LabelDrive: A Paradigm Shift in Label Procurement

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:

• 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. 
• 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.
• 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 mpohlkamp@ltlco.com or visit Think Different Print.