Value Adding Roles- Labeling

How labeling adds value in distribution centre management?

Nowadays, labeling is common in distribution centre management as it can process both inbound and outbound orders. Labeling provides clear information about the particular product. It also identifies the product for administration work and logistical functions such as storing and order picking. Furthermore, it also provides additional information like customer and manufacturer information in a readable form.

Elaborated explaination:

Labeling provides information of the product during transportation, handling and storing. Such information includes the quantity of goods, customer and destination information. Other than that, labeling can be a medium of communication for manufacturer such as advertizing, pricing and usage guidance. Usually, this information is stored using either bar-coding or radio frequency identification (RFID). RFID is an automatic identification method and is a new trend of storing data used by many companies. Below is an example how a barcode look like.

To add on, labeling can also act as a warning when handling the goods that are hazardous with care. This is because these materials are radioactive and can be dangerous to humans. This is seen in the picture above. Moreover, the label must also be securely bonded with the particular goods and withstand the storage conditions. Labeling usually ties with packaging. This is because labels are either stick or printed on packages of the product.

Labeling also allows the use of electronic data interchange (EDI). EDI enables the movement of data between distribution channels. EDI is able to reduce errors such as shipping and billing errors as it eliminates the need to re-enter the documents upon arrival. This will enhance customer service.

Labeling Example

A pallet filled with carton boxes, which is ready to be transported to customer, is labeled with a RFID tag. Upon checking out (marshaling), it passes through a RFID reader and is scanned immediately. This information containing the quantity of goods and customers’ information is stored in the company’s record for future reference. The shipped goods can be traced and acknowledged once the goods are received by the customers.

2-3 Usefulness of this topic to the Distribution Centre

• Provide real time tracking of goods within the DC or outside for customers. E.g. RFID tracking
• Private branding can be carried out after customer committment is received. E.g Cans are unlabelled initially, refer to the above diagram.
• Labelling can inform warehouse personnel of the nature of products. E.g. Chemical with hazordous symbol indicates careful handling.

2-3 Constraints of this topic to the Distribution Centre

• Private branding of products require the technical expertise and necessary equipments to accomplish.
• The Singapore Food Regulations require all prepacked food products for sale in Singapore to be labelled according to the requirements specified.