Post Date: August 11, 2023

Costs of Incorrect Product Identification

box with incorrect product IDIn today’s business context, accurate labeling and marking of packages play a crucial role in logistics and supply chain. Incorrect product identification can result in significant impacts on operational costs and company reputation. Within this article, we examine concrete data highlighting the financial impact of improperly labeled packages on companies. Furthermore, we explore potential solutions to mitigate these consequences.

Direct economic impact:

A thorough analysis of logistic operations would reveal that inadequately identified packages incur significant direct costs. Statistics indicate that typically up to 10% of packages may experience issues with incorrect labeling or marking. This scenario translates into additional expenses related to returns, refunds, and order redeliveries. According to a study commissioned by a reputable consulting firm, companies might face a 15-20% increase in operational costs due to improperly identified packages.

Waste of time and resources:

In addition to the directly associated financial impacts, inefficiency in parcel identification leads to a significant waste of valuable resources and operational time. Specifically, the personnel responsible for shipping management are compelled to allocate a substantial additional amount of time to rectify errors, reprocess incorrect shipments, and address customer disputes. This scenario results not only in an overall reduction in the workforce’s efficiency within the entire company but also in a suboptimal allocation of available human resources.

Loss of customers and reputation:

It’s important to note that improperly identified packages can trigger a chain of events jeopardizing fundamental customer trust. Whether it’s delivery delays, product shipment errors, or even misdirected shipments, the consequences of such complications can translate into customer dissatisfaction. This, in turn, can lead to a significant decline in customer loyalty as well as a potential decrease in sales. An accurate market survey has even revealed that over 60% of consumers would consider avoiding future purchases from a company due to shipping-related issues. This clearly underscores the critical importance of ensuring impeccable order and shipment management to maintain a strong and enduring customer relationship.

Innovative solutions to reduce your financial impact:

X2Jet twin printheadTo counter the financial impact of improperly identified packages, companies can implement advanced coding and marking solutions. Introducing technologies like RFID label or QR code printing can enhance package accuracy and traceability. Additionally, adopting artificial vision systems can detect errors and ensure precise labeling, thereby reducing the risk of incorrect shipments.

Incorrect product identification, costs and consequences:

Accurate parcel identification is essential for proper logistics operations. Data clearly highlights the negative financial impact arising from incorrectly identified packages. This translates into additional operational costs, resource waste, and customer loss. Investing in advanced labeling and marking solutions can significantly enhance efficiency, precision, and customer satisfaction throughout the entire supply chain.

Prevent Incorrect Product Identification in Your Packaging Line! If you need advice or support in choosing the most suitable identification system for your company, contact the experts at AT Information Products at: