2016 Top 5 Trends in Enterprise Labeling

Our third annual top 5 trends in enterprise labeling report outlines some of the recent shifts in labeling that impact global supply chains. These trends, which include color printing, the rise of global regulations, the proliferation of customer-specific labeling requirements, emerging deployment platforms, and the evolution of labeling as a functional position in global organizations, are based on feedback from leading global companies and the “2016 enterprise labeling trends survey.”

Loftware Enterprise Labeling Solutions
Loftware Enterprise Labeling Solutions
2016 TOP 5 TRENDS IN ENTERPRISE LABELING OUR THIRD ANNUAL TOP 5 TRENDS IN ENTERPRISE LABELING REPORT OUTLINES SOME OF THE RECENT SHIFTS IN LABELING THAT IMPACT GLOBAL SUPPLY CHAINS. THESE TRENDS, WHICH INCLUDE COLOR PRINTING, THE RISE OF GLOBAL REGULATIONS, THE PROLIFERATION OF CUSTOMER-SPECIFIC LABELING REQUIREMENTS, EMERGING DEPLOYMENT PLATFORMS, AND THE EVOLUTION OF LABELING AS A FUNCTIONAL POSITION IN GLOBAL ORGANIZATIONS, ARE BASED ON FEEDBACK FROM LEADING GLOBAL COMPANIES AND THE “2016 ENTERPRISE LABELING TRENDS SURVEY.” THIS SURVEY POLLED OVER 600-SUPPLY CHAIN, AND IT PROFESSIONALS FROM ORGANIZATIONS ACROSS ALL MAJOR INDUSTRIES IN 32 DIFFERENT COUNTRIES. 2DEMAND FOR COLOR LABELING IS INCREASING The need for color printing is becoming more prevalent across all industries in order to meet evolving regulatory, customer and corporate branding requirements. Today’s global companies are outlining plans to increase the purchasing of enterprise software and color print technology sufficient to meet their color labeling requirements. Support for color printing is gaining in popularity as companies strive to eliminate the need for pre-printed label stock while reducing the occurrence of waste. Companies are embracing color print capabilities to recognize a wide range of benefits. ENABLE REGULATORY COMPLIANCE Labeling continues to play a critical role in meeting industry standards and regulations. To address these evolving requirements, companies must comply with a wide range of specific labeling and formatting requirements, including mandatory color requirements. Many regulations, such as Globally Harmonized System of Classification and Labeling of Chemicals (GHS)–in the chemical and related industries–use color to highlight warnings and critical safety information. To correctly represent these attributes and support compliance, companies must have color label printing capabilities. TRE N D LABELING TRE N D LABELING1 TRE N D LABELING3 TRE N D LABELING4 TRE N D LABELING5 3of respondents believe color label printing will be more important in three years. 35% MEET CUSTOMER BRANDING AND USE REQUIREMENTS Companies today are placing even more importance on the value of their brand. As a result, they are demanding more than ever that labels reflect the colors that are fundamental to the company’s brand. Additionally, in many industries such as medical device and food & beverage, labels that include color are becoming critical in helping to distinguish between sizes of variations of product. ELIMINATE THE NEED FOR PRE-PRINTED LABEL STOCK Supporting color printing not only enables compliance to meet key regulatory mandates and evolving business requirements, it removes the need for pre-printed label stock, helping companies save time and money. When manufacturers rely on pre-printed labels, any type of change or label variation means existing labels must be switched out, resulting in lost time and reduced efficiencies. Additionally, there are significant costs associated with storing pre-printed labels and the waste associated with those labels when changes are made and the existing stock becomes obsolete. Alternatively, with color label printing, changes can be made dynamically to allow printing of the specific labels at the time they are required. Nearly 60% plan to purchase additional color printers in 2016 60% of respondents identified branding as a business driver for color labeling 57% XYZ Inc. 4LABELING IS EVERYONE’S CONCERN As labeling in today’s global supply chain becomes more complex, companies are realizing the vital role it plays in meeting customer and regulatory demands. Labeling, which intersects the supply chain at all levels, is becoming more prominent, involving multiple departments at global organizations and requiring specialized attention. Those departments include IT, Operations, Regulatory, Warehousing, Supply Chain, Manufacturing, Marketing and even Sales to name a few. Companies are recognizing the importance of coordinating labeling. In many cases they are establishing labeling groups or roles to manage labeling. There are three important reasons why companies are beginning to see labeling as a separate function. MORE GROUPS INVOLVED IN LABELING With the number of people and corporate groups involved in labeling growing rapidly, it’s becoming increasingly important to provide labeling solutions that can meet their varied needs. To this end, companies are beginning to centralize labeling and access to key sources of label data to ensure that labeling is able to meet these diverse labeling requirements. Providing a central or designated role to manage labeling offers a better chance of understanding and addressing the superset of labeling needs dictated by different groups. Also, with proper organization and collaboration, labeling can be extended to business partners and suppliers, which reduces the tendency to create redundancy, fosters inefficiencies and increases costs. TRE N D LABELING TRE N D LABELING1 TRE N D LABELING3 TRE N D LABELING4 TRE N D LABELING5 5LABELING IS BEING VIEWED AS A GLOBAL INITIATIVE As businesses extend their reach across the global supply chain, they are looking to standardize their labeling solutions and maintain consistency with their labeling. As a result, a centralized view of labeling is becoming more important. As