It may sound like a slam-dunk, but producing labels that are both readable and comply with customers' requirements can be something of a trick. Here are some tips.
Susan Lacefield has been working for supply chain publications since 1999. Before joining DC VELOCITY, she was an associate editor for Supply Chain Management Review and wrote for Logistics Management magazine. She holds a master's degree in English.
It all seems so simple. Print a label. Peel it off. Slap it on a box, pallet, or container.
But it turns out that effective labeling isn't quite that easy. For one thing, it's not enough just to crank out labels that are reasonably legible and meet your own operation's needs. Your customers will almost certainly want a say in the matter—in fact, many have rigorous requirements regarding the way their incoming shipments are labeled. Fail to meet these requirements and you risk getting hit with penalties and fees or even having your shipments rejected.
And these customer requirements can range all over the map. Some, for example, require information to be printed within precise tolerances to assure the labels can be read by their automated receiving equipment.
Others have special requirements that are driven by government regulations. For example, Marty Johnson, product manager at Zebra Technologies, which makes bar-code and label printing products, tells of a company that ran up against a rather unusual labeling requirement for a product it planned to ship from Puerto Rico to the mainland United States by ocean. The company came to Zebra for help after learning that federal regulations required it to use a label sturdy enough to withstand salt water for an extended period of time so that if the ship sank, salvage crews could determine what was in the container.
"That was a request that when it came in, we said, 'Huh, we never did anything like this before,'" recalls Johnson.
In addition, some customers have special requirements related to specific industries. Pharmaceutical companies, for example, tend to be sticklers about data accuracy—partly because they themselves are subject to stringent data and drug tracking requirements. If a company is required to track products down to the place of manufacture and expiration date, it's going to expect the same attention to detail from its label suppliers, says Perry Cozzone, CIO of Colorcon, a company that makes coatings for pharmaceutical products like tablets and pills.
So what can you do to ensure your labels are both readable and customer compliant? What follows are some tips.
1. Choose the right material
There are many different types of label material out there, including paper, coated paper, and synthetic material. So how do you determine what's the right one for your application?
The first consideration, says Johnson of Zebra, is how long the label has to last. While some labels are intended only for short-term use, others have to be archived for 10 years or more to meet government regulations, he explains. In those cases, you'll need to select a synthetic label or a paper label that has been coated with chemicals to preserve it. "Otherwise, you're going to be disappointed in what happens," says Johnson.
Next, think about the environmental conditions the label will be subjected to. Exposure to water, dust, or light—whether it's direct sunlight or office light—can cause ink to fade and labels to deteriorate. If fading or deterioration is a concern, paper might not be an appropriate choice.
Also consider what type of surface the label has to adhere to, says Michael Shacket of Corner Office Consulting, which provides middleware as well as labeling and printing-related consulting services to distributors and manufacturers. If the surface is greasy, for example, a Mylar or polyester label might be the best choice, he says.
No matter what type of label material you choose, it pays to use high-quality media, says Johnson. Low-quality or inconsistent material can degrade an image's resolution and may hasten fading.
2. Keep your printer in good working order
Print quality also has a big impact on readability. An important part of keeping that quality up is regular printer maintenance. Printheads, in particular, can deteriorate with use and need to be regularly monitored and maintained. "Over time, some of the heat positions within the printer don't fire or get hot enough, and the bar code ends up missing bars or there are spots that are too light to be read," says Shacket.
Temperature can also affect how the bar code prints, especially if the printer is exposed to the outdoors, such as at a dock door. "If [the printer is] set up in the winter, the bar codes will print out nice, but then in the summer, you may see overprinting," Shacket warns. The printer's heat sensitivity may need to be adjusted to accommodate temperature changes.
Experts agree that it's easier to maintain a printer if the company has chosen the right one for its needs in the first place. But companies don't always do that, according to Shacket. Common mistakes include using a low-end printer designed for office use to print a high volume of labels, and using an expensive high-end, heavy-duty printer to produce a small number of labels. "If you're printing 100 labels a day, you probably don't need a $5,000 printer," he says. To avoid these missteps, he urges companies to gather detailed data on their printing needs—how many labels they're printing per day/week/month, the size of those labels, and the amount of data that's going on label—before choosing a printer.
