When we talk about the cost of business systems, we often refer to the actual cost of purchasing or subscribing to install and use a system. At most, we recognize basic additional costs such as maintenance, licensing and training, which are associated directly with the installment and functionality the product. However, there are many other direct and indirect costs that should be accounted for and yet are often disregarded or never even considered. These can include the team that will be working with the new system, their workload, frequency of use, issue resolution, compliance standards and even language/localization related costs.
In a recent webinar, NiceLabel VP & GM Lee Patty talks about the costs associated with labeling in detail. We’ve put together a set of questions that will help you realize and calculate how much your current systems are costing you.
Key questions – Direct Costs
- How many people are involved in the design and print process?
- How much time does IT spend helping business users design labels?
- How long does it take for you to deal with label change requests?
- How many templates or label variations do you have to create and manage?
- How much do you have to rely on your IT department to support and maintain your labeling system?
- How much time and effort does it take to integrate your business applications and master data with labeling?
- If you have to do re-labeling at goods-in, how long does it take?
- What non-compliance fines or penalties could be levied against you for inaccurate labeling?
Key questions – Indirect Costs
- What impact does unplanned downtime or delayed shipping have on your business?
- What happens when you have to interrupt operations to reprint labels?
- How long are your production setup times for labeling?
- What are the costs associated with mislabeling or product recalls?
- How much time is spent on translating/localizing labels?
- How much time do you spend maintaining a paper or file based catalog of all labels?
- How many people are involved in approving your label designs?
- How long does it take to audit your print/user history?
- How long do you have to wait for your labels to print?
Now, think about the time, resource and costs associated with the answers to these questions. The number can get big very quickly. What direct and indirect labeling costs impact your organization? Let us know in the comments section below. We’d love to hear!