I have long believed that labeling rules and guidelines of manufacturers, retailers and consumer goods should encourage -- not discourage -- automation. Now, there is a potentially worrisome trend developing in labeling standards today that could affect automation, productivity and general sanity in warehouses and distribution centers.
My friend Dan Gilmore over at Supply Chain Digest is taking hold of the issue and trying to get manufacturers, retailers and suppliers involved. His "First Thoughts" column frames the issue perfectly and brings up the details of the controversy: http://www.scdigest.com/assets/FirstThoughts/09-06-04.php?cid=2502&ctype=content
This is pretty serious stuff, since several large retailers are already moving away from standard labeling procedures. What could the results be? Consider being required to carry multiple SKUs, developing special handling processes, and (gasp) not being able to adequately track cartons at various points in the supply chain. And when it comes to automation, tampering with the labeling impacts companies’ abilities to automate their distribution centers and establish efficient picking systems. In turn, this affects operations costs, customer service, and the company’s bottom line.
Wow, this would be a step back in my opinion – A step that the world’s supply chains can ill afford in this time of economic recovery. Manufacturers, retailers, vendors and consultants should come together to ensure that these labeling changes and requirements do not present a barrier to existing and new technologies.
What do you think? This could get very interesting!
Jim