-apply initiatives, are very explicit in the format methodology to perform this function ensures and placement of labels. that placement is consistent, preventing charge Page | 2 backs from customers who cannot accept revision to this standard requires compliance by mislabeled merchandise. chemical manufacturers, importers and distributors effective June 1, 2015. This also A major example is the coincides with the EU timetable required for Globally Harmonized compliance. System (GHS), which specifies labeling Print-and-apply solutions can eliminate requirements for chemical inaccurate GHS and barcode labeling and manufacturers and provide positive placement within customer distributors. Under this and regulatory requirements. This produces standard, every chemical higher levels of customer satisfaction with manufacturer and suppliers. Consistent, high-quality labels can distributor worldwide must label every chemical be produced and applied correctly every time in the same way with the same information in within customer-specified and regulatory the same place. This standard lets shippers and requirements. receivers know what chemicals they are handling. Such knowledge can be critical in the 2. Tracking event of accidental spills or other exposure to chemical products that may present hazards to With print-and-apply, barcodes are always humans or the environment. accurate and readable. The barcode print The GHS is intended to promote human health engine, automated application equipment and and the environment by providing users and software used in these functions are shippers of chemicals with consistent technologically advanced and industrial-quality information on the hazards of certain for reliable, consistent chemicals. This international performance. standard improves identification Correct placement makes of hazards, minimizing potential products easier to track en for exposure and resulting in route within the safer use, handling and manufacturing facility, transportation of chemical through the transportation items. cycle, and at the final But to be successful, this destination. Print-and-apply standard must be applied solutions ensure consistent appropriately, making positioning of all labels, compliance and enforcement meeting regulatory and critical. In the United States, the Occupational customer requirements. Safety & Health Administration (OSHA) has For example, the Produce Traceability Initiative modified the long-standing Hazard (PTI) is an industry-specific schema intended to Communication Standard (HCS) to adopt the track produce items from “field to fork.” When GHS in order to improve international the standard takes effect in late 2015, every awareness of chemical attribute presence. The Page | 3 large container of produce must be labeled with Print-and-apply labeling also helps distributors the same data in the same way in the same settle claim disputes that may arise related to place. such issues as incorrect size and product grade. Failure to comply with the standard can result Food and other processing companies that are in lost sales, and because it concerns produce, not covered by PTI have their own spoilage and lost product. Already, several of requirements. Most consumers would think the largest retailers have mandated that their twice about purchasing meat or poultry at their produce suppliers be PTI-compliant or have grocer if the label was not correctly applied or approved exceptions before they will accept looked suspect in any way. Even worse, if a their products. Of primary concern for this label is missing or appears to be incorrect, of it initiative is consumer safety for fresh produce. buyers cannot identify sell-by dates, that If any item is suspected of contamination or package may be returned to the case where other health concerns, it can be quickly and they picked it up. Labeling correctly, uniformly easily traced from the supplier to all and in the right position is destinations, recalled critical. and recovered if This presents another excellent necessary. opportunity for print-and-apply The PTI standard gives solutions. These labels are also retailers the ability to critical for the supermarket accurately and staff for use in rotating stock, effectively rotate making markdowns for items inventory, ensuring nearing end of life, or for quality and reducing waste and spoilage. For prompt removal of items that are no longer example, a major US citrus cooperative that has sellable. already adopted PTI executed a mock recall. This exercise demonstrated that particular 3. Throughput products could easily and quickly be traced back to their origin, and the final destination Print-and-apply barcode labeling is faster and determined for potential recalls. reduces errors and rework. By automating this Why was this recall a success? The citrus process, uniform barcodes are generated and cooperative implemented a print-and-apply placed correctly on each item. Fewer errors labeling solution as part of its enactment of PTI. result in less downtime in the packaging and This meant that it could create labels as needed distribution processes. Gains in productivity can and amend information when it became be significant; consistency and quality are relevant. Customized labels created on the spot ensured. for each container provides total transparency Print-and-apply improves efficiency, increasing from point of origin to final delivery. throughput in the material handling cycle. When workers are able to use more automated Page | 4 and efficient methods, morale is improved as accuracy while saving labor costs. A single well. operator can now feed the packages through the printing operation, and then on to the next Automated labeling solutions, a variation of step in the process. print-and-apply, reduce or eliminate manual processes of label printing and application. This can reduce complaints of repetitive motion 4. Branding hazards, further reducing downtime and lost time from injuries. Automated labeling creates a more professional appearance. Consistency in placement and Print-and-apply can improve throughput in a quality of labels can improve the image of any couple of ways: business large or small. • Changeovers — By utilizing an integrated Improved accuracy means customers are more print-and-apply solution, a single label satisfied and remain loyal to their suppliers. format is used for numerous labels, simply Reduction in disputes and complaints means by entering different data on the computer less time wasted. that drives the label printer. This results in stocking fewer label forms, and greatly Uniformity of label placement and print quality reduces time spent in changing label forms. and lay-down are important not only to the retailer receiving the products, but especially to • Reduced packaging inventory — Through the use of labels generated by print-and- the end consumer, who wants and expects the apply solutions, customers can reduce or items they purchase to look perfect. When eliminate use of preprinted labels or that’s not the case, a sale can be lost. preprinted packaging materials such as boxes and other preprinted