How 3PL Companies Can Benefit From Stock Labeling

4/9/2025

Thousands of manufacturers, suppliers, distributors, and other firms now rely upon third-party logistics (3PL) companies to meet the demands and delivery services required for their products. In fact, more than 12% of all North American logistics operations are being carried out by 3PL providers, according to Straits Research, for industries ranging from manufacturing and automotive to retail, healthcare, pharmaceutical, and others.

For 3PL companies to operate efficiently and provide the service their customers expect, they require accurate tracking and the ability to manage considerable quantities of products, often across multiple warehouses. Automation is essential — and so is proper labeling. 

Because 3PL providers operate in a highly dynamic environment, any missteps can pose significant challenges. For example:

• Mismanaged inventory can lead to stock shortages or overstocking
• Inaccurate shipments can lead to dissatisfied customers
• Complicated return processes can erode trust

All of which serves to illustrate the importance of managing inventory, shipping accuracy, and return processes. 

How stock labels can benefit a 3PL operation

Stock labels can offer a straightforward yet highly effective solution to the above challenges. By improving tracking, communication, and transparency, they enable 3PL providers to meet client expectations and maintain operational excellence.

Enhancing inventory management: Stock labels play a pivotal role in maintaining accurate inventory levels. By clearly marking products with numbering, barcode, or QR code labels, 3PL providers can improve tracking, ensuring seamless tracking throughout the supply chain. They can also help prevent discrepancies — eliminating errors caused by manual data entry or mislabeling, reducing stock mismatches. In addition, efficient labeling allows 3PL companies to quickly locate items in their warehouses, ensuring timely order fulfillment and minimizing downtime.

Improving shipping accuracy: Shipping errors can lead to costly delays and dissatisfied clients. Stock labels ensure that each package is clearly and correctly identified with critical data, including:

• Recipient’s contact information
• Sender information
• Tracking numbers
• Weight
• SKU or product description
• Handling instructions

This not only prevents mix-ups but also simplifies package sorting and shipping processes. In addition, accurate labels help carriers adhere to delivery schedules, boosting overall reliability. 

Simplifying the return process: The average return rate for an e-commerce retailer is around 20% - 30%, reports Richpanel. Although B2B rates tend to be lower, returns are an inevitable part of logistics. As a result, return labels are essential tools in reverse logistics. They ensure that the process of returning items is efficient and straightforward for customers as well as businesses. Establishing a clear process for returning products to the warehouse or distribution center helps maintain organization and responsibility throughout the returns process.

RFID labels and operational transparency

Due to their wide range of benefits, RFID solutions are increasingly being adopted by 3PL organizations:

Real-time inventory updates: RFID labels elevate stock labeling by enabling real-time inventory tracking. Unlike traditional barcodes, RFID tags can be read remotely and don’t require a direct line of sight — enabling instant updates to inventory systems as well as increased accuracy in stock counts.

Boosting client satisfaction: RFID labels provide detailed, real-time reporting, allowing 3PL companies to share accurate data on inventory levels and shipment statuses. This transparency builds trust and strengthens client relationships.

Improving shipping accuracy: RFID labels enhance shipping processes by enhancing supply chain visibility and shipping accuracy through:

• Reduced picking errors — by instantly identifying each product stocked in inventory, RFID labels help minimize picking errors
• Real-time product tracking — RFID systems provide continuous updates on the location and status of items throughout the supply chain, enabling companies to monitor shipments with pinpoint accuracy
• Improved inventory management — through their ability to precisely track inventory levels in real-time, RFID labels help optimize product reorder points and help prevent stock-outs
• Enhanced visibility — RFID labels provide an in-depth view of the entire supply chain, allowing a company to identify any trouble spots and adjust shipping routes accordingly

Implementing stock labeling solutions in 3PL

Stock labels are part of the automated solutions necessary for 3PLs to operate efficiently and cost-effectively. These solutions include:

Labeling software: 3PL logistics software automates tasks such as receiving, picking, packing, and shipping, serving to enhance operational efficiency and accuracy.

Printers: Thermal and laser printers are viable options for 3PLs. Be aware of the pros/cons of each option:

• Direct thermal — produces high-quality, sharp images making it ideal for printing barcodes, graphics, and text. Ideal for applications that don’t need to last for an extended time frame, including shipping labels and receipts. Easy to print in batches or as a single label; virtually no waste. 
• Thermal transfer — generates high-quality, sharp, and crisp text, graphics, and barcode images; maximum readability and scannability. Results are long-lasting and fade-resistant. Also easy to print in batches or just a single label, with virtually no waste.
• Laser — High-quality image resolution, prints highly detailed graphics; better color options.

Label selection for effective operations

Although a barcoded shipping label is the most common label used in 3PL operations, a variety of other label alternatives may be required for an effective operation, including:

• Special handling instructions — some packages require extra attention to meet the unique needs of the shipment
• Fragile labels — help ensure shippers properly handle delicate packages
• Arrow labels — guide the correct orientation of products during transit; often required for electronic items and hazardous materials shipments
• DOT labels — if a package might pose an unreasonable risk to health, safety, or property when transported, it’s necessary to add a DOT label
• Inventory labels — such as expiration date labels that help ensure products reach customers before they become outdated, and colored dots that make it easy to visually sort or categorize any type of inventory
• Linerless labels — reduce waste while maximizing print efficiency, ideal for high-volume logistics

In addition, 3PL companies specializing in temperature-controlled, international, or pharmaceutical logistics require:

• Keep Refrigerated or Frozen labels — maintaining specific temperature ranges is crucial for preserving the freshness of food, medication, vaccines, and other perishable items. Clear labeling with refrigeration or freezing instructions ensures proper handling upon delivery. If the contents of a shipment need to stay within specific temperature ranges, temperature-indicating labels, like ColdMark labels, indicate if those ranges have been maintained.
• Harmonized System (HS) codes — HS codes classify products for customs purposes, allowing customs officials to identify the type of goods being shipped and determine if any restrictions or regulations apply.
• Hazardous chemical labels — OSHA regulations include labeling chemical containers, including secondary containers, with the chemical name and the appropriate warnings.

With the 3PL market continuing its marked growth, it’s important to keep in mind the range of benefits that stock labels can offer 3PL operations, including: cost savings due to their sizable production runs; time savings because they’re predesigned and ready to ship; and an expansive selection for common as well as unique applications.

United Ad Label provides innovative labeling solutions