3. Don't overlook label design
It's also important to give some thought to what information must be included on the label and how that information will be presented. Obviously, you have to make sure that you're meeting your customers' requirements regarding the data they want and the format they want it in. If you don't have a full-time labeling specialist on staff, assign someone to stay in regular contact with customers to stay abreast of any changes.
Templates and label management software can simplify the task of keeping up with changing customer requirements. While it may be tempting to skip this step, creating templates will help you avoid extra work in the long run, says Shacket. For instance, if it becomes necessary to make a change to the labels, you only have to change one template instead of potentially thousands of labels. Similarly, compliance label management software can take a lot of the pain out of tracking multiple customers' requirements.
As for readability, there are several simple things you can do to boost the legibility of your labels. Using colored fonts or highlighting can help draw workers' attention to important information, like the ship date. In the case of bar codes, boosting readability may be as simple as leaving enough white space around the code (the so-called "quiet zone") to ensure that the scanning gun can read it.
When it comes to legibility, large labels with large type are better than small ones. Not only are they easier for humans to read, but they're also friendlier to scanners—it's easier to hit a half-inch bar code with a scanning gun than it is to hit a quarter-inch code, says Shacket. For these reasons, Shacket recommends using the biggest label that your product or packaging can reasonably accommodate. The cost difference between a 4- by 4-inch label and a 4- by 6-inch label is negligible, but it can make a big difference in readability, he says.
Finally, keep in mind that the label is only as good as the data that goes on it. Cozzone of Colorcon warns that data quality and accuracy may suffer if there are too many systems—like multiple enterprise resource planning systems or warehouse management systems—feeding information to the label program.
"A label looks so simple," says Cozzone. "But once you start looking at what content you need, where that content comes from, and how it gets there, it becomes clear that some work and effort are involved in the creation of the label on the back end."
Congestion on U.S. highways is costing the trucking industry big, according to research from the American Transportation Research Institute (ATRI), released today.
The group found that traffic congestion on U.S. highways added $108.8 billion in costs to the trucking industry in 2022, a record high. The information comes from ATRI’s Cost of Congestion study, which is part of the organization’s ongoing highway performance measurement research.
Total hours of congestion fell slightly compared to 2021 due to softening freight market conditions, but the cost of operating a truck increased at a much higher rate, according to the research. As a result, the overall cost of congestion increased by 15% year-over-year—a level equivalent to more than 430,000 commercial truck drivers sitting idle for one work year and an average cost of $7,588 for every registered combination truck.
The analysis also identified metropolitan delays and related impacts, showing that the top 10 most-congested states each experienced added costs of more than $8 billion. That list was led by Texas, at $9.17 billion in added costs; California, at $8.77 billion; and Florida, $8.44 billion. Rounding out the top 10 list were New York, Georgia, New Jersey, Illinois, Pennsylvania, Louisiana, and Tennessee. Combined, the top 10 states account for more than half of the trucking industry’s congestion costs nationwide—52%, according to the research.
The metro areas with the highest congestion costs include New York City, $6.68 billion; Miami, $3.2 billion; and Chicago, $3.14 billion.
ATRI’s analysis also found that the trucking industry wasted more than 6.4 billion gallons of diesel fuel in 2022 due to congestion, resulting in additional fuel costs of $32.1 billion.
ATRI used a combination of data sources, including its truck GPS database and Operational Costs study benchmarks, to calculate the impacts of trucking delays on major U.S. roadways.
There’s a photo from 1971 that John Kent, professor of supply chain management at the University of Arkansas, likes to show. It’s of a shaggy-haired 18-year-old named Glenn Cowan grinning at three-time world table tennis champion Zhuang Zedong, while holding a silk tapestry Zhuang had just given him. Cowan was a member of the U.S. table tennis team who participated in the 1971 World Table Tennis Championships in Nagoya, Japan. Story has it that one morning, he overslept and missed his bus to the tournament and had to hitch a ride with the Chinese national team and met and connected with Zhuang.
