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5 PROCESS IMPROVEMENTS WITH PRINT AND APPLY LABELING COMPLIANCE, TRACKING, THROUGHPUT, BRANDING AND PRODUCTIVITY A White

DELIVERING RELIABLE DATA SOLUTIONS

Labeling products is not unique to industries. Consumer product Executive Summary manufacturers, retailers, produce growers and distributors, warehousing and shipping Warehousing, , and companies, and food product retailers all have manufacturing today are subject to compliance requirements for creating and applying 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 standards. companies large and small must comply with these standards in a global economy. There are as many reasons to and 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 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 business processes high-speed print-and-apply 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

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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

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large 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 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

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and efficient methods, morale is improved as accuracy while saving labor costs. A single well. operator can now feed the packages through the 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 . 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 and other preprinted packaging.

A real-life of the benefits in throughput involves a large meat packing company. This company had multiple people per shift hand-labeling boxes and carrying them to the packing areas for use. This was a labor- intensive operation with plenty of margin for error, combined with significant cost. It also A battery company recently found out how meant some packing lines ran out of labeled print-and-apply functionality can benefit its boxes periodically due to the ebb and flow of . This company had to declare battery the workload. When they did not have labeled rating information on each package of batteries boxes, production was halted on those lines, while maintaining its brand colors and images. waiting for labeled boxes. With print-and-apply, the company used a By adopting print-and-apply functionality for decorative preprinted label with a blank area the labeling, the company was able to improve for the variable information and the barcode in

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a consistent location. With most of the label Ordering an excessive variety of preprinted preprinted, the print-and-apply function label stock adds significant operational cost. generated the battery rating information in the The same ability to alter label information when provided space on the label, leaving the necessary can reduce the number of actual preprinted brand information consistent for all label types needed. In addition, not having to batteries. The result is uniform content on an reload label stock can reduce errors and wasted attractive label placed consistently and labels. Use of the correct label stock can accurately on all products, while also ensuring positively impact compliance issues. regulatory compliance. Accuracy of printed labels improves since labels Branding issues are (or should be) important to can be changed as production needs change, all companies. Many customers expect or even and labels are only printed as needed, not in require their vendors to ship products labeled advance. Changing of label information is quick with specific barcode formats and content, and easy. Software controls for data printed on positioned on per their exact labels improves accuracy and ensures quality specifications. This is often due to automated results of printed labels. This is another case conveyor systems or other material handling where reduced errors results in reduced cost. equipment at their receiving points that have scanners positioned to read the expected labels Another productivity gain is lack of employee downtime. Manual labeling and application is in specific locations. highly repetitive in nature, and over time, can Failure to recognize the barcode label formats result in medical issues from these activities. can cause time delays. Customers do not Lost time and employee morale issues can respond well to these situations and often levy result from repetitive motion injuries, which can penalties in the form of charge backs or even also lead to increased medical costs to the returned goods. Frequent or repeated incidents business. Automated print-and-apply functions can result in loss of business for the offending can reduce or eliminate such injuries, while supplier. Significant reduction of such improving employee satisfaction at the same circumstances can be provided through time. Higher job satisfaction generates more introduction of print-and-apply solutions. productive workers.

In practice there are significant productivity 5. Productivity improvements found through Print-and-apply and automated implementation of a labeling solutions minimize print-and-apply label human intervention. Through process. At one metal the ability to change label fabricating company, content dynamically from a seven employees were computer, changeovers of label hand-labeling metal types are reduced or entirely corner beads used for eliminated. This saves time and improves drywall installations. The labeling process process throughput. became a major bottleneck in the

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manufacturing and delivery processes. Through is much more than printing barcode labels. This adoption of a print-and-apply solution, labor is a complete business solution that generates a time was significantly reduced, allowing a single high-quality printed label and positions it where needed consistently and accurately. The result employee to perform that function. This is reliability, productivity and compliance. resulted in labor savings of 42 person-hours daily. With a labor savings of approximately $250,000/year, the solution has been extremely cost-effective, providing an extremely fast About the White Paper return on the print-and-apply investment with This white paper was prepared by Supply Chain an overall ROI of approximately eight months. Services with support from Zebra Technologies, global leaders in delivering on-demand thermal barcode printing, barcode scanning, and rugged How Do You Get Started? mobility solutions.

About Supply Chain Services Print-and-apply methodology can contribute to business compliance with the Produce Supply Chain Services can assist companies to Traceability Initiative, Globally Harmonized achieve operational excellence with best-in-class System, and other industry and customer barcoding solutions. The result is quick, reliable compliance standards for barcode labeling. integration into your business, with fast return on Benefits can be realized in companies of all your investment (ROI). With thousands of customers sizes, across many industries and activities — nationwide, we understand operations processes including manufacturing, distribution, and can provide effective designs which will deliver warehousing and sales. The five main cost-effective solutions to improve those processes. points in this paper point out key areas where Supply Chain Services provides your business with end-to-end services from assessment and design, print-and-apply technology can add value to through integration, installation, and post- business processes. implementation support.

While almost every business can identify areas Sales and technical consultants provide quality and where print-and-apply functions may benefit consistency for your print-and-apply functions, their particular business, consulting with improving worker uptime and productivity. As your experts in barcode labeling and print-and-apply company needs grow or you expand your use of technology can be the best approach. The print-and-apply to additional areas, your business experience and expertise to help businesses will have the confidence that Supply Chain Services increase their productivity and throughput can meet those needs and address them in a timely while also reducing costs will be required. With and cost-effective manner. the implementation of print-and-apply, labeling productivity and accuracy are greatly improved, About Zebra Technologies and compliance is ensured. Zebra® provides a complete line of Various label application methodologies are solutions, including the widest range of barcode printers and media, label design, custom engineered for each unique product or connectivity tools and wired and wireless package to be labeled in your business. networking products. More than 90 percent of Integration with other business software can be ® Fortune 500 companies rely on Zebra labeling provided as part of system implementation. solutions. Labeling systems are custom-designed to the specific needs of your business. Print-and-apply

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Resources

http://www.producetraceability.org/

http://www.epa.gov/pesticides/international/global harmon.htm

https://www.osha.gov/dsg/hazcom/ghs.html#1.6

http://www.producenews.com/the-produce-news- today-s-headlines/9-news-section/story-cat/10798- is-it-difficult-to-become-pti-compliant http://freshcut.com/index.php/food- safety/entry/pti-progress-retailers-begin- implementation-of-traceability-plan

https://www.zebra.com/us/en/products/printers/pri nt-engines.html

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