What is label Compliance? Literally, it means meeting or complying with the labeling guidelines set down by a customer. The customer, whether it is a retail firm, shipper, or manufacturer, has created its own labeling specifications to fulfill its transportation and logistical needs. It is up to the supplier to meet those guidelines. Failure to do so could result in return of product, fees, or contract termination.

Organizations like the UCC (Uniform Code Council), the AIAG (Automotive Industry Action Group) and HIBCC (Health Industry Business Communications Council) have developed specific industry labeling standards. Their guidelines minimize problems between trading partners by creating a basic structure all suppliers and customers can agree upon. The guidelines are implemented on a volunteer basis.

In practice, the benefits of compliance labeling are fairly obvious for the customer. A bar code labeling standard helps monitor inventory, assists replenishment, minimizes distribution time, and allows for product traceability. The supplier's initial time and expense appears to be justified only in maintaining a business relationship with a customer requiring label compliance. But, over time, the increased accuracy, improved order picking, and streamlined inventory will be solid evidence that a bar code labeling system benefits both sides. The bottom line is to get the right product to right place in the shortest possible time.