Cowan and Zhuang’s interaction led to an invitation for the U.S. team to visit China. At the time, the two countries were just beginning to emerge from a 20-year period of decidedly frosty relations, strict travel bans, and trade restrictions. The highly publicized trip signaled a willingness on both sides to renew relations and launched the term “pingpong diplomacy.”
Kent, who is a senior fellow at the George H. W. Bush Foundation for U.S.-China Relations, believes the photograph is a good reminder that some 50-odd years ago, the economies of the United States and China were not as tightly interwoven as they are today. At the time, the Nixon administration was looking to form closer political and economic ties between the two countries in hopes of reducing chances of future conflict (and to weaken alliances among Communist countries).
The signals coming out of Washington and Beijing are now, of course, much different than they were in the early 1970s. Instead of advocating for better relations, political rhetoric focuses on the need for the U.S. to “decouple” from China. Both Republicans and Democrats have warned that the U.S. economy is too dependent on goods manufactured in China. They see this dependency as a threat to economic strength, American jobs, supply chain resiliency, and national security.
Supply chain professionals, however, know that extricating ourselves from our reliance on Chinese manufacturing is easier said than done. Many pundits push for a “China + 1” strategy, where companies diversify their manufacturing and sourcing options beyond China. But in reality, that “plus one” is often a Chinese company operating in a different country or a non-Chinese manufacturer that is still heavily dependent on material or subcomponents made in China.
This is the problem when supply chain decisions are made on a global scale without input from supply chain professionals. In an article in the Arkansas Democrat-Gazette, Kent argues that, “The discussions on supply chains mainly take place between government officials who typically bring many other competing issues and agendas to the table. Corporate entities—the individuals and companies directly impacted by supply chains—tend to be under-represented in the conversation.”
Kent is a proponent of what he calls “supply chain diplomacy,” where experts from academia and industry from the U.S. and China work collaboratively to create better, more efficient global supply chains. Take, for example, the “Peace Beans” project that Kent is involved with. This project, jointly formed by Zhejiang University and the Bush China Foundation, proposes balancing supply chains by exporting soybeans from Arkansas to tofu producers in China’s Yunnan province, and, in return, importing coffee beans grown in Yunnan to coffee roasters in Arkansas. Kent believes the operation could even use the same transportation equipment.
The benefits of working collaboratively—instead of continuing to build friction in the supply chain through tariffs and adversarial relationships—are numerous, according to Kent and his colleagues. They believe it would be much better if the two major world economies worked together on issues like global inflation, climate change, and artificial intelligence.
And such relations could play a significant role in strengthening world peace, particularly in light of ongoing tensions over Taiwan. Because, as Kent writes, “The 19th-century idea that ‘When goods don’t cross borders, soldiers will’ is as true today as ever. Perhaps more so.”
Hyster-Yale Materials Handling today announced its plans to fulfill the domestic manufacturing requirements of the Build America, Buy America (BABA) Act for certain portions of its lineup of forklift trucks and container handling equipment.
That means the Greenville, North Carolina-based company now plans to expand its existing American manufacturing with a targeted set of high-capacity models, including electric options, that align with the needs of infrastructure projects subject to BABA requirements. The company’s plans include determining the optimal production location in the United States, strategically expanding sourcing agreements to meet local material requirements, and further developing electric power options for high-capacity equipment.
As a part of the 2021 Infrastructure Investment and Jobs Act, the BABA Act aims to increase the use of American-made materials in federally funded infrastructure projects across the U.S., Hyster-Yale says. It was enacted as part of a broader effort to boost domestic manufacturing and economic growth, and mandates that federal dollars allocated to infrastructure – such as roads, bridges, ports and public transit systems – must prioritize materials produced in the USA, including critical items like steel, iron and various construction materials.
