While most people rarely give them much thought, labels are central to everyday life. We rely on them, for example, to ensure that items get from A to B quickly and in one piece and to provide us with other vital information, including about potential hazards and allergens.

But inefficient or unreliable labelling operations can cause major problems further down the line. Inadequate labelling can necessitate product recalls – which can be expensive – and fall foul of compliance requirements, which may lead to hefty fines and potentially other legal issues.

This is why integrating ERP systems into your labelling operations can be so important. ERP systems can help streamline processes, ensure data accuracy and maintain compliance. In this blog, we’ll take a closer look at the role of ERP systems in manufacturing and how they can address common challenges regarding labelling.

Understanding Manufacturing ERP Systems

Enterprise Resource Planning (ERP) systems play a key role in the manufacturing sector. Specifically, they integrate essential manufacturing functions into a single, centralised platform – simplifying management, enhancing efficiency and productivity, and generally giving manufacturers greater oversight across their operations.

ERP systems bring together data from different departments – including procurement, inventory, production, finance and sales – into a single platform. This ensures that all relevant stakeholders have access to real-time, accurate information, which helps them make better decisions based on real-life data.

They also facilitate better resource planning by enabling manufacturers to forecast demand more accurately, allocating materials and resources when they’re needed and optimising workflows. This helps to reduce waste, cut lead times and enhance overall operational efficiency.

ERP systems are crucial to supply chain management and quality control. They are used to manage the entire supply chain from procurement of raw materials to delivery of finished goods, and to track inventory levels. They also include modules for quality control and assurance, allowing manufacturers to ensure compliance with relevant industry standards and reduce defects.

Common Challenges in Labelling Operations

Labelling is a multifaceted process, and as a result it can be prone to numerous problems and challenges – which can have serious knock-on effects across the wider business by having a negative impact on efficiency, accuracy, compliance and productivity.

Data management is one such challenge. Inaccurate or incomplete product data – for example, incorrect product codes, descriptions or specifications – can cause labelling errors, which can also lead to compliance issues.

Compliance, of course, is a crucial consideration when it comes to labelling. Firms which fail to uphold industry-specific standards risk being hit with financial penalties as a result of non-compliance, which can be costly financially as well as doing real damage to a business’s reputation.

Label design can also be complex, as there are a number of factors to consider. In particular, labels must accommodate various types of product information across different products, types, sizes and packaging, while ensuring consistent branding and readability as well as abiding by any relevant compliance requirements.

The printing process may also be prone to equipment issues. For instance, printers may malfunction or print quality may simply be inadequate, with unreadable text or barcodes. This can disrupt operations and negatively impact overall productivity, so ensuring your barcode or print and apply partner has solutions equal to the challenge is critical.

Benefits of Integrating ERP Systems with Labelling Operations

Integrating ERP systems with your labelling operations offers a number of important benefits. In today’s business environment, where consumer expectations are growing ever more demanding, this could even be the difference between success and failure, that 1% on the margin that gives you the edge.

As we’ve discussed, different items and industries are the subject of differing compliance requirements, failure to comply with which can be both expensive and damaging to a business’s reputation. ERP systems help to minimise the risk of compliance failures – and product recalls – by ensuring labels contain accurate product information.

By reducing manual labelling processes, ERP software also helps to lower the operational costs that come with labelling. As well as preventing firms from incurring compliance-related fines, ERP solutions also help to minimise waste – which is good for the environment and also enhances efficiency, contributing to overall cost savings.

Importantly, integrating ERP systems with labelling can facilitate faster order processing and more accurate order fulfilment. This helps to ensure that deliveries are made on time, which maintains customer satisfaction and helps to build lasting, long-term loyalty to your brand.

ERP systems are also designed to be scalable, so they expand with businesses as they grow. Integrating ERP software with labelling operations therefore helps firms incorporate new products into their range, updating their labelling processes without disrupting the wider business.

Overall, integrating ERP software with your labelling operations offers a range of advantages to your business. It can provide tangible benefits across numerous areas, including – but not limited to – compliance, cost reduction, efficiency, scalability and customer service.

At Cobalt, we offer a suite of labelling software tools from Loftware, from low-cost, stand-alone systems to full-enterprise and specialist systems. Loftware’s labelling solutions integrate seamlessly with common ERP software tools, including MS Dynamics 365, NetSuite, SAP, IFS, Sage and other business applications. Get in touch with the Cobalt team today to find out more.