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Introduction
When selecting a label supplier, many procurement managers and executives fall into the trap of focusing on unit costs. While a lower price per label might seem the best option, this narrow focus often overlooks the hidden costs associated with traditional procurement models. Adding to this problem is printers are conditioned to sell volume, often leaving PLMs holding the bag of excess inventory that risks obsolescence, damage, or loss); long lead times and inflexible ordering processes further inflate the total cost beyond initial expectations.
Enter LabelDrive a solution that helps private label manufacturers (PLMs) slash costs, streamline procurement, and gain control of their supply chain. With LabelDrive, the focus shifts from unit costs to total cost savings. Here’s why that change in perspective is critical for your business.
The Real Problem: Bulk Buying and Inflexibility
To combat long and inconsistent lead times, PLMs are often forced to bulk buy labels just to secure a better price point or avoid stockouts. This bulk buying may reduce unit costs on paper, but it ties up valuable capital in excess inventory that could become obsolete with a simple design or regulatory change.
In addition, brands are unable to vary their label designs for market testing or enhanced customer engagement (promotions, holidays, events, new sales channels, demographics, recipes, etc.), leaving them stuck with a "one-size-fits-all" approach. Without the ability to quickly produce press samples or adapt labels for different events or promotions, businesses miss out on valuable opportunities to connect with their customers.
If these challenges sound familiar, you’re not alone. Many PLMs face these exact issues, driving up total costs far beyond the initial price of the labels themselves.
The Solution: LabelDrive
LabelDrive is a game-changer that eliminates traditional label procurement constraints, inefficiencies, and hidden costs. It offers PLMs an on-demand label procurement platform with features that provide unprecedented flexibility, transparency, and control while realizing cost savings of up to 60% (see case study at the end of this article).
Here’s what makes LabelDrive stand out:
1. On-Demand: Get 48-hour turnarounds or opt for a consistent weekly (or biweekly, etc.) inventory refresh, giving you just-in-time delivery without bulk buying or carrying excess inventory.
2. No Minimum Order Quantities (MOQs): LabelDrive eliminates the burden of high-cost MOQs, allowing you to order exactly what you need for your current production cycle—nothing more, nothing less.
3. Branded Procurement Platform: With a fully branded label procurement and management platform, you gain full control and visibility over the entire label procurement process, from order to delivery.
The Benefits of Shifting Focus to Total Cost Savings
1. Slash Costs: By using LabelDrive, you can reduce total costs by up to 60%. The savings come from more than just a lower unit cost:
- No excess inventory means less wasted, lost, or damaged stock.
- Reduced stock audits and storage costs free up capital.
- No risk of holding obsolete labels due to regulatory or design changes.
2. Flexible Procurement: Instead of being locked into bulk purchasing to hit price points, you can order only what you need for your current production schedule. This flexibility helps free up cash flow, reduces warehouse space requirements, and allows you to respond quickly to market demands.
3. Targeted Consumer Engagement: With fast 48-hour turnarounds, you can vary label designs for events, seasonal promotions, A/B testing, new sales channels, and more. This agility allows you to customize your labels for specific demographics, social causes, or promotional events, boosting consumer engagement and increasing sales.
4. Streamlined & Automated Procurement: LabelDrive automates and consolidates the entire procurement process, eliminating back-and-forth emails, phone calls, and status checks. This reduces errors and speeds up the flow of information, removing friction from your supply chain.
5. Full Supply Chain Visibility & Control: LabelDrive provides predictable lead times, meaning you can plan your supply chain with confidence. With complete visibility into the production and shipment of your labels, you’ll never be in the dark again. This transparency enables better decision-making, reduces waste, and minimizes the risk of production delays.
6. Consolidated Procurement: By consolidating your label procurement with LabelDrive, you can take advantage of group pricing, lowering costs for all your brands and private label customers. With one centralized supplier, procurement becomes easier to manage, and costs are reduced across the board.
7. Boost Sales & Foster Innovation: LabelDrive supports the growth of startups and smaller brands by providing them with faster, cheaper, and more flexible label options. By eliminating traditional constraints like long lead times and MOQs, PLMs can foster innovation and grow alongside emerging brands.
8. Generate New Revenue Streams: LabelDrive’s branded reseller platform allows you to add a markup to label prices for your customers, creating an entirely new revenue stream for your business. Alternatively, you can pass on the cost savings directly to your customers, strengthening your relationship and building loyalty.
How much does LabelDrive cost?
Implementing LabelDrive is free because it streamlines and automates the procurement process and eliminates errors for all parties involved, providing you with faster service and enabling our team to scale without hiring more customer service reps.
Conclusion: Focus on the Big Picture - Total Cost Savings
Focusing solely on unit costs when choosing a label supplier can lead to hidden expenses and inefficiencies that drive up your total cost of ownership. LabelDrive shifts the focus from the price per label to total cost savings, providing procurement flexibility, reduced inventory waste, and increased supply chain control.
Don’t let the illusion of lower unit costs cloud your judgment. By embracing LabelDrive, you can unlock significant savings, enhance your operations, and set your business up for long-term success.
Want to see how much you can save with LabelDrive? Try our new TOTAL Costs Calculator.
For more information or a demo, please contact Mark Pohlkamp at 513-260-4400 or [email protected] or visit Think Different Print.
Blog resources: https://blog.thinkdifferentprint.com/labeldrive-a-new-ondemand-procurement/labeldrive-a-new-sustainable-flexible-on-demand-procurement-model-for-plms-0
Introduction
The label industry is transforming, especially for private label manufacturers (PLMs), who have long struggled with inefficient procurement processes and excessive inventory management. Outdated models—marked by high minimum order quantities (MOQs), long lead times, and limited procurement flexibility—have stifled innovation and created significant barriers for smaller brands and emerging brands.
