What are the costs of poor labelling in logistics and the supply chain?

Increased Labour Costs to Correct Errors From Mislabelled Products

When products or pallets are mislabelled it can create gaps in the inventory data, off-putting ordering schedules and increasing labour costs to resolve the issue. It can also side-track the product or pallet until the issue is corrected, causing delivery deadlines to be missed and subsequently impacting the customer.

Issues in Recall Execution – Tracking and Traceability

One of the reasons the impact of a recall can be so significant and at times critical is the time it can take to identify the issue, find the product and fully complete the recall process. By this time, it not only has the potential to damage the brand’s credibility, but also have serious consequences for their customer, costing them their time and potentially also compromising the safety of the end user.

Loss of Business

Following on from the last point and probably one of the most impactful costs of poor labelling is the loss of business. Without the right processes in place and a potential lack of traceability, a business can face a cost greater than the expense of resolving poor labelling issues, and that is the loss of customers and the impact on the brand’s credibility.