Your quick guide to pallet labelling made easy

Compliant pallet labelling solutions

Face your pallet labelling demons: your quick guide to pallet labelling made easy

Pallet labels have long been the nemesis of manufacturers. Seemingly complicated and over-technical, many manufacturers struggle to achieve full compliance before shipping their goods. But trust us – pallet labelling is one of those understated processes that it’s well worth mastering.

Get it right and you’ll have pallet labels that scan every time, speeding your product’s time to market, giving you better inventory control and saving your business time and money.

Get it wrong and you risk your stock being rejected, lasting damage to your customer relationships and expensive penalties from retailers.

In this blog we look at the major issues with pallet labelling and how to fix them. We also give you the opportunity to take up a free Matthews pallet labelling audit – that’s surely worth reading on for!

(And as extra “incentive” to get pallet labelling right, check out the latest supply chain changes canvassed when we were a part of the technology panel on the Transport & Logistics day at the 2015 GS1 Supply Chain Week.)

Pallet labelling: what’s the big deal?

GS1 Australia has set the standards for logistics labels, making it easy for manufacturers to ensure they have the best quality labels. It has compiled a pallet label quality checklist to assist suppliers with successful pallet labelling.

But they’re not the only standards you should be concerned with; your logistics labels should also be compliant with your customers – the retailers. Bad pallet labelling practices are an ongoing headache for major supermarket retailers. Many retailers now impose penalties for logistics labels that don’t meet their requirements. So it’s definitely in your interests to know what’s makes a good pallet label, and what makes a bad one.

What makes a good pallet label?

There are three key elements to a fully compliant pallet label: content, size, and application.

1. Content

The label will contain both human-readable text and scannable symbols, namely: supplier details, Serial Shipping Container Code (SSCC), product description, product GTIN, carton quantity on pallet, plus code date information and batch number (if applicable).

When it comes to the label content, you should be able to tick the following checklist:

  • SSCC is unique for each pallet and has not already been issued in the last 12 months
  • Both SSCC and product information barcodes are printed in the GS1-128 symbology
  • Quiet Zones (light margins) are not infringed
  • SSCC barcode magnification is between 48.7% and 92.5%
  • Product information barcode magnification is between 25% and 100%
  • All bar codes are at least 32mm in height
  • Human readable information is located below barcode symbology, is no less than 3mm height, and is clear and legible

2. Size

The size of the label is important, but more flexible than the content. A standard A6 format (105mm X 148mm) is sufficient for most requirements, so long as the width remains constant at 105mm. Larger label sizes are also allowed, and the label can be either portrait or landscape.

3. Application

No matter how perfect the content and size of the label, if it’s not in the right place, a scanner will not be able to read it. GS1 Australia and the grocery and liquor industry recommend:

  •  Two identical labels per pallet, on opposing fork entry sides
  • Vertical position, not crooked, creased or angled greater than 5 degrees
  • 400mm and 800mm from the base of the pallet; no closer than 50mm and no further than 100mm from the right hand vertical edge
  • Label must be placed on the outside of stretch-wrap for full pallets
  • When multiple pallets are stacked and stretch-wrapped on the same footprint, the pallet labels should be applied underneath the stretch-wrap as this will be cut away upon delivery into the distribution centre
  • When multiple pallets are stacked and stretch-wrapped individually, the pallet label should be applied over the stretch-wrap

What makes a bad pallet label?

It goes without saying that a bad pallet label is one that doesn’t tick the boxes outlined above. To be more specific though, the following is a list of the most common pallet label fails according to major retailers.

  1. Label position incorrect
  2. No label in use
  3. Duplicated/mismatch SSCC
  4. Damaged label
  5. Will not scan
  6. Under stretch wrap
  7. Pallet label on one side only
  8. Incorrect product label
  9. Duplicated (SSCC number already used in last 12 months)

Remember, these are things that major retailers measure your labels by – it pays to get it right.

How to achieve 100% perfect pallet labels

That’s all well and good, we hear you say, but how do I achieve this Holy Grail of pallet labelling?

You might not be surprised to hear that it all comes down to the technology you use, and how this is integrated into your production line – which is precisely where Matthews comes in.

Pallet labels can be applied at the point of manufacture or at the point of dispatch. They can be applied automatically using a Label Printer Applicator (LPA), or manually using a Label Printer. (You may find this technology review useful, looking at the benefits of LPAs, how they work, their applications and choosing the right one.)

If you opt for an LPA, this should typically be installed at, or immediately after, the pallet stretch wrap station. It’s common to interlock the LPA with the stretch wrapper, in order to apply an SSCC label on each fork entry side of the pallet. Use an unattended scanner to read each carton barcode, and from that information the LPA will print the appropriate pallet label on each fork entry side.

Better yet, you can integrate your LPA and scanner with a coding management software like Matthews iDSnet on the packaging line to automate the print, apply and verify process for both the GTIN carton and pallet label. This enhances the efficiency and accuracy of the entire process.

Once you have the equipment in place, you need to test, test, test – using both a physical check of the key data attributes and scanning the label to ensure readability.

Multi-coded pallets: New in November 2013

Don’t let it be said that the world of pallet labelling is boring. The past year has seen the introduction of multi-coded pallets (MCP’s) across major retail chains Woolworths, Coles and Metcash. This is where multiple use-by dates/batch codes of a given SKU are consolidated onto a single pallet.

Here’s a quick example: A retailer’s purchase order may request a full-pallet equivalent quantity of an SKU (say 60 cartons) but a supplier can only provide this quantity if they ship multiple batch codes of the same use-by date – say 40 cartons of one batch code and 20 cartons with a different batch code but the same use-by date. Rather than two separate part-pallets, the product can be consolidated to a single pallet of 60 cartons with multiple batch codes.

If you haven’t heard of an MCP, don’t panic. Implementation of MCP’s is not mandatory; it is simply an option for manufacturers where it makes commercial and operational sense, and where retailers are willing to accept their stock in MCP’s. Efficient Consumer Response Australasia (ECRA) recommends conducting a rigorous cost vs. benefit analysis and detailed trading partner discussions before making a decision.

There are some specific rules as to how the MCP must be structured, labeled and communicated. You can read these in full in the Multi-Coded Pallet Guidelines on the ECRA website.

Get a free pallet labelling audit!

If you need help with your pallet labelling, contact Matthews for a free no obligation pallet labelling audit. We’ll help you work out the best solution to ensure your pallet labels are fully compliant and will scan every time. Contact us today!

Download our Pallet Labelling whitepaper.

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Mark Dingley
Mark Dingley is Chairman of the Australian Packaging and Processing Machinery Association (APPMA) and is the CEO at Matthews Australasia. With 25 years of experience in the product identification industry and the wealth of knowledge gained from working closely with industry associations in developing and implementing standards & best practice, Mark is able to assist manufacturers with a range of issues from getting real-time visibility of their production line, improving automation, establishing quality assurance using machine vision to selecting the best fit technology for coding and labelling applications. Mark Dingley's LinkedIn Profile
Mark Dingley

by Mark Dingley

Mark Dingley is Chairman of the Australian Packaging and Processing Machinery Association (APPMA) and is the CEO at Matthews Australasia. With 25 years of experience in the product identification industry and the wealth of knowledge gained from working closely with industry associations in developing and implementing standards & best practice, Mark is able to assist manufacturers with a range of issues from getting real-time visibility of their production line, improving automation, establishing quality assurance using machine vision to selecting the best fit technology for coding and labelling applications. Mark Dingley's LinkedIn Profile

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