A Label Converter’s Inventory Strategies Can Impact YOUR Bottom Line – Here’s How

If you use direct thermal labels, thermal transfer labels, water-activated tape or other labeling products to help bring your products to market, chances are, you want very quick access to the labeling products you purchase, whenever and wherever they’re needed.

At OMNI Systems, we understand just how important it is to provide our worldwide customer base with the highest-quality thermal labeling products at the lowest possible prices—and meet strict delivery requirements in the process. That said, thermal labels come in a seemingly endless number of shapes, sizes and types, with hundreds of available options on top of that. While it’s theoretically conceivable for a label converter to stock every possible labeling item at all times, doing so would be a costly proposition for everyone involved. That high inventory expense would need to be absorbed somehow. The most logical way: passing on higher prices for end user customers.

Think about it: If a label converter incorrectly forecasts customer demand for certain products – or if they simply stock as many products as possible – it’s a good bet that unsold inventory will accumulate over time. Consequently, that increases the operational cost of housing that inventory, which puts pressure on the label converter to raise prices on more popular products that do sell just to break even.

OMNI Systems has built its industry leadership over nearly 30 years in large part by being highly strategic about the way we manage our inventory. We can deliver whatever thermal labeling products you need very quickly—oftentimes the next day, and always on time, guaranteed. Being the label converter of choice for many of the world’s leading brands, we’re also highly experienced and capable when it comes to delivering orders to multiple locations and meeting the toughest logistics requirements. But to remain the undisputed industry leader in price – to offer the lowest prices on direct thermal labels, thermal transfer labels, water-activated tape and more – we take a four-pronged approach toward inventory and operational management:

• We buy raw material at highly discounted rates, then pass the savings directly to you without sacrificing quality or customer service.
• We run at optimal efficiency – low efficiency generates more product scrap and increases production costs. OMNI’s optimal production efficiency ensures the lowest possible cost for you.
• We keep our product focus tight, and our operating costs low – we’re specialists in thermal labels and water-activated tape. We don’t take chances with our product mix or overextend our production capacity or inventory. We’re keenly aware of which products our customers purchase most often. We also continuously remove unnecessary and redundant processes from our operations. You’ll get exactly the products you need without paying extra to support high overhead costs for other non-core products.
• We are a debt-free, financially stable company – high inventory levels may be a signpost to burdensome debt for some label converters. Servicing debt takes money, and often, that cost is passed along to you through higher prices. OMNI Systems has no debt obligations, so our lowest industry prices are never compromised by this hidden cost.

If you’re doing business with a label converter that advertises exceptionally high inventory as its primary market advantage (i.e., “We stock every item you need, whenever you need it”), your label spend could potentially be higher than it should be. We hope this blog helps you understand how a label converter’s inventory strategies can impact your bottom line, and we welcome the opportunity to discuss how OMNI’s leadership in price, quality and service can help you save 15-40 percent on your label spend over current costs and make your job easier.

Do you have questions about direct thermal labels, thermal transfer labels, water-activated tape or other labeling needs? Please contact David Irwin, Vice President of Business Development, at 216-377-5169 or email David.