The 3PL sector is under increasing pressure, with margins being squeezed by rising prices and intense competition, which means that businesses are looking to be ever-more efficient, and labels have an important role to play in achieving this goal. Increasingly, labels are smart and can be used to track items throughout their journey and ensure they get to their destination as soon as possible and this – along with the printers that print them – presents opportunities for resellers.
3PL – third party logistics – providers are facing increasing pressures from all sides. Not only are costs rising, most notably fuel in recent months, but also customers are becoming more demanding and wanting items delivered ever faster.
This means that 3PL providers are looking for efficiencies wherever they can find them, and labelling has a vital role to play in this as goods pass through the supply chain.
As Deyon Antoine, product marketing manager at Toshiba Tec UK Imaging Systems Ltd, notes, labelling has become a critical enabler of warehouse automation. “Automated sortation systems, warehouse management software, robotics and scanning technologies all depend on accurate, machine-readable labels to identify and route products,” he says.
“As fulfilment operations become faster and more complex, labels are evolving from simple identifiers into data carriers that drive visibility, traceability and operational efficiency. In automated environments, label quality directly impacts productivity, making reliable printing and barcode accuracy essential to maintaining throughput and minimising costly errors.”
Jeremie Brocas, sales manager France at Bixolon Europe GmbH, adds that by 2027, Statista forecasts the 3PL market will exceed $13.7 trillion.
“Clearly, there is immense opportunity for fulfilment organisations to thrive,” he says. “However, with many 3PLs facing ongoing staffing shortages, automation technologies are becoming increasingly important in helping organisations manage operations efficiently and capitalise on this growth. Barcode scanners and label printers form a critical part of this technology ecosystem, helping to keep warehouses organised and goods moving through the supply chain.
“As automation increases, effective labelling is becoming even more essential for maintaining the traceability of goods throughout the fulfilment process. Label printers produce labels containing key information, including 1D and 2D codes, in line with the requirements of manufacturers, retailers and shipping companies. These labels are applied to pallets, boxes and stock as goods are unpacked, delivered and moved through the supply chain.
“Crucially, these codes carry information that aligns with order management systems, warehouse management systems (WMS) and transport management systems. They provide a single source of truth that barcode scanners can work from, enabling different systems to communicate and helping the supply chain remain organised. As 3PLs increasingly embrace automation, ensuring labels are high-quality, readable and reliably scannable is therefore critical.”
Javier López, VP of marketing at OKI Europe Ltd, agrees that labelling is becoming increasingly important in 3PL as businesses look for ways to improve speed, accuracy and efficiency across increasingly automated operations.
“Labels are no longer simply a way to identify a parcel. They can carry barcodes, QR codes, routing information, handling instructions and other variable data that helps goods move through the supply chain with fewer errors,” he says.
Trends
There are various labelling trends among 3PL businesses currently. One of the clearest is the move towards more flexible, on demand label production, notes Javier. “3PL providers often manage large numbers of customers, products and delivery requirements, so the ability to produce short runs and change label content quickly is increasingly valuable,” he says. “Colour can also help operators identify products, destinations, priorities or handling requirements immediately.
“At the same time, labelling is becoming more closely connected with traceability. The printed label can act as the physical link between an item and the digital information associated with it. OKI’s go to market proposition includes the Evidnt traceability platform, developed by Tongadive, which helps businesses connect physical items with digital records and improve visibility throughout the supply chain.”
Deyon adds that while traditional barcode labels remain the industry standard, demand is growing for smarter labels that support greater visibility and automation. “RFID labels are gaining momentum because they can be read without line-of-sight and enable faster tracking of items, cartons and pallets,” he says.
“At the same time, the GS1 Sunrise 2027 initiative is accelerating interest in 2D barcodes such as QR Codes and DataMatrix, which can carry significantly more product and traceability data than linear barcodes. This allows logistics providers to improve visibility throughout the supply chain.”
Jeremie agrees that RFID-enabled labels continue to grow in popularity. “They help automate inventory management and traceability within distribution centres (DCs) or fulfillment centres (FCs), enabling accuracy in real time,” he says.
“As the technology becomes more prevalent across retail and the supply chain, implementation costs have fallen, meaning more smaller and mid-sized companies are taking advantage.
“Increasingly freighters are also using PDF direct printing. This method simplifies the printing process, as the printer receives a simple PDF file and then automatically translates it into printer language.”
What customers want in a printer
As trends change in what is wanted from a label, so too does the demands on the printers that print those labels. “For most 3PL businesses, reliability and uptime outweigh raw print speed,” notes Deyon. “Warehouses often operate around the clock, so downtime can quickly impact fulfilment targets and customer service levels.
