/wp-content/uploads/2023/02/DCS-Logo-Web-Header-1.png 0 0 Adam Leopard /wp-content/uploads/2023/02/DCS-Logo-Web-Header-1.png Adam Leopard2023-05-08 14:57:502023-05-10 17:53:47Bad Labels: 6 Challenges of Bad Label Grades
The Cost of Bad Labels: Challenges for Companies Across Industries
Label problems can cause significant challenges for companies across various industries. From compliance issues to supply chain disruptions, the cost of bad labels can add up. Label issues impact productivity, customer satisfaction, and brand reputation. In this blog post, we’ll explore the main challenges related to bad labels. And, the benefits of having a reliable label printing partner.
Challenge #1: Compliance
One of the most significant challenges associated with bad labels is compliance. Many industries have strict labeling requirements. Such as the pharmaceutical, healthcare, and food and beverage industries. Failure to follow these regulations can result in fines, penalties, and reputational damage. In some cases, non-compliance can even result in criminal charges.
For example, in the pharmaceutical industry, mislabeling drugs can endanger patient health. In 2020, a pharmaceutical company faced a $225 million for misbranding their product. .
Challenge #2: Supply Chain Disruptions
Label problems can also cause supply chain disruptions. When labels don’t scan, packages can end up in the wrong location or get lost. This leads to delayed deliveries and dissatisfied customers. Often, bad labels can also result in returns. further adding to the cost and complexity of the supply chain.
Challenge #3: Cost
Bad labels can be costly, both direct costs and indirect costs. Direct costs can include the cost of reprinting labels. Another direct cost is extra labor, and shipping delays. Indirect costs can include lost sales, dissatisfied customers, and reputational damage.
A survey conducted by the Data Collection Barcode Committee (DCBC) found that bad labels cost companies an average of $1.2 million per year. This includes costs associated with lost productivity, rework, returns, and shipping delays.
Challenge #4: Productivity
Label issues an also impact productivity, resulting in lost time and resources. When labels don’t scan, manual data entry slows down the whole process.
Challenge #5: Customer Satisfaction
Bad labels can also impact customer satisfaction, leading to lost business. When packages don’t arrive on time or end up in the wrong location, customers may become dissatisfied and seek alternative options.
Challenge #6: Brand Reputation
Finally, labels can impact brand reputation. A poor experience can lead to long-term damage to customer loyalty.
Label problems can have serious consequences for any business, ranging from compliance issues to supply chain disruptions, costs, productivity, customer satisfaction, and brand reputation.
Don’t Go it Alone.
Having a reliable label printing partner can help ensure you meet compliance standards. A reputable printing partner can provide expert knowledge on industry-specific labeling requirements. As well as high-quality label printing processes and materials that meet these requirements.
A label printing partner can help ensure the efficiency through the supply chain. A printing partner can provide high-quality labels that are easy to scan and read.
Additionally a partner can help reduce the cost of bad labels. Printing partners can provide high-quality labels that are less likely to need reprinting. Less reprinting minimizes supply chain disruptions, reducing direct and indirect costs.