companies scale, they must consider how to efficiently deploy and maintain labeling solutions in multiple markets and regions. Part of the challenge of maintaining labeling across a global operation is to understand the unique requirements in each market or region. To streamline maintenance and support enterprise-wide labeling changes, businesses today are being proactive in designating labeling professionals to manage this ever increasing and mission-critical role in supply chain operations. INCREASING LABELING REGULATIONS & CUSTOMER REQUIREMENTS The importance of labeling today is even more vital as companies are tasked with meeting critical customer and regulatory labeling requirements, while maintaining labeling consistency across multiple markets and regions. Establishing a dedicated labeling role offers oversight to ensure that the business is adhering to both regulatory guidelines in each international region, while meeting unique customer demands throughout the company’s global supply chain. It also ensures that someone is responsible for leading the charge of supporting corporate brand standards and helps to remove the threat of mislabeling. of respondents believe the number of people involved in labeling will increase in the next three years 63% of respondents believe labeling today is more important than it has been 90% believe labeling will be as or more important three years from now 98% 6CUSTOMER-SPECIFIC REQUIREMENTS CONTINUE TO DRIVE LABEL CHANGES With nearly 60% of those polled reporting that their customer specific labeling requirements have increased since last year, it is clear that labeling requirements are more demanding and variable than ever. To meet these demands, organizations must be able to efficiently manage complex, variable data and formatting on their labels and do so quickly. However, to meet these standards labeling needs to be both dynamic and data-driven. Companies are striving to meet customer specific requirements in an efficient and timely manner. MEETING UNIQUE AND VARIABLE LABELING REQUIREMENTS Customers are demanding that their vendors meet a wide range of unique and variable labeling requirements including formats, barcodes, labels, languages and data attributes. In response, vendor companies are implementing integrated, automated labeling solutions so that their customer’s requirements can be met dynamically without forcing the manual oversight that often causes labeling inconsistency and errors across the supply chain. Without the ability to meet customer demands, businesses are faced with fines, customer dissatisfaction and even loss of business. TRE N D LABELING TRE N D LABELING1 TRE N D LABELING3 TRE N D LABELING4 TRE N D LABELING5 7PROVIDING THE FLEXIBILITY TO CREATE AND UPDATE LABELS When it comes to managing the label creation and update process, companies need to enable business users to manage label design. Companies report that they need labeling solutions to provide business users the flexibility to create and update labels to meet evolving requirements in a timely manner to improve customer responsiveness while eliminating dependencies on scarce IT resources. To further aid in the labeling process, they are leveraging What You See Is What You Get (WYSIWYG) design and browser-based capabilities enabling business users to streamline the label design and approval process. ENABLING RAPID LABEL CHANGE AND CUSTOMER RESPONSIVENESS Companies today are faced with complexities and variations in labeling that they didn’t need to deal with in the past. What’s more, responsiveness to these increasing demands has become paramount. Without a labeling approach that enables rapid label change globally, companies are forced to maintain countless permutations of labels, all which must be created and maintained separately. This results in more expense in maintaining labels and a lack of consistency. Configurable business logic allows users to quickly and easily support new customer requirements, enabling label formatting and content to be changed dynamically. of respondents find customer specific labeling requirements to be very or extremely important 80% indicate that inability to meet customer specific labeling requirements limits new business opportunities 60% believe customer labeling requirements will be as or more important three years from now 98% 8DATA-DRIVEN LABELING IS IMPERATIVE TO COMPLY WITH GLOBAL REGULATIONS Regulations and the speed at which they change are continuing to have a significant impact on businesses today. With new standards and regulations dictating requirements across a wide range of industries, labeling has become a critical function for meeting compliance. However, constant change is necessary to comply with evolving requirements. Therefore, labeling must be both dynamic and data-driven for companies to quickly respond and avoid fines, supply chain disruptions and even loss of business. Evolving regulations continue to impact business. REGULATIONS CONTINUE TO EXPAND RAPIDLY The effect of regulations and emerging standards continue to impact businesses globally. There are a vast array of evolving regulations, which span across a wide range of industries such as chemical, food and beverage, medical device, and pharmaceutical and electronics. Some of the leading regulations and standards that are shaping the future of labeling in today’s global supply chain include GS1, Globally Harmonized System of Classification and Labeling of Chemicals (GHS), Drug Supply Chain Security Act (DSCSA), Restriction of Hazardous Substances directive (RoHS), EU1169, Food Safety Modernization Act (FSMA) and Unique Device Identification (UDI). TRE N D LABELING TRE N D LABELING1 TRE N D LABELING3 TRE N D LABELING4 TRE N D LABELING5 9of respondents believe regulatory labeling requirements will be more important three years from now 99% REGULATIONS REQUIRE CONSTANT CHANGE As regulatory requirements increase, companies