After extensive discussions with hundreds of PLMs, we’ve developed LabelDrive—a revolutionary on-demand label procurement solution that offers the procurement flexibility and control PLMs need to innovate, reduce costs, boost sales, and drive sustainable growth. LabelDrive eliminates traditional constraints with features like a 48-hour turnaround, no MOQs, and transparent pricing, empowering PLMs to take control of their procurement process while reducing their environmental footprint.
The Problem
Label converters have become stagnant, imposing constraints that limit PLMs’ ability to reduce costs, waste, and streamline procurement. Traditional procurement models force manufacturers into bulk buying to secure better pricing and mitigate long, inconsistent lead times. Unfortunately, this approach leads to several problems:
1. Excess Material Waste: Bulk orders often result in overproduction. If labels become obsolete due to minor design, ingredient, or regulatory changes, they are discarded, creating unnecessary waste.
2. High Inventory Costs: Storing excess labels ties up capital, occupies warehouse space, and requires additional resources to manage. If inventory miscounts occur, companies may need to place costly emergency orders to prevent production delays.
3. Inflexibility for Smaller Brands: High MOQs and tiered pricing structures prevent small and emerging brands from placing small orders, stifling their ability to iterate quickly and bring new products to market.
These inefficiencies not only hinder growth but also harm the environment through unnecessary material use, increased energy consumption, and elevated carbon emissions due to frequent and excessive shipments.
The Solution: Introducing LabelDrive
LabelDrive is designed to empower PLMs to overcome these challenges by offering on-demand label procurement that minimizes waste, optimizes production efficiency, and reduces environmental impact. Our solution eliminates the need for large bulk orders and high MOQs, enabling PLMs to order precisely what they need when they need it. By consolidating label orders across brands and customers, PLMs can gain more control over their supply chain while reducing costs and environmental harm.
How LabelDrive Saves the Environment
LabelDrive’s on-demand label procurement model not only improves operational efficiency but also champions sustainability. Here’s how:
1. Minimizing Material Waste
With LabelDrive, PLMs can order smaller quantities tailored to current production needs, eliminating excess inventory that would otherwise be discarded. This approach drastically reduces the amount of raw materials used, cutting down on waste that would end up in landfills.
2. Lowering Energy Consumption
Producing only what’s needed reduces the number of production runs, lowering energy usage throughout the supply chain. Furthermore, with less excess inventory to store, manufacturers can decrease the energy required for climate-controlled warehousing and management.
3. Reducing Carbon Emissions
LabelDrive optimizes shipments to match real-time demand, reducing the need for multiple, large-scale deliveries. This streamlined logistics approach results in fewer transportation emissions, minimizing the supply chain's overall carbon footprint.
Benefits of LabelDrive’s On-Demand Flexible Procurement
LabelDrive offers a new way for PLMs to engage in more sustainable and cost-effective procurement practices while boosting innovation and growth:
1. Lower Costs and Greater Flexibility
With no MOQs, PLMs can order only what they need, avoiding excess inventory costs. This flexibility is ideal for small brands experimenting with label designs and testing new products without being burdened by bulk-order constraints.
2. Improved Environmental Sustainability
By aligning label orders with production needs, PLMs can significantly reduce material waste, energy consumption, and carbon emissions, creating a more sustainable supply chain.
3. Enhanced Agility and Market Responsiveness
The ability to procure labels on-demand allows PLMs to react quickly to changes in market demand, ingredient updates, or product rebranding. This agility helps brands maintain a competitive edge and meet consumer expectations.
Real-World Example: LabelDrive in Action
A mid-sized food manufacturer faced challenges with high inventory costs and label obsolescence due to frequent ingredient changes. Their traditional bulk ordering model forced them to discard thousands of outdated labels each year, resulting in significant waste and financial loss.
After switching to LabelDrive’s on-demand procurement, the company now orders labels weekly, perfectly aligned with production cycles. This change resulted in an 80% reduction in label waste, a 60% decrease in total costs, and a measurable reduction in energy usage and carbon emissions. Not only did this improve their profitability, but it also strengthened their commitment to sustainability.
Revolutionizing the Procurement Process
LabelDrive offers unprecedented procurement flexibility, enabling PLMs to lower costs, increase consumer engagement, and generate new revenue streams without sacrificing sustainability. By consolidating label orders and eliminating excess inventory, LabelDrive helps PLMs streamline their operations and gain complete control over their supply chain. This realignment of the procurement model benefits everyone—PLMs, brands, customers, and the environment.
LabelDrive's White-Label Program
If LabelDrive can transform your label procurement strategy, why not offer this flexible procurement model to your PL customers to consolidate, streamline, generate new revenue, and lower costs by up to 60%? LabelDrive provides complete supply chain visibility across all your customers, so you are never in the dark again. Think Different Print handles all support and fulfillment.
Conclusion
It’s time for PLMs to rethink how they procure labels and embrace a solution that drives innovation, efficiency, and sustainability. With LabelDrive’s on-demand procurement service, manufacturers can break free from the constraints of traditional bulk ordering, minimize their environmental impact, and unlock new growth opportunities.
Ready to see how LabelDrive can transform your label procurement process and support your sustainability goals? Learn more about our program and how we’re changing the game for private label manufacturers.
Blog resources: https://blog.thinkdifferentprint.com/labeldrive-a-new-ondemand-procurement/labeldrive-a-new-sustainable-flexible-on-demand-procurement-model-for-plms