In a world dominated by brands like Amazon, Apple, and more, it’s easy to forget the crucial role of small businesses. In addition to driving innovation, creating diverse employment opportunities, and fostering community growth, they have a huge impact on the economy. In fact, 44% of U.S. economic activity is generated by small businesses. Plus, since 1995, they are responsible for nearly two-thirds of all jobs created. But, these collective achievements don’t mean their individual success is guaranteed. Nearly 20% of businesses fail within their first year, and based on recent surveys, inflation and supply chain challenges are at the top of the list of reasons. Although you can’t prevent these challenges from occurring, you can reduce their impact. These labeling solutions for manufacturing can improve efficiencies and decrease process costs.
Efficiency Challenges in Manufacturing
Regardless of company size, manufacturing companies use similar processes. They all receive raw materials, inventory those materials, manufacture them into a finished product, package the finished product, and ship it to the end customer, all while meeting safety and compliance mandates. But, small manufacturers face an additional challenge, doing more with less. Although it’s unusual for any business to have too much staff, it’s especially rare for a small manufacturer. They are often under pressure to handle many different tasks simultaneously. With limited resources and tighter budgets, inefficiencies in any of these processes can have an outsized impact on the bottom line. These are common areas of inefficiency:
- Receiving - miscounting items can lead to inventory discrepancies and failing to inspect or properly document the condition of incoming items can impact the quality of the finished product.
- Inventory - items not accounted for properly or stored in an improper location can lead to stockouts, overstocks and delays in production.
- Packaging - poor packaging processes can lead to extra handling costs, shipping delays and even damaged products.
- Shipping - sending items to the wrong location or sending the wrong items leads to unnecessary return costs and damaged customer satisfaction.
- Safety and Compliance - inadequate labeling of workplace safety hazards can lead to workplace injuries and OSHA fines.
The Role of Strategic Label Management
Labels can play an important role in reducing inefficiencies. They are more than just identifiers, they are crucial elements of an organized, efficient workflow. Labels touch various aspects of a manufacturing operation including shipping and receiving, inventory management, packaging, customer experience, compliance and more. For example,
Consecutive Numbered Labels
Consecutive numbered labels identify, track and categorize inventory and work-in-process providing an effective method of organization.
Inventory Labels
Manufacturing companies inventory many different items. From the components required to manufacture a finished product to the actual finished product, inventory labels aid in tracking these items and help to avoid mix-ups and misplacements.
Quality Control Labels
Ensuring that raw material and finished goods specifications are met significantly reduces the odds of accidentally shipping an inferior product. Quality control labels can’t prevent a mishap in the manufacturing process, but they can prevent accidentally shipping an inferior product when an error does occur.
Safety Labels
Safety labels warn employees about potential hazards, guide proper operation, and clearly track important inspection, calibration and maintenance information. The strategic use of labels can increase efficiencies and reduce overall costs.
Shipping Labels
Shipping labels guide the distribution of a package from your location to the end destination.
Technology and Automation in Labeling
One way to elevate small business manufacturing processes is to integrate labeling technology and automation where possible.
Thermal Printing
Well-suited for industrial applications, thermal printers stand up to the rigors of a manufacturing environment. They produce durable, high-quality labels perfect for barcodes, graphics and text. With fewer moving parts, thermal printers typically require less maintenance and better throughput and productivity.
Label Design Software
Utilizing the printer’s label design software simplifies the printing process, ensuring text and graphics are aligned properly and compliant across all products.
Barcode Systems
For incoming materials, storage in inventory, and shipping finished goods to their end destination, barcode printers and scanners are automation tools that increase operational efficiency and accuracy.
Automated Labeling Systems
Manually packaging pallets, boxes and other products can be difficult and time-consuming. Automated labeling systems can reduce manual processes including filling, wrapping, labeling and palletizing products.
Best Practices for Implementing Label Management
Implementing an effective label management process starts with understanding your current processes and identifying opportunities for improvement.
Categorize Labels
Develop a list of labels used in your operation including their specifications and function. This will help to ensure they are the best suited for their specific function. Plus, there may be opportunities for cost savings through consolidation.
Optimize Space & Organization
Maximizing space efficiency is vital for small businesses, enhances workflow and reduces clutter. Implement a layout that minimizes travel and maximizes item accessibility. In addition, utilize clearly labeled racks, shelving, and bins for organized and accessible storage.
Automate
Despite a higher initial investment, adopting automation can boost efficiency and reduce errors. Depending upon production volumes, conveyor systems and automated packaging lines may be worth further examination. The long-term gains in productivity and accuracy can make it a worthwhile investment.
Implement Efficient Inventory Management
Maintaining accurate inventory levels prevents overstocking and stockouts. Inventory management software provides real-time stock tracking and reorder points for better inventory control.
Training
Training staff on proper labeling procedures and the importance of label management is also crucial to ensure buy-in and consistent implementation. Additionally, manufacturers should regularly review and update their labeling processes to adapt to changing regulations and business needs, ensuring continuous improvement.
Continuously Evaluate and Improve
As your business evolves so will the potential improvement opportunities. Improvement opportunities will come from an ongoing evaluation of your processes.
United Ad Label’s Innovative Solutions
Effective label management is one way to improve operational efficiency in small business manufacturing. United Ad Label's innovative labeling solutions are an effective way for small to medium-sized manufacturers to achieve improved levels of efficiency and productivity. Contact us to learn more.
NOTES
Inflation and price increases - efficiency is essential - When it comes to inflation, survey respondents said increased prices (27%), revenue loss (15%), and higher wages (13%) are the top three impacts.
Supply chain challenges - According to Forbes, you can take practical steps to overcome this issue — or at least make it easier to work with. Here are a few ideas you can try:
Watch your inventory. Know what you need and what you’re running low on — as it’s not as easy right now to get a quick shipment.
Find alternate products. If the product you need is running low, perhaps there’s another option you can try.
Business can become more efficient by automating processes and workflows - barcoding
Small business manufacturers often face common operational inefficiencies, such as inventory mismanagement, workflow disruptions, and compliance issues. Ineffective labeling is a significant contributor to these challenges. Mislabeling can lead to incorrect inventory counts, lost products, and ultimately, delayed production schedules. Additionally, compliance issues can arise when labels do not meet industry standards, leading to potential fines and lost business opportunities.