“Customers are looking for durable, industrial-grade printers that deliver consistent output, integrate seamlessly with warehouse systems and support emerging technologies such as RFID and GS1 compliant 2D barcodes.
“Toshiba’s GS1 certified BX410T Series is an example of how businesses can future-proof investments while preparing for new barcode standards and traceability requirements.”
Javier agrees that for 3PL customers, printer performance is about more than speed. “Reliability and uptime remain critical, but print quality, media flexibility and the ability to handle variable content efficiently are increasingly important too,” he says. “On demand production can also reduce reliance on stocks of preprinted labels.”
Jeremie adds that linerless labelling printers are also increasingly popular. “Traditional labels have always required the removal and disposal of plastic backings, which takes up time and space in a busy DC or FC,” he says. “In contrast, linerless labels can be printed and stuck directly onto items without having to remove a sticky plastic backing, and can come in a mobile format, which proves useful when changing labels on racking or on larger items.
“Finally, stationary desktop labels are a common choice within the 3PL sector. These printers are often located at areas where pallets are received from clients before they are unpacked, labelled and redistributed through the FC. They are also found at packing stations, where goods are packaged and labelled according to an array of shipping companies’ preferred label configurations.”
Reseller conversations
When talking to customers in the 3PL sector about labelling solutions, there are various facets that should be highlighted.
“For resellers, the opportunity is to look beyond the printer specification and understand the customer’s wider workflow,” says Javier. “Questions around what is being labelled, how items are tracked, how often information changes and where errors occur can uncover opportunities around label production and traceability.
“At OKI, our digital toner label printers support flexible, short run and variable label production, including CMYK plus white printing with the Pro1050. Together with the Evidnt traceability platform proposed by OKI, this opens up a broader conversation about how printed labels and digital traceability can work together within the customer’s operation.”
Jeremie says resellers should make 3PL customers aware of several factors when discussing labelling solutions. “First, the versatility and reliability of the labelling device are important,” he says. “This includes ensuring there is less downtime when using devices; fewer spare units are needed, and demonstrating that standard printing coupled with RFID is possible.
“In addition, maintenance needs to be easy for first-level changes, for example, print heads or Platten rollers.
“Resellers should also recommend that customers select devices which are compatible with WMS and ERP systems to make data collection accurate, easy and streamlined. Finally, printing accuracy when using mobile printers is vital, especially when used during cross-docking, because organisations cannot afford to have a label mismatch occur during this key process.”
Deyon says that resellers should move the conversation beyond print speeds and hardware specifications. “The focus should be on how labelling solutions improve inventory accuracy, reduce manual intervention, minimise shipping errors and support wider automation initiatives,” he says.
He adds that there is also value in helping customers prepare for evolving industry standards. “GS1 certified devices such as Toshiba’s BX410T Series provide confidence that businesses can support current barcode requirements and the growing adoption of GS1 Sunrise 2027 compliant 2D codes, protecting long-term technology investments.”
Future prospects
Changes seen in this market over the past couple of years are expected to continue in the next 12-18 months. “The market is expected to see continued growth in RFID adoption, greater demand for end-to-end traceability and closer integration between labelling solutions and warehouse automation platforms,” says Deyon.
“The transition towards GS1 compliant 2D barcodes will also gather pace as businesses prepare for Sunrise 2027. For channel partners, the opportunity will increasingly lie in delivering integrated solutions that combine printers, labels, software and data capture technologies. As supply chains become more data driven, labelling will play an increasingly strategic role in operational efficiency and visibility.”
Flexibility, reliability and efficiency will continue to grow as important competitive differentiators for 3PL businesses, adds Jeremie. “This will be particularly evident in cross-docking services,” he says. “Changing customer expectations will mean 3PLs need to deliver seamless, scalable processes that quickly adapt to changing requirements. As a result, greater emphasis will be put on high-quality, consistent and integrated printing solutions that can accommodate demands for more detailed labelling information, while supporting innovations such as visual inspection systems and augmented QR codes.
“Ultimately, access to a broad range of reliable print solutions from a single provider, which will allow solutions to be swapped in and out as required, will be key for 3PLs wishing to successfully respond to evolving client expectations fast, while driving continuous improvement.”
Javier expects the link between labelling, automation and traceability to become even stronger. “This will give resellers an opportunity to move from simply supplying printers to helping customers improve the way goods are identified, tracked and managed,” he says.
This article first appeared in Print in the Channel magazine issue #41
