How to Choose the Right Labelling System for High-Volume Warehousing?
Whether finding an item for urgent order fulfilment or staying on track with the warehouse’s daily tasks, it is non-negotiable for warehouse employees to retrieve and pack items efficiently, no matter how many items, spread over hundreds of square feet, they must sift through. This is why a consistent and effective labelling system in a warehouse is crucial for upholding the optimal performance of the supply chain.
As warehouse labelling plays a central role in operations management, we will, in this blog, explore how businesses can select the right labelling system.
Warehouse Labelling for Inventory Management: Discover the Elements of Labelling Systems
Unique barcodes or SKU codes aid workers in identifying the exact floor, row, shelf, rack, and bin where the item is kept. At the same time, the labels reflect other product details, including batch number, expiry date, dimensions, and colour, amongst different specifications. Such granular details on each item ensure that pickers don’t have to find the proverbial needle in the haystack while following warehouse best practices such as FIFO (First In, First Out), which involves prioritizing the delivery of identical products based on their shelf life.
The first stage of setting up a warehouse labelling system includes designating a zone for a product type. Once the warehouse manager finalizes the zones, they must assign area codes to the storage units in that location. Due to specific areas allocated to a product type, as pickers get used to the storage system, they can intuitively know where a product might be when an order is received, even before they break down the label code that the Warehouse Management Systems suggests.
However, it is worth asking: How do warehouse workers relocate items based on specifications such as weight, volume, colour, and dimensions?
This is where the labelling process becomes critical. When goods are received in the warehouse, the employees look at the product specifications and assign labels to individual items with the help of the Warehouse Management System before placing them in the bin. Key warehouse management hardware assisting labelling includes POS terminals, RFID tags, and barcode printers.
Types of Warehouse Labels for Inventory Control
Here are the different types of warehouse labels which are commonly used:
- Barcodes: This warehouse label is the most affordable choice for warehouses. The label stores product information such as SKU, PSU, or UPC – codes indicating item location, weight, and other basic details. Amongst the warehouse labelling systems, barcoding is not only a reliable method but also the simplest and is used for item-by-item scanning.
- QR Codes: The major technical difference between QR codes and barcodes is that the former is two-dimensional while the latter is one-dimensional. Therefore, apart from the details that barcodes store, QR codes add an extra layer of complexity to the product specifications. QR codes are useful for warehouse inventory requiring pickers to be mindful of handling instructions, links to assembly manuals (relevant for setting up items such as furniture, hardware suites, etc.), and supply chain details (important for pharmaceutical products), along with other product details which are difficult to register in warehouse labelling such as barcode. Compared to barcodes, QR codes can be scanned from a greater distance and are compatible with more scanning devices.
- RFID Tags: While barcodes and QR codes are great for scanning individual items, they have their limitations in bulk scanning which is essential for inventory audits. This is where RFID tags prove to be an ideal warehouse labelling system. Using radio wave frequency, RFID tags enable pickers to scan several items/batches of products at one go, thus speeding up inventory audits. Additionally, when items are received or shipped in bulk, these tags, capable of scanning multiple items, save labour and the cost of precious human hours. Another key difference between RFID tags, and labels such as barcodes and QR codes, is that radio frequency identification does not require a direct line of sight, thus simplifying audits where the item needs to be only scanned in high volume not picked.
While considering implementing RFID technology in the Warehouse Management System, decision-makers should note that these tags are costlier than other labelling methods. Being reusable, these tags are a good investment if the business requires high-volume scanning in the long haul. As a security measure, RFID tags are effective too because they can be password-protected, thus reducing the risk of unauthorized access.
Brainstorming Warehouse Labelling Ideas? Single Type of Warehouse Labelling May Not Suffice
Let’s consider the following scenarios:
- Want a full-proof warehouse labelling system?
When the power source of active RFID tags is spent or the tags malfunction, barcodes and QR codes can be used as backup options.
- Need real-time inventory updates?
RFID is the perfect warehouse labelling system.
- Solely looking for economical labelling systems?
QR codes and barcodes are compatible with most inventory management devices and are cost-effective while RFID tags tend to be relatively more expensive and require specialized scanners. However, RFID tags are more durable and allow long-range performance compared to the other two types of labelling.
- Is quick scanning the requirement?
Then RFID tags are an excellent choice.
These scenarios illustrate that different types of labels fulfil different purposes. Therefore, opting for a hybrid warehouse labelling system is a must for a holistic inventory management system.
Leveraging Warehouse Labelling System for Locating Items
Further, when the items are placed in their respective spaces and an order is received, pickers must understand the code to find the item location. Upon reaching the location, they need to use a barcode scanner or an RFID reader to identify the item.
Key Considerations Before Choosing a Labelling System
The following are some warehouse labelling best practices that businesses should follow to implement an efficient labelling system:
- Consistency: To ensure easy identification, all items in the centralized inventory management system of the business must be labelled in the same format regardless of the category of products and the warehouse they belong to. Hence, business owners must create clear guidelines for warehouse labelling format and the position of the label on a batch/item. Format consistency involves displaying SKU numbers and UPCs on each label along with a standardized code for details such as zone, floor, rack, bin, and location.
- Label Character Clarity: Businesses should select easy-to-read print, font size, and fonts to optimise label reading by avoiding ambiguity between characters. For example, many people may find it difficult to tell the lowercase “L” – “l” – from the number “1”.
- Colour: Choosing bright, bold labels can help employees find the item from afar, sift through the various categories of items, and distinguish text and the background.
- Position and Material of Labels: Placing labels on products, boxes, bins, pallets, and shelves in a strategic manner not only helps employees easily locate items but also quickly scans them, particularly if the label type is a barcode or QR code. Also, poor placement can wear out or damage the labels. Another factor that can improve the visibility of labels is retro-reflective materials.
While effective positioning can help reduce label damage, the durability of the label is also important for ensuring uninterrupted operations. To gauge the sturdiness of the label, it is important to consider how susceptible it is to water damage, amongst other environmental influences.
Why Businesses Need Warehouse Labelling System?
The major benefits of warehouse labelling systems are:
- Easy item recall, ensuring fewer instances of misplaced or lost inventory
- Enhanced visibility of stock levels, preventing stockouts or overstocking
- Increased worker productivity due to faster item identification
- Reduced errors in inventory logging driven by automatic data capture
- Improved worker safety with the help of labels indicating hazardous areas, handling procedures or maximum load capacity of storage units ─ fewer instances of accidents
- Quick inventory audits ensuring effective quality control, better stock trend forecasting, and stock planning
Building an Effective Warehouse Labelling System with Quinta
Running an efficient warehouse labelling system requires top-of-the-line rugged handled RFID scanners, barcode scanners, and industrial-grade barcode printers. These key devices must have robust hardware integrated with a well-performing centralised warehouse management system. However, integrating hardware with the best-suited configurations with the right software can be tasking, especially if the decision-makers are not well-versed in the industry-specific technology. This is where an organisation such as Quinta plays a vital role.
Over several years, we, at Quinta, have been helping business owners across different sectors integrate the best industrial hardware and software for their operations. This extensive experience has informed us about the inner workings of many industries, thus enabling us to be ready to cater to the various needs that most high-volume warehouses may have.
