10/17/2013. In the beginning a label was simply

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1 GHS Creates New Challenges for Product Labeling Andy Scherz 10/23/13 1 Labels are a critical part of production Everything requires labels today Labels are part of the product Label production is part of the product s production Efficient and reliable label supply is critical If you don t have the right label production stops 2 It all started so simple In the beginning a label was simply used identify what was inside 3 1

2 Then competition begins Companies build and promote brands to distinguish their products and develop customer loyalty 4 Branding really requires color Color is proven and powerful factor in branding 5 New products and sub-branding branding Technical innovations are leading to more & more products Branding is often at the product level Highly targeted niches The numbers of SKU s are exploding 6 2

3 Result is an explosion in label designs Different label sizes to match product package sizes Different colors, logos and branding This huge volume of label variability presents special challenges in operations 7 Typical print process today + Static color laid down by Flexo Press in large run Thermal printer adds variable data in black 8 Flexo cost varies wildly by volume PRINTING COST PER LABEL BY VOLUME 20, ,000 Optimal Order Quantity Per Run Almost all cost is setup Labor intensive creation of plates, alignment, testing, mixing ink Ranges $500 to $1,500 each run Incremental cost per label is negligible Really only cost of ink Large runs needed to amortize setup cost 9 3

4 High variety and Flexo don t mix TOTAL LABEL INVENTORY COST Inventory costs soar as number of unique formats grow NUMBER OF UNIQUE LABEL FORMATS Every unique format requires setup & run Analog process Every label must be identical Each must be ordered in bulk quantity Amortize setup Huge space and capital investment 10 Huge inventory, expense and waste Every variation of image, color code, brand, or logos requires a unique pre-print Optimal run size is > 20K Any changes and inventory becomes scrap Challenge matching preprint stock with black variable data 11 Safety requirements adds complexity Labels are now a key component in product safety Much bigger role than just branding and identification Increases the overall labeling complexity 12 4

5 Branding or Safety Color focuses attention WARNING DANGER CAUTION FLAMMABLE READ MANUAL TOXIC Color has a power to capture attention Safety can be enhanced if color is used to highlight key warnings Which warning stands out the most? 13 Adding color warnings the straw that breaks the camel s back Brands, size & warnings creates too much color variability to manage with traditional bulk printing press methods New GHS standards require a rethinking of label operations 14 What is GHS? GHS is a worker safety initiative to provide chemical handlers with important hazard information Creates a single international hazard warning communication using standardized color pictograms BEFORE - DOZENS OF LANGUAGES NOT STANDARDIZED Acid Hazard Peligro Acid Risque d'acide säure Hazard кислота опасности 酸の危険 AFTER GHS - SINGLE INTERNATIONAL PICTOGRAM PER HAZARD 5

6 Mandated Variable Color Decision to leverage color for warning icons Each chemical presents unique hazards Each must be labeled with precise color hazard warnings to match Before label and warnings could be printed monochrome Now - a variable color solution is required MUST MATCH HAZARDS NO EXTRAS OR BLANKS 16 How to handle variable color? Two Step - Variable color greatly increases complexity of traditional pre-print / monochrome solutions Explodes number of required templates Creates risk of errors matching templates to printing Huge inventory of pre-prints Lost time at each changeover INVENTORY OF PREPRINTS On Demand Solution Load blank stock and print everything in color in one step! Enhance workflow 2-Step Process Huge stocks of pre-print label Need to change rolls for every color change Order, Receive, inspect Color On Demand Manage inventory Less stock of blank label Secondary printing Use Print flexible design on blank label 6

7 Just In Time Color Solutions Printing color labels on demand offers broad benefits Responsiveness - Produce new labels without printer s lead time Lower inventory Reduce errors Improving Manufacturing Processes Improving Shipping Processes Identifying Items Quickly Increasing Sales On demand color alternatives Color laser Color thermal transfer Color ink jet 20 Color laser Good image quality High speed Best suited for batch print runs Long warm up time to first label Poor form factor for industrial applications Label waste Typically fed in large multi-up sheets. If only one label is needed many can be waste High equipment cost 21 7

8 Color thermal transfer Quick time to first label Good image quality High speed Suited for batch or on demand print runs A bit large, but typical industrial form factor High equipment cost Very complex mechanism In essence four printers in one Challenge to operate with consistent results 22 Color inkjet Quick time to first label Small footprint typical industrial form factor Good image quality Low equipment cost Suited for batch or on demand print runs Very simple to operate Very low maintenance Medium speed Color printing is simply a natural fit inkjet technology 23 Easy is not enough must be durable A label failure is a product failure If it doesn t look great it can t support the brand It can t be read, it can t warn Can inkjet stand up to the challenge? 24 8

9 Not all inkjets are the same Micro Piezo Method Precise pressure control Wider range of ink types Super long life Oscillating plate Piezoelectric element Ink reservoir Pull Push Pull Thermal printing method Only creates positive pressure with less accuracy Ink must have precise boiling properties Pigments can clog Heating Heater Heating MicroPiezo coupled with pigment ink Bold text, colorful graphics, and superb photos Smudge resistant prints Water resistant prints, even on plain paper Mission critical image durability Epson DURABrite Ultra pigment particles rests on the paper surface. The transparent encapsulation layer make the pigment ink insoluble in water. Conventional dye-based inks are absorbed into the fiber of the paper. Without any protection layer, the dye ink soluble in water. Water spill example 26 BS 5609 Certification Super Durability Label must survive harsh environment and harsh chemicals to serve its intended safety purpose Colors and printed warnings must not fade or smudge BS5609 is the benchmark test for extreme durability Epson DURABrite inks on Kimdura harsh environment synthetic media is first ink jet solution to meet this tough standard. Includes Section 2 Extreme environment marine exposure Includes Section 3 Image abrasion, salt spray & sunlight Actual testing site for labels meeting BS5609 Beyond BS5609 Strong resistance to many chemicals MEK, alcohol, oil, acetone 9

10 Lowest cost BS5609 solution EPSON DURABrite on Kimdura media Full Color BS5609 Plus LASER Dry toner on Vinyl Full Color BS5609 THERMAL #1 Hi. Perf. Resin on Polyester Red & Black only BS5609 THERMAL #2 Wax Resin on Polypropylene Red & Black only NOT BS5609 COST PER TYPICAL GHS LABEL X 11 -MEDIA - INK-TONER-RIBBONS NOT BS5609 LOWEST TOTAL COST LOWEST IMAGE COST 28 Epson Color Label Printers Lowest up front cost Lowest operating costs Most durable label GP-C831 6,000 labels per day* 14 labels per minute* Sizes up 8.5 x 22 * 8.5 x 11 size TM-C3500 6,000 labels per day* 25 labels per minute* Sizes up to 4.2 x 44 * 4 x 8 size Label content The advantages of on demand color label production to create an efficient supply chain makes sense However, this creates a big challenge to the plant manager to effectively manage all the label content Proper branding images Proper warning icons Proper safety labeling instructions Revision control How can this challenge be managed? 30 10

11 The Wercs Explain the advantage of software like the Wercs to help manage all these label formats 31 Questions? Andy Scherz Tel (Central/Western region) Tel (Eastern region/canada) 11