LabelDrive: A New Sustainable, Flexible, & On-Demand Procurement Model for PLMs

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 Outdated models—marked by high minimum order quantities (MOQs), long lead times, and limited procurement flexibility—have stifled innovation and created significant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:

• 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.
• 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.
• 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.