must find efficient ways to showcase unique data attributes and formatting standards including character level formatting, pictograms and other regulatory content. Additionally, data elements must appear in specific locations, and new standards dictate which languages need to be applied to labels, based on where goods are traveling though the supply chain. Connecting labeling with enterprise applications allows companies to standardize mission-critical labeling, while maximizing existing investments to easily manage regulatory variations. Integration to sources of truth for label data ensures consistency and accuracy to quickly respond to evolving regulatory standards. This ultimately assists companies in achieving compliance in order to avoid fines, supply chain disruptions and ultimately loss of business. REGIONAL IMPLICATIONS OF GLOBAL REGULATIONS Many regions across the globe maintain or are developing their own specific set of standards. These distinct requirements further complicate the regulatory landscape and must be met if companies want to do business in a specific market. For instance, the GHS is a set of international regulations, established by the United Nations, for handling chemicals. However, in the US, Occupational Safety & Health Administration (OSHA) has outlined the Hazard Communication Standard (HCS) to meet these regulations, and in EU there is Classification of Labeling & Packaging (CLP) to address GHS. Without the capability to address specific requirements of each region, companies stand the risk of non-compliance and ultimately may disrupt their existing supply chain and limit their ability to scale their business into new markets. believe that inability to meet regulatory requirements will result in penalties and fines 45% believe that inability to meet regulatory requirements will result in loss of business 41% CLOSED 10 EMERGING DEPLOYMENT PLATFORMS IMPACT LABELING Cloud and other emerging technology platforms continue to revolutionize the way companies conduct business and execute business processes. As companies continue to think differently about how applications will be delivered, they are at the same time beginning to think differently about how labeling is incorporated with their business and deployment models. CENTRALIZING GLOBAL LABELING EFFORTS Businesses are centralizing labeling to improve consistency across their supply chain. Using a centralized deployment platform offers great flexibility, providing complete control over how capabilities are deployed over a global landscape. Leveraging a modern, multi-tier labeling solution also provides scalability and flexibility for creating and updating labels. Centralizing also ensures that labels adhere to corporate standards. It also gives organizations more flexibility to support business continuity so they are able to shift label production from one site to another rapidly, while levergaing the data in order to keep the supply chain flowing. TRE N D LABELING TRE N D LABELING1 TRE N D LABELING3 TRE N D LABELING4 TRE N D LABELING5 11 EMERGING HYBRID DEPLOYMENT MODELS Companies seeking global deployment for labeling are utilizing browser-based applications, which can dramatically reduce the burden of installing and maintaining labeling systems at individual locations. In addition to allowing companies to provide access while maintaining central control, new models designed to support high availability and failover are being adopted by enterprise labeling solution providers. These models enable central control over administration and key elements like label templates to ensure consistency while allowing for autonomous operations at a location or plant level. At the same time the approach offers flexibility to support centralized deployments that are configured to failover to local instances to ensure uninterrupted labeling at the location or plant level. TECHNOLOGY’S IMPACT ON LABELING DEPLOYMENT Technology continues to revolutionize the way companies conduct business and execute business processes. Cloud- based computing offers endless possibilities for outsourcing applications and computing infrastructure. Some companies are looking to integrate labeling with existing cloud-based systems or are looking for solutions that can be part of the adoption of this deployment model. The cloud model provides flexibility to scale, eliminates the need for extensive disaster recovery plans and provides automatic software updates. Cloud and browser-based applications dramatically reduce the burden of installing and maintaining labeling systems. They allow companies to enable users with secure and instant access to functionality and label status while streamlining management of global operations. of enterprise applications being deployed in the next three years will be deployed in the Cloud 63% of respondents prefer their barcode labeling software to be deployed centrally 52% Nearly half of respondents are standardizing on a single barcode labeling software solution 50% Loftware, Inc. (www.loftware.com) is the global market leader in Enterprise Labeling Solutions with more than 5,000 customers in over 100 countries. Offering the industry’s most comprehensive labeling solution, Loftware’s enterprise software integrates SAP®, Oracle® and other enterprise applications to produce mission-critical barcode labels, documents, and RFID Smart tags across the supply chain. Loftware’s design, native print, and built-in business rules functionality drives topline revenue, increases customer satisfaction, and maximizes supply chain efficiency for customers. With over 25 years of industry leadership, Loftware’s Enterprise Labeling Solutions and best practices enable leading companies to meet their customer-specif- ic and regulatory requirements with unprecedented speed and agility. PORTSMOUTH, NH, US • GERMANY • UK • SINGAPORE WWW.LOFTWARE.COM
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