Healthcare Packaging March/April 2022

Page 34

LABELING

Read this story on sustainability trends affecting EOL operations at hcpgo.to/EOL3

Demand for Supply Chain Visibility Leads to Labeling Enhancements for EOL Operations KIM OVERSTREET, DIRECTOR, EMERGING BRANDS COMMUNITY TOP THREE TAKEAWAYS 1. The need for product visibility in the supply chain continues to increase.

2. This means new demands on end of line operations.

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n the end of line (EOL) packaging space, the demand for greater product visibility is driven by a combination of regulations, retailer requests, and manufacturer logistics. These three forces are leading to expanded labeling for end of line packaging configurations, allowing for greater efficiency and accuracy in product tracking through the supply chain. Read on for perspective from PMMI’s report, 2021 End-of-Line Equipment Purchasing Trends and Design Insights.

Regulations In the area of U.S. regulations, the Drug Quality and Security Act (DQSA) and the Food Safety Modernization Act (FSMA) are the primary legislation affecting the pharmaceutical industry and the food and beverage industries, respectively. And the result for both is more visibility of products—particularly bulk bundles and pallets— as they move through the supply chain. For pharmaceuticals, Title II of the DQSA, the Drug Supply Chain and Security Act (DSCSA), requires the complete serialization of products from the individual product level all the way up to pallets. For food and beverage manufacturers, Section 204 of FSMA requires detailed production and distribution records to be kept in case of a product recall.

3. Most often the focus is labeling enhancements and vision inspection.

Manufacturer logistics Supply chain product visibility also enables manufacturers to better track shipments and forecast future production needs, or manage e-commerce and direct-to-consumer solutions—especially when setting up channels for online purchasing. Even manufacturers that outsource portions of e-commerce production and distribution must tightly track product inventories to gauge available supply. All of these drivers require packaging lines to adjust end of line strategies through more labeling on tertiary packaging, which enables more efficient tracking of bundled products through the supply chain. EOL operations must also be integrated into a larger ERP system to manage production, track shipments, and predict future distribution needs. Many manufacturers are using enhanced labeling solutions such as QR codes, NFC labels, and RFID markers on tertiary packag-

Retailer requests Retailer requests for increased product visibility in the supply chain impact many CPG manufacturers. In order to plan their own inventory management and distribution systems, the largest retailers can dictate new tertiary packaging arrangements and require additional visibility into the movement of products through their own supply chains. Retailers are driving changes in pallet configurations, coding/ marking visibility, pallet labeling, traceability, and the expanded use of direct printing on EOL packaging. 34 | Healthcare Packaging • March/April 2022

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