Best Practices in Labeling for Manufacturing Businesses

November 10, 2021


Product labeling has become more sophisticated due to automated and high-speed production procedures. Best practices for label quality are often as critical as component manufacturing.

Your clients depend on you to "communicate" about the identity and number of components used in the products. And also, how those parts fit into the manufacturing and assembly processes. So, following some standards are necessary.

Let us get to know about the best practices for the manufacturing business.

Labeling Best Practices

To prevent errors and ensure accuracy, a contemporary, robust labeling process must be constructed on the following best practices:

  • It is ideal if labels can be printed and applied on components or containers as close to the job's time and location. It is essential to have label printers located next to the equipment that produces components across your business.
  • Integrate printing logic into your sales order, scheduling, production tracking, and order fulfillment systems to end the possibility of errors caused by production or warehouse staff forgetting to request labels from separate printing software.
  • The ability to design and alter label layouts and information, enabling the team to configure and adapt formats in response to changes in customer, industry, or regulatory needs.
  • By scanning labels using mobile devices connected to the inventory management system, it can assure rapid and precise identification and counting of items.
  • Maintain a master file with customer label requirements for your team's reference under document change control.

As you seek to fulfill client demand and expectations, you cannot afford to misplace valuable inventory or spend time managing and delivering your components.

Your clients rely on you to be a strong and dependable partner in their attempts to optimize their operations, maintain a lean workforce, and increase their bottom line.

Labeling Potential Risks

Whether the problem is the incorrect label at the incorrect time or the correct label at the incorrect time, you have a non-conforming product from your customer's perspective. Your vendor credibility is threatened.

Improper labels might throw EDI Automatic Shipping Notices (ASNs) out of sync with production. Which can disrupt your customer's assembly processes.

Imagine that containers and components are mislabeled. In such instances, locating a product inside your facility can become an actual treasure hunt.

When labels are missing, it is challenging:

  • To maintain first-in/first-out inventory rotation.
  • To prevent shelf-life problems.
  • Single-batch processing.

Reliance on human data input for container amounts might bring the following issues throughout the workplace.

  • typing mistakes,
  • limit cycle counts, and
  • complicate "physical" inventory stocks.

Also, if the manufacturing company ships products overseas or does business in critical weather conditions. In that case, the durability of the labels is required.

Different weather conditions like rains, blizzards, or extreme humidity might tear or wear off the labels. So, standard labels might not do the work in all conditions.

Waterproof labels will be the best solution here. You need to understand the differences between Waterproof vs Water-resistant Labels to make a sound decision on what to pick and what to discard.

Creating a Successful Labeling Process

Consider the amount of process logic necessary to handle color/option sequenced shipment for individual vehicles (ILVS) in the transportation business. That is why manufacturers must see labeling as a critical component of the manufacturing process, from raw materials to finished goods ready for shipment.

The labeling process should be based on the following principles:

  1. Use the data to identify raw materials, components, and produced items as they travel through your operations to consumers.
  2. Labeling with strict control is a valuable tool for collaborating with warehouse management to reduce inventory costs, save time on material management, and increase cash flow.
  3. Timely and precise labeling enables you to classify and contain suspect components and scrap, ensuring constant quality. This capacity will also be helpful if a customer contacts you to examine the traceability of a product.

Advantages of Labeling for Manufacturing Companies

Manufacturing supply networks throughout the globe have been under increased scrutiny after the disruption created by COVID-19. This scrutiny has forced manufacturers to think about their operations to deal with demand and supply disruptions.

Here are the reasons why labeling is considered a competitive advantage.

Enables Rapid and Agile Responses

Has a supply chain interruption necessitated a speedy changeover in production or a rapid onboarding of a new supplier about your labeling processes? Manufacturing businesses can meet such expectations using labeling.

By centralizing and standardizing label operations on a single platform, distant locations can obtain necessary labels through the cloud. Suppliers can view, edit, and print your authorized labels through their browser, using data taken from your record sources.

Ensures Compliance

Do you believe your company's labeling systems lack rigor, putting you in danger of non-compliance? Labeling helps you to maintain strict control over the content of your labels via a centralized platform.

By linking your labeling operations with your business resource planning (ERP) systems or other sources of truth, you end the need to input crucial label data several times. Additionally, you guarantee that if legislation and data inside your sources of truth change, your labels have the most up-to-date information wherever they are utilized.

Improves Efficiency and Protects Profitability

Are you under pressure to reduce manufacturing costs and speed up time to market? Many variables might influence a manufacturer's capacity to sustain production and transport items. Things like incoming products that are not labeled according to your specifications or a client who demands a different branding on a shipping label can be a source of contention.

But manufacturing organizations can overcome these obstacles by using a labeling solution, saving time and money, and increasing productivity. Any necessary adjustments can be made because of the interaction with sources of truth and the managing pre-approved label templates.

Suppliers have access to your authorized label templates and associated data. So, you can be assured that products will arrive ready to be added to inventory without the need for re-labeling.


Profitability in the manufacturing sector is challenging enough without having to cope with several expenses as well. There are certain mistakes you should avoid. Following best practices when developing a label can help businesses avoid litigation and regulatory investigations. Good Luck!


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Carlos Diaz
I believe in making the impossible possible because there’s no fun in giving up. Travel, design, fashion and current trends in the field of industrial construction are topics that I enjoy writing about.

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