If you play a role in sourcing labels and tags within your organisation it can often feel like your team members have conflicting objectives. As a purchasing manager, you may be seeking cost reductions, whilst as a technical or operations manager efficiency may be your number one objective. But who is to say that, with the right labelling partner, you can’t have both?
In this article we’ll explore how you can achieve strategic savings without sacrificing label performance or stifling innovation.
Practical Considerations for Label Cost Cutting
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Label & Tag Substrate Selection
Labelling material prices vary considerably; it’s true that you get what you pay for. That said, if your label or tag is only in-situ for a brief period, a lower quality material may be sufficient.
Equally, if you are using low quality traceability tags that constantly fail, the cost of line stoppages will far outweigh any potential cost savings on the tags.
It’s all about having the most appropriate label for the job. Furthermore, it’s vital to test any material changes thoroughly before rolling out your new label or tag company wide.
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Label Backing Paper Selection
As with the label face material, so the backing paper is an important consideration too. The introduction of new, light weight backing papers has resulted in larger label users making significant savings.
Additionally, since lighter backing papers make lighter labels, there are likely to be valuable environmental savings too.
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Label Size and Design
Could you reduce the size of your label or tag without compromising performance? If you’ve not considered this question before, it’s more than likely that we could find savings. Moreover, small tweaks to label design can often improve productivity too.
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Using Variable Data
Adding variable data elements to your label or tag can help improve efficiency and cut costs. Imagine a QR code that can be used to replace lengthy terms and conditions text and direct consumers to more information. Clearly there may be compliance constraints to consider, though the value of variable data codes is now widely recognised.
Variable data on operational labels and tags can streamline processes too. For example, simply moving from handwritten traceability tags to printed barcode tags can speed up your procedures. Granted, you may need to make some hardware changes, but often long-term cost savings can still be achieved.
Label Supplier Considerations
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Partnership Approach & Co-creation
Working with a label supplier that understands your business is paramount. With the consequent understanding, and a commitment to continuous improvement, both cost and efficiency savings become a regular occurrence.
Going beyond the traditional customer / supplier relationship will build mutual trust. Importantly, welcoming your label supplier into your operation will no doubt spark all sorts of innovative ideas for improvements to work on.
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Label Partner Selection
Not all label suppliers put customers first, and the thought of cutting costs for customers may be an alien concept to your current supplier!
At Piroto, we have built continuous improvement into our culture. For example, we conduct regular self-audits for our customers which allow both parties to spot improvements. We also develop Customer Business Improvement Plans and conduct Green Audits to benefit customers and non-customers alike.
If you’d like one of our expert team to undertake a Business Improvement Plan or Green Audit of your labels, please get in touch.