Minimising Downtime in 3PL and Supply Chains: The Role of Quality Labels

Third-Party Logistics (3PL) providers are a foundational component of today’s global supply chains, handling fulfilment for various brands and industries. Their responsibilities include receiving, storing, picking, packing, and delivering goods to customers. For growing e-commerce businesses, 3PLs are essential partners, enabling expansion by providing operational support.

To maintain a high level of productivity, these distribution centres (DCs) rely on meticulous organisation, accurate inventory management, and efficient processing, which ultimately impacts revenue and profitability. However, to meet these demands, 3PLs face numerous challenges, from workforce shortages to the need for advanced technology. One often overlooked but crucial tool in this operational ecosystem is the quality label, which directly supports organisation, traceability, and communication within the supply chain.

Jeremie Brocas, BIXOLON Europe, explains that embracing these technologies enables 3PLs and similar logistics organisations, to improve traceability and ensure that their entire supply chains run smoothly.

3PL Market Opportunities and Challenges

The global logistics market was valued at $8.4 trillion in 2021, with projections to surpass $13.7 trillion by 2027. This growth presents significant opportunities for 3PLs, which are increasingly essential to the e-commerce ecosystem and other industries requiring streamlined logistics solutions. According to Extensiv’s 2023 Third-Party Logistics Warehouse Benchmark Report, the top growth opportunities for 3PL companies include acquiring new customers (86%), automating processes (50%), and expanding into e-commerce (46%).

Despite the potential, 3PLs encounter several obstacles. The Extensiv report highlights key challenges such as managing costs (48%), finding and retaining workers (32%), and improving operational efficiency (32%). Additionally, labour shortages, identified in Descartes Systems Group’s report, affect 76% of logistics leaders. With these hurdles, automation and technological tools like barcode scanners and label printers become indispensable for maintaining smooth operations.

Read More: The Importance of Private Labelling in E-Commerce

Enhancing Traceability and Inventory Management

Technology is integral to streamlining operations across all levels of 3PLs, from order fulfilment to inventory tracking. Order Management Systems (OMS), Warehouse Management Systems (WMS), and Transportation Management Systems (TMS) have become the backbone of modern DCs, enabling managers and staff to keep tabs on inventory movement and warehouse performance.

Labelling technology, particularly barcode scanners and label printers, complements these systems by providing a reliable method for tracking goods. Labels with 1D and 2D codes, compatible with various management systems, become the “single source of truth” for inventory, allowing seamless information flow across the supply chain.

The Role of Barcode Scanners and Label Printers

Label printers and barcode scanners are vital for maintaining order within the DC. Stationary desktop printers are typically stationed in high-traffic areas such as receiving docks, where they label pallets for efficient sorting. Mobile printers add flexibility, especially when relabeling bulkier goods that cannot be moved easily. Increasingly, RFID-enabled labels are also used to support real-time inventory management, offering both standard barcode and RFID options to ensure redundancy.

Read More: 5 Important Tips to Consider When Choosing a Barcode Scanner

Providing Warehouse Staff with Effective Tools

While technology is critical, it’s the warehouse staff who handle these tools daily, from barcode scanners to label printers. These frontline workers rely on equipment that is durable and straightforward to operate. This ease of use is crucial in a high-speed environment where downtime can affect order accuracy and productivity.

Considerations include the durability of scanners and printers, the ease of changing printer consumables, and intuitive operation. In a fast-paced environment, even small interruptions or breakdowns can lead to significant slowdowns, affecting the efficiency and satisfaction of both employees and customers.

Quality Labels Drive Productivity and Efficiency

Beyond durability and ease of use, label printers must produce high-quality prints that meet industry standards. The clarity and readability of barcodes are essential to ensure swift scanning and avoid costly disruptions. Poor-quality labels that fade, scratch, or are poorly printed can lead to scanning errors and delays, impacting the throughput of the entire DC.

Adhering to standards like ANSI, where labels are graded on a scale from A (best) to F, can reduce scanning errors and operational slowdowns. An ideal rating of C or higher ensures labels are legible and scannable, minimising downtime and helping 3PLs avoid penalties across the supply chain.

Additionally, linerless label printers that eliminate backing waste offer an eco-friendly and efficient solution, particularly in high-volume DCs where label application is frequent. Mobile versions of these printers allow workers to label large or awkwardly shaped goods without needing to transport them to packing stations.

Read More: Small Warehouse Organisation Ideas To Help Increase Efficiency

Supporting 3PL Growth with Quality Labeling

3PL providers are integral to today’s supply chains, particularly in the e-commerce sector. They enable companies to fulfill customer orders efficiently, but face challenges that demand robust solutions. Technologies like OMS, WMS, TMS, barcode scanners, and label printers support these providers in managing complex logistics tasks.

High-quality label printing is a critical component in this ecosystem, ensuring traceability and operational efficiency. As 3PLs scale up and adopt new technologies, investing in reliable, high-quality label printing will continue to play a central role in driving productivity, minimising downtime, and enabling growth across the supply chain. With demand in the logistics market expected to surge, quality labels will remain a key enabler for 3PL success.