Global Manufacturers Reportedly Mislabel 10% of Goods
New research by label software company NiceLabel revealed that product mislabelling is more widespread than previously thought. Out of a poll of 300 pharmaceutical, medical, automotive, food and beverage, and retail companies, three-quarters (76%) admitted that they saw mislabelling on more than 10% of their goods. The cost? Approximately £65,000 per year.
Across the UK, the US, and France, product mislabelling can also tank brand reputations, cause shipping delays, and force companies to make very public apologies to consumers and regulators. And as factories speed up their processes, these little mistakes that lead to big consequences are growing more and more common.
The Cost of Mistakes
- 26% of manufacturers admit that 25% of their goods are mislabelling every year
- 61% incur losses amounting to more than £50,000 from mislabelling on average in a year
- 35% of respondents cited “minimising errors that lead to a need to relabel products” as the second biggest labelling challenge manufacturers face
As Ken Moir, NiceLabel VP of Marketing noted: “Mislabelling can often lead to issues with products and that can result in a need to quarantine and re-label product or packaging, which is costly, time-consuming and unsustainable”. As ESG and sustainability KPIs grow ever-more important to corporate executives, manufacturing’s mislabelling crisis will face greater scrutiny. “The key will be systems and tools that allow centralised control of label design”, Moir explained.
To mitigate labelling errors, companies that source from multi-tier suppliers should collaborate with them to provide proper label designs and training. After all, it’s best to fight the beast up front: incorrect labels from partners and suppliers cost companies thousands in time and labour. “The solution is to extend labelling to those suppliers...to eliminate the need for costly and time-consuming re-labelling”, Muir said.
Some may shuffle their feet—it’s not our problem!—but one must remember this: if products are mislabelled, it’s the corporation that pays the costs.