Warehouse Labeling

LABELING IN WAREHOUSE

BEST PRACTICES, BENEFITS, CHALLENGES AND IMPLEMENTATION

A typical warehouse sees thousands of products pass through its inventory on a daily basis. With warehouse labeling, you can always keep up with the location and movement of products and items. Warehouse labeling systems provide more visibility of inventory, warehouse locations, and management equipment.

Labels help organize space logically, making it easier for collectors and packers to locate and identify products and storage locations. In addition, it allows inventory tracking at all stages, leading to simple analyses and easier management.

With a centralized warehouse management system (WMS), you can generate and print various types of warehouse labels for full visibility across all warehouse locations. The integration between different systems ensures a seamless flow of data for real-time updates on stock levels and locations.

What are warehouse labeling and warehouse labeling systems?

Warehouse labeling is the process of labeling and marking products, shelves, containers, pallets, and other storage or handling units within a warehouse. Warehouse labels contain and transmit information that allows for efficient tracking, storage, retrieval and management of assets within the work environment.

There are different types of warehouse labels:

• Barcode labels: Barcode labels are inexpensive and can be scanned with a barcode reader to identify a product or location. When combined with text labeling, barcode labels ensure legibility for both humans and machines.
• RFID tags: Radio Frequency Identification (RFID) tags use small radio transponders to transmit information to a reader even from a distance and without the need for line of sight.
• QR code labels: Similar to barcode labels, QR (Quick Response) codes can hold a lot of information and can be read with a smartphone camera. QR code labels are two-dimensional, while barcode labels are one-dimensional.
• Magnetic labels: Magnetic labels have a magnetized backing, making them easy to apply, remove and reposition on metal surfaces.
• NFC tags: Near-field communication (NFC) tags work in a similar way to RFID tags, but they require closer proximity (usually a few centimeters) to the reader.
• Holographic labels: They are used for high security items. They include a 3D hologram that cannot be duplicated, offering protection against counterfeiting.

Depending on the business model and types of assets, the labels include specific information such as:

Warehouse labels, when combined with a warehouse management system, can help create a cohesive and safe warehouse layout for workers.

What is a warehouse labeling system?

A warehouse labeling system is a combination of hardware (labels, printers, scanners) and software (warehouse management system) needed to implement and operate labels within the warehouse layout. Digital warehouse labeling systems can be seamlessly integrated with WMS or ERP software to automate and improve inventory tracking, space utilization, and picking and packaging processes.

Based on the dependence on manual processes or advanced, automated systems, there are several types of warehouse labeling systems:

• Manual warehouse labeling systems: Labels are usually created from a printer and are applied manually to goods, pallets and storage locations. Manual systems are feasible only in smaller operations that don't handle a significant volume of orders or unique SKUs.
• Automated warehouse labeling systems: Automated systems include industrial warehouse label printers that can print and apply labels without human intervention, or conveyors and robotic systems that move goods together with a label applicator. With warehouse automation systems, these systems can be directly interconnected with a WMS to automatically print labels based on incoming data about goods.
• Digital warehouse labeling systems: RFID and NFC fall into this category, since they use digital technology to store and transmit information. These labels contain printed information and digital data that can be read by scanners. Digital warehouse labeling systems can be integrated with a centralized management system to manage and encode digital labels.
• Integrated warehouse labeling systems: These systems are fully integrated with other warehouse systems, such as the WMS, the ERP or the TMS (Transportation Management System). They can automatically generate labels based on data from these systems, and the scanned data is automatically returned to the system.
• Dynamic warehouse labeling systems: These systems use technology such as electronic shelf labels (ESL), which are digital and wireless display units that can be updated remotely. They are primarily used in applications where product locations change frequently, as they can be updated instantly without physical intervention.

The most suitable labeling system for a private warehouse depends on multiple factors: the distribution of the warehouse, the size, volume and variety of the goods, the existing technological infrastructure and the available budget. Large warehouse operations will benefit from greater automation and integration. However, the large initial investment may not be the best option for smaller warehouse operations that are just starting out.

Advantages of complete and accurate labeling in the warehouse

Accurate labeling is crucial for efficiency, reliability and productivity in warehouse operations. With warehouses moving ever larger volumes of orders, warehouse labels offer an easy way to minimize errors and facilitate product traceability at all points. The benefits of warehouse labeling include:

• Accurate inventory tracking at all warehouse locations According to research from Cushman and Wakefield, warehouse development tends toward units between 50,000 and 200,000 square feet in size. The enormous size of the warehouse layout makes it almost impossible to navigate without a guidance system. A suitable warehouse labeling system allows accurate tracking of the inventory of each item, making it possible to locate the exact location. It helps to reduce misplaced or lost inventory, thus minimizing the possibility of depletion or overstock. Greater visibility of SKUs for warehouse managers, collectors and packers translates into greater productivity and better business intelligence (BI) reporting.
• Higher labor productivity Properly labeled products and storage locations help warehouse workers locate items and identify pickup and storage routes. Compared to manual processes, warehouse labeling systems allow for much more intelligent collection, packaging, and replenishment. If a warehouse uses scanning technology, such as barcode scanners or RFID, workers can simply scan the labels instead of having to manually type or enter information.
• Elimination of errors in input and output processes Datalogic research states that a typical warehouse has an annual inventory error value of $195,000. Warehouse labeling adds an additional layer of protection against errors in inbound and outbound processes. Accurate labeling ensures that the right items are received from suppliers, stored in the right storage locations, picked up for orders, and shipped to the right customers. Additional monitoring significantly reduces the possibility of errors in both input and output processes, leading to greater order accuracy and customer satisfaction.
• Elimination of manual data entry With a comprehensive labeling system and scanning technology, you can automatically enter product information into a WMS, eliminating the need for manual data entry. This speeds up data collection, reduces errors, and ensures a more accurate record.
• Increased security for warehouse staff Proper labeling can contribute to a safer warehouse environment for plant workers. For example, you can use labels to mark danger zones, indicate correct handling procedures for certain goods, or show the maximum load capacity of shelves. Automation and warehouse labeling systems can work together to prevent accidents and improve worker safety.
• Facilitating quality control Labels contribute to the quality control process by allowing the tracking of batches or batches, indicating the production or expiration date, or showing if an item has passed inspection. The written record helps warehouse managers to quickly identify and isolate any quality problems.

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Author.Mr. Jordy Stvaer.

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