March/April 2003

Welcome to the second part of our new series on how to tackle the practical challenges of e-fulfilment. Month by month we'll be looking at subjects like packaging, labelling, barcoding, putting away and picking, handling, loading and delivering: teasing out the latest developments and probing the real issues. Whether or not you're already an expert on these things, we hope you'll learn something new here to help you streamline your business

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Package labelling and printing has become a science, says Marcia MacLeod - and with good reason. It can be fundamental to delivery efficiency. She explores the attractions of 2D, transparent, multi-part and intelligent labels for tomorrow's supply chains

Need to prepare a package for delivery? Easy: type the address on a PC, print it out on a sheet of labels, affix to package, give to delivery company. And how about a barcode label for warehouse and logistics operations? Follow the same procedures; better still, use the ones supplied by the manufacturer.

But hang on a minute. What environment is the package going to be exposed to? Hot, cold, wet or dry? Conveyor or hand-picked? Minimal handling or lots? For home delivery or retailer's depot? On pallet or in carton? Not so simple after all. In fact, labelling - and label printing - is so specialised that some companies tailor many of their jobs according to their demands.

"You have to decide where the label is being used, how long it has to last, and what product it is being used on," points out Jamie O'Donnell, marketing manager European media products at Intermec. "We do site surveys with many of our customers to tailor a solution - and have an R&D lab to look at requirements and understand customer needs before developing a solution."

There are several types of label - plain address label, barcode, RFID and so on. Barcode labels can be either linear (which have one line of information) or 2D (two-dimensional), in which one line of information is placed on top of another. "There is a move towards 2D, as you can put a lot more data on them," says Jeff Taylor, Intermec's business development manager for transport and logistics.

However, the linear EAN128 code is also taking off. "Interest was slow at first," admits David Martin, electrical design engineer for Graham Labelling, "but we've now seen a rapid take-up. These barcodes have syntax, not just a product identification; they can tell you things like 'best before' date, for example, as well as simply identifying the product."

The quality of the barcode label is important, too, as Jeremy Ware, owner of Premier Solutions, points out. "You need a good contrast between the darkness of the bars and the white of the background," he says. "It needs to be the correct size for the item; and it needs to be fixed in a way that ensures it is readable. It shouldn't be fixed on the exact location where a banding strip will be placed to cover it.

"Many retailers are complaining that suppliers don't use the correct labels or barcodes," he adds, "which makes it impossible to handle the goods in the distribution centre. And if something can't be scanned in, it will be returned."

RFID tags, or "smart" labelling, may ultimately replace barcodes. While some observers, like Ware, see "far more hype and talk than applications", others think it will take off in a big way. "Marks & Spencer has been extremely brave in rolling out smart labelling for food distribution, but I think in three to five years it will be the industry norm," says Mark Stothers, a director of Concept. "RFID tags are re-useable, can be written to more than once, and can be read without line of sight."

Other developments include clear labels, in which the outline of the label is invisible, leaving only the print to be read; round-the-corner labels, in which data is put on two faces of the label to allow it to be read on two sides of a box; and hazardous materials labelling, including labels approved for Chip (Chemical Hazardous Information and Packaging Supply Regulations). And any retailers who think they don't need Chips might need to think again: cosmetics, batteries, toner cartridges and medicines all contain ingredients that fall under Chips.

Multipart labels have found wide acceptance in consumer e-tailing, in particular. Featuring perforations or slits, they can be divided up into address label, invoice or delivery note, returns label and so on. Part can be attached to the parcel, the rest included within; and the consumer can tear off the returns label, for example. Part can be non-adhesive, too, for record purposes.

Whatever the label, it is useless if it has fallen off or is illegible, which is why numerous types of sheet faces (the part of the label that takes the print) and adhesives (to stick the label on the package) have been developed. "Advances in technology have led to the development of sheet faces and adhesives that are resistant to cold, heat, humidity, chemicals, abrasion and so on," explains Intermec's Jamie O'Donnell. "Some labels, say on warehouse racks, need to be easy to read and durable through time and washings, and must not fall off. These would need to combine polyester face sheets with strong adhesive."

Choice of label could also depend on the value of the product: no one's going to spend a lot on a label if the item being labelled is only worth a few pounds.

The type and size of the label, in turn, determines the type of label printer used. The traditional printing methods used in recent years are laser, thermal and thermal transfer. Thermal is ordinary printing using a computerised machine with label rolls and ribbons. Laser printing is the same as ordinary computer laser printing. Laser's disadvantage is that printing is done on a minimum of a four-label sheet, whereas thermal printing allows a single label to be printed when required. Thermal printing is also more flexible, allowing different size and types of label (for instance self-adhesive, tear-off) to be generated.

Thermal transfer technology emerged 30 years ago for point-of-sale receipts, but is now also used for fax technology and label printing. Thermal transfer printing involves transferring a thermal label direct on to the package; it is ideal for printing on to plastic sleeves such as those used on bottles. Its use has been extended, too, as it now can include RFID.

Multiple labelling has grown, too. This involves labelling every part of an item (for instance a laptop computer) as well as the whole item, to allow easy tracing of parts should there be a problem with an individual order or inventory as a whole.

Another interesting development is weight price labelling, in which the product is weighed and the label is printed accordingly. While its most obvious application is food distribution, this type of labelling also has other uses. "Take a picking list," suggests Michael Harris, managing director of Bizerba. "The system can receive a box from the conveyor, scan the label to identify order number, calculate weight of the item that should be picked, and reject it if the actual weight doesn't match the standard. The system could, for example, know how much a CD weighs and then check if a box of 10 CDs matches the correct calculation. If it passes, a label is printed and applied."

Bizerba used the system with Dyson's vacuum cleaners. Too many were returned because parts were missing - and no one knew why. The weigh label system confirmed the correct weight when it left the depot, taking into account its cardboard box, so that if anything went missing Dyson knew the loss occurred in transit or at the dealership.

Most printers are static, being placed on desks or tables or attached to something like warehouse racking. But developments in wireless technology have led to a huge interest in mobile printing. "People are definitely going wireless," Intermec's Jeff Taylor emphasises. "Rugged mobile printers can be mounted on trolleys and taken anywhere, eliminating the need for warehouse staff to go back to a desk every time, or to carry sheets of labels and then have to find the right one for the product." Mobile printers can also be carried on a belt, although some people claim the printing quality isn't always good enough.

Wireless printers work in one of three ways: infra-red, cable or radio frequency. The latter is the most efficient, normally using the 802.11b wireless networking standard to provide warehouse-wide communications. Mike Pitt, vertical marketing manager manufacturing and logistics for Zebra Technologies, explains: "Cable, once the most prevalent way to provide mobile computing, can be dangerous; having a cable around has health and safety implications. Infra-red doesn't always work. But radio frequency allows printers to go anywhere and connect to back office systems."

Connecting to networks has tremendous benefits. Not only does it enable labels to be designed centrally and then delivered to the printer - in any location, any country - but it also allows remote maintenance and control of printers. "You can even email a label from a PC to a printer," suggests Simon peacock, account manager new business development at Intellident. "If you have the right software - such as our Etiquette - you can send the label, including graphics and barcode, anywhere you like." And by linking back to the warehouse or supply chain management system, you know what has been labelled and prepared for delivery at all times.

Central maintenance helps with asset control. "People are interested in proactive or predictive maintenance," says Intermec's Taylor. "The printer can tell the system manager - by email or SMS - if it is running out of labels or ribbons, if the head opens, or if it can't print for some other reason."

Printer speeds are going up, too - to 12 inches per second (an average carrier label is six inches long). Costs are coming down. A label printer can start at just £350, although the top of the range is more like £2,500. But taking a self-adhesive label off a printer and attaching it isn't the only way to handle this part of the distribution chain.

"Labels can be blown out of a package from above, tamped (pressed) on, or wiped on by passing a paddle," explains Nigel Green, a director of Industrial Labelling. But, he adds, "big multiples usually dictate the label design" - which in turn dictates materials used and how it is applied.

Labelling is clearly more complex than many people think, but is worth extra care and effort in execution. Your customer may have no idea what goes into the labelling of his goods, but he certainly will be the first to scream if he receives the wrong order because of incorrect labelling - or no order at all because the label fell off.