Hyster-Yale’s footprint in the U.S. is spread across 10 locations, including three manufacturing facilities.
“Our leadership is fully invested in meeting the needs of businesses that require BABA-compliant material handling solutions,” Tony Salgado, Hyster-Yale’s chief operating officer, said in a release. “We are working to partner with our key domestic suppliers, as well as identifying how best to leverage our own American manufacturing footprint to deliver a competitive solution for our customers and stakeholders. But beyond mere compliance, and in line with the many areas of our business where we are evolving to better support our customers, our commitment remains steadfast. We are dedicated to delivering industry-leading standards in design, durability and performance — qualities that have become synonymous with our brands worldwide and that our customers have come to rely on and expect.”
In a separate move, the U.S. Environmental Protection Agency (EPA) also gave its approval for the state to advance its Heavy-Duty Omnibus Rule, which is crafted to significantly reduce smog-forming nitrogen oxide (NOx) emissions from new heavy-duty, diesel-powered trucks.
Both rules are intended to deliver health benefits to California citizens affected by vehicle pollution, according to the environmental group Earthjustice. If the state gets federal approval for the final steps to become law, the rules mean that cars on the road in California will largely be zero-emissions a generation from now in the 2050s, accounting for the average vehicle lifespan of vehicles with internal combustion engine (ICE) power sold before that 2035 date.
“This might read like checking a bureaucratic box, but EPA’s approval is a critical step forward in protecting our lungs from pollution and our wallets from the expenses of combustion fuels,” Paul Cort, director of Earthjustice’s Right To Zero campaign, said in a release. “The gradual shift in car sales to zero-emissions models will cut smog and household costs while growing California’s clean energy workforce. Cutting truck pollution will help clear our skies of smog. EPA should now approve the remaining authorization requests from California to allow the state to clean its air and protect its residents.”
However, the truck drivers' industry group Owner-Operator Independent Drivers Association (OOIDA) pushed back against the federal decision allowing the Omnibus Low-NOx rule to advance. "The Omnibus Low-NOx waiver for California calls into question the policymaking process under the Biden administration's EPA. Purposefully injecting uncertainty into a $588 billion American industry is bad for our economy and makes no meaningful progress towards purported environmental goals," (OOIDA) President Todd Spencer said in a release. "EPA's credibility outside of radical environmental circles would have been better served by working with regulated industries rather than ramming through last-minute special interest favors. We look forward to working with the Trump administration's EPA in good faith towards achievable environmental outcomes.”
Editor's note:This article was revised on December 18 to add reaction from OOIDA.
A Canadian startup that provides AI-powered logistics solutions has gained $5.5 million in seed funding to support its concept of creating a digital platform for global trade, according to Toronto-based Starboard.
The round was led by Eclipse, with participation from previous backers Garuda Ventures and Everywhere Ventures. The firm says it will use its new backing to expand its engineering team in Toronto and accelerate its AI-driven product development to simplify supply chain complexities.
According to Starboard, the logistics industry is under immense pressure to adapt to the growing complexity of global trade, which has hit recent hurdles such as the strike at U.S. east and gulf coast ports. That situation calls for innovative solutions to streamline operations and reduce costs for operators.
As a potential solution, Starboard offers its flagship product, which it defines as an AI-based transportation management system (TMS) and rate management system that helps mid-sized freight forwarders operate more efficiently and win more business. More broadly, Starboard says it is building the virtual infrastructure for global trade, allowing freight companies to leverage AI and machine learning to optimize operations such as processing shipments in real time, reconciling invoices, and following up on payments.
"This investment is a pivotal step in our mission to unlock the power of AI for our customers," said Sumeet Trehan, Co-Founder and CEO of Starboard. "Global trade has long been plagued by inefficiencies that drive up costs and reduce competitiveness. Our platform is designed to empower SMB freight forwarders—the backbone of more than $20 trillion in global trade and $1 trillion in logistics spend—with the tools they need to thrive in this complex ecosystem."