July 22, 2024

The Importance of Pallet Barcoding – and 5 Pitfalls to Avoid

A male warehouse worker scanned barcodes on boxes – pallet barcoding

Precision data tracking for delivered goods is not just important; it's a critical necessity in the food & beverage sector.

Any room for error is unacceptable in an industry where product quality and consumer safety are paramount to a company's profitability and reputation.

Manual data tracking is not just inefficient; it's a risk that may result in lost or unsafe products. It’s why many manufacturers understand the importance of pallet barcoding today.

Automation solutions, like industrial barcode scanners, offer the only reliable data tracking methods for preventing these errors and ensuring product traceability throughout Food and Beverage logistics.

Pallet labeling is not just a formality; it's a necessity for food manufacturers. Barcode labeling is vital in product traceability, regulatory compliance, and efficient inventory management.

As food products go through the supply chain, clear and accurate pallet labels provide essential information to handlers, distributors, and retailers.

Some critical considerations for adequate pallet labeling of food products:

Regulatory Requirements

Food labeling is heavily regulated, with strict guidelines from the FDA, USDA, or other regulatory bodies. Pallet labels must include all mandatory information, such as product name, ingredients, allergen statements, nutrition facts, and lot/batch codes. Compliance issues may result in costly recalls and penalties.

Image of soybeans and a barcode at the bottom

Traceability

Traceability is crucial in food and Beverage manufacturing should a food safety issue or recall occur.

Pallet labels should feature GS1-compliant barcodes, lot numbers, and production dates to enable tracking of products through the supply chain.

This data allows for rapid identification and isolation of affected products.

Legibility

Pallet labels must be legible to workers handling the products at every stage.

They must also be made of high-quality materials resistant to tearing, smearing, and environmental factors like moisture and temperature extremes.

The text should be printed in a large, easy-to-read font.

Product Identification

Beyond regulatory data, pallet labels should display product descriptions, SKU numbers, and quantities to assist inventory management and order fulfillment processes.

Using separate labels for human-readable text and barcodes can improve scanning accuracy.

Handling Instructions

For perishable or fragile food items, include any necessary handling instructions on pallet labels.

That may include temperature requirements, stack height limits, "This Side Up" arrows, or icons indicating if items are frozen or require refrigeration.

Branding

While not a regulatory necessity, many food brands incorporate logos, slogans, and branded colors into their pallet labels. That supports brand recognition and consistency throughout the distribution chain.

Sustainability

With growing environmental concerns, eco-friendly label materials derived from recycled or plant-based sources are increasingly important for food manufacturers' sustainability initiatives.

Image of a barcode printer with rolls of paper for the printer next to it.

5 Pitfalls to Avoid in Pallet Barcoding Implementation

Implementing adequate pallet labeling processes requires careful consideration of regulatory standards, product traceability needs, and supply chain efficiencies.

Well-designed labels ensure food products remain identifiable, secure, and compliant every step of the way to the consumer.

Correct pallet labeling in warehouse operations and inventory management is essential in Food and Beverage supply chain management. However, many companies make preventable errors that lead to inefficiencies, wasted time, and mistakes down the supply chain.

Here are some of the most common pallet labeling mistakes and recommendations on how to avoid them.

  1. Unclear, Inaccurate, or Missing Information

One of the biggest problems with pallet labels is that they often need more vital details or contain unclear descriptions. The pallet label should identify the contents, quantity, weight, destination, and special handling instructions. Vague labels like "Assorted Goods" or labels with missing quantity information can lead to confusion and mistakes. Make sure labels accurately and readably describe the pallet contents.

Image of a barcode
  • Poor Label Placement

Where you place the pallet label matters; labels should be visible on at least two sides of the pallet at eye level. That avoids situations where workers can't find the label during put-away or picking processes because it is buried under wrap or facing the wrong direction. Consistent label placement also helps when searching for pallets in storage. Having a company standard for label placement is recommended.

  • Label Damage and Wear

Cheap label materials, improper application, and wear over time can lead to damaged labels that are unscannable or unreadable. Investing in high-quality label materials suitable for warehouse environments can prevent many issues. Periodic audits of label conditions and relabeling worn pallets also help maintain accuracy. Protecting labels with clear tape or laminate can extend lifespan as well.

  • Incorrect Labeling Methods

Applying labels by hand is inefficient and prone to human error. Using automated labeling systems dramatically improves consistency and accuracy. For hand labeling, provide clear protocols and training to reduce mistakes. Well-defined label contents, formats, and barcoding standards across products also help promote accuracy regardless of labeling method.

  • Lack of Unique Identifiers

Unique serial numbers, batch codes, and barcodes should be used on labels whenever possible. This allows for precise pallet identification and simplifies inventory tracking and management compared to general descriptions alone. The unique numbers on the label also provide an additional lookup method if it is damaged or otherwise unreadable.

Conclusion

Food and Beverage manufacturing companies can prevent common pallet labeling issues through training, standardized labeling protocols, durable label materials resistant to damage, and automated systems.

Precise, readable labels with unique identifiers applied consistently improve warehouse efficiency and inventory control. Avoiding these pitfalls allows companies to reduce errors and optimize their supply chain.

Is Your Food and Beverage Company Taking Advantage of Pallet Barcoding Technology?

Liberty Grove can help you implement an effective pallet barcoding system that lets you track your products and be prepared should a recall occur.

Contact Liberty Grove for a complimentary consultation on how the Liberty Grove team can help you maximize your raw materials and track your products throughout the supply chain.

Related reading:

Food Traceability | How Cloud ERP Can Help

Compliance Matters: 8 Ways ERP Can Help Food and Beverage Manufacturers

About the author

Liberty Grove Software is an established Microsoft Partner that focuses on providing customers with sales, service, and support for Microsoft Dynamics 365 Business Central/NAV solutions and training and upgrades.

Over more than 25 years, Liberty Grove has assisted hundreds of customers with businesses ranging from small to mid-sized to Microsoft Partners in implementing, training, customization, and upgrading Microsoft Dynamics ERP solutions.

The organization is one of only a few companies worldwide that Microsoft recognizes as qualified to provide Business Central/NAV Upgrade Service Centers.

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Article written by Liberty Grove Software
Liberty Grove Software grew out of its predecessor company, Studebaker Technology, which in 1996 became one of the first Navision developer/resellers in North America (Navision was the predecessor to Microsoft Dynamics 365 Business Central/NAV). As you can tell from our website, we focus exclusively on Business Central/NAV. Almost all our certifications, third-party add-ons, associates, services, and projects are Business Central/NAV-related. This is intentional because we want to offer only the highest caliber expertise to our clients, and we feel we can achieve this only if we devote ourselves to one ERP product.
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