The era of manual, error-filled inventory records is over. Businesses today must stay on the cutting edge to give their customers what they want, when they want it, or they risk becoming obsolete.
A strong inventory management system is critical to maintaining operational efficiency, accessing accurate traceability data, and reducing shrinkage. Proper inventory management processes can prevent crippling stock imbalances and market forecasting oversights.
Inventory management software, barcoding systems, and RFID systems are indispensable components of the modern warehouse. Yet there is another, seemingly minor, component that also plays a vital role in inventory management:
The Label.
Types of Labels for Inventory Management Systems
Inventory labels track the arrival and movement of stock throughout a facility. As products arrive, they are labeled with details like product name, storage instructions, shelf life, and SKU number.
Priceless in the event of a product recall, traceability labels provide information about an item’s supplier, as well as batch numbers and lot codes. Traceability labels also pave the way for a smooth audit.
A quick scan of an item’s barcode label can eliminate errors caused by manual data entry. Not only are barcode labels accurate and efficient, but they are also an easy solution for keeping track of stock counts.
Expiration labels are essential when it comes to food, beverage, and health-related items. They typically include storage instructions, along with an expiration date, to reduce spoilage and comply with regulations. Rotation labels similarly reduce spoilage by ensuring that the oldest items are used before newer stock.
How can you reduce shrink and improve traceability with inventory labels?
Shrinkage is typically a result of theft, product damage, product spoilage, or administrative oversight. To some degree, shrinkage is unavoidable, but it can result in costly losses. Inventory labels can help reduce shrinkage and save a company’s bottom line.
Correctly identify inventory numbers
Inventory labels make it fast and easy to count inventory on its way into the warehouse, when it leaves the warehouse, and during audits. Accurate data prevents overstocking, which can unnecessarily tie up cash flow and storage space, as well as stockouts, which can drive customers to bring their business to your competitors. This information can be used to identify products that aren’t selling, as well as products that need replenishment. For multichannel businesses, the importance of accurate inventory tracking multiplies, as the same pool of inventory is pulled from multiple sources.
Improve order fulfillment
Labels help keep your facility organized, efficient, and easy to navigate. Quickly locate an item’s location and track its progress down the pick, pack, and shipment line. As orders are fulfilled, real-time data provides valuable insight into customer behavior and sales trends, assisting with future market forecasting. Labels help identify older products that need to be moved off the shelves before newer products and alert employees to remove expired items from the shelves, preventing customer dissatisfaction, regulatory violations, or even health risks.
Decrease reliance on manpower (and spreadsheets)
Inventory tracking is repetitive, unstimulating, and time consuming. Barcode labels automate inventory-related tasks to make operations faster, all while lowering operating costs and eliminating manual errors made by tired and expensive human agents.
Accountability and compliance
Inventory labels enable traceability throughout the supply chain, ensuring accountability during every step. Should a product recall occur, inventory labels speed up the process of identifying what went wrong and where it occurred in the production line. Labels also maintain compliance with standards and regulations in the food, beverage, pharmaceutical and electronics industries.
Reduce waste
Physical waste is a common result of over-ordering, expired products on the shelves, or inaccurate market forecasting of sales trends. Time is also commonly wasted due to mismanagement and manual processes. No matter what the cause, waste is costly and unnecessary with today’s inventory management capabilities.
In addition to reducing shrinkage, inventory labeling (or lack thereof) can have long-lasting effects on a company’s reputation and relevance.
Which labels are best suited for which environments?
Identifying the best labels for your operations can be tricky. The L-Tron team specializes in inventory labeling – from inventory management software to barcode label printers to the labels themselves.
We understand which label material, size, shape and style is needed for individual applications, based on function, environmental factors and industry regulations. We are proud to partner with industry leaders in inventory labeling, like Zebra and TSC Auto ID, to provide the highest quality products at competitive prices.
Interested in more information on how your business can improve traceability with inventory labels? Check out these resources:
