GS1 Australia has launched a new assessment service to advise suppliers and manufacturers on the correct way to label pallets
February 1, 2011
GS1 Australia has launched a new assessment service to advise suppliers and manufacturers on the correct way to label pallets.
GS1 Australia Industry Manager – FMCG Andrew Steele says major retailers have identified incorrect pallet labelling as an emerging supply chain headache; and it appears to be getting worse.
“A recent sample audit found that approximately 44 per cent of pallet labels are not meeting industry requirements,” he says.
Retailers require logistics labels with unique Serial Shipping Container Code (SSCC) numbers to be applied to pallets delivered to their distribution centres so they can be scanned on receipt.
“The SSCC is like a licence plate that uniquely identifies each pallet,” Steel explains.
“Without the correct label and SSCC, scanning might fail. Data
will then have
to be keyed in manually and internal labels applied, delaying the unloading of the truck, as well as opening the way for data errors.
“Products end up sitting in the loading bay instead of on the supermarket shelf,” Steele says.
Issues retailers cite include:
•
No label has been applied
•
The label is in the wrong location
•
Information on the label does not match what is on the pallet itself
•
Multiple labels with different SSCC numbers have been applied
•
Logistics label will not scan
•
Stretch-wrap has been applied over the logistics label so it doesn’t scan
Following feedback from three major retailers that this was a growing problem, GS1 Australia conducted an audit over 20 sites in New South Wales.
“We found problems arise as a result of business processes and mostly not with the logistics label itself,” Steele says.
“However, one GS1 Australia Alliance Partner who provides labelling solutions, with over 1,000 installations nationally (carton and pallet on line label application), found only 50 per cent of their clients have regular maintenance servicing included in their installation contracts.
“Unlike consumer unit and carton packaging which goes through a verification process, logistics labels are printed and applied on site, sometimes by third-party logistics providers. If label printers are not regularly serviced or maintained, this will impact on the quality of the labels.
“If the warehouse or logistics staff have not been trained on how to apply logistics labels correctly, it can lead to multiple problems.
“Unless the logistics label is scanned before it leaves the warehouse, the supplier will not know whether the retailer can scan it until it reaches their DC,” Steele says.
GS1 Australia now offers an onsite assessment service for suppliers to assess logistics (pallet) label quality and adherence to Australian industry requirements, to be delivered by the Professional Services team in consultation with GS1 Australia’s Industry Engagement team.
The team aims to ensure labels meet the technical specifications and assess the business process involved.
Team members
record and assess:
•
What type and model printer is being used, including online printer/applicator versus desktop
•
If there is a service log or cleaning and maintenance procedure in place
•
How the labels are applied, whether by hand or automated application
•
That they are applied in the correct location as per industry requirements
•
That any part of the label is scanned before despatch to the customer
The new service
will also provide an ISO grade and scan rate of all labels assessed and assist businesses to improve their processes.
“Having logistics labels that scan every time mean your product’s time to market is optimum,” Steele says.
“If your pallets are scanned on leaving your business your inventory can be automatically updated, giving you better inventory control and in the event of a product withdrawal or recall, you can track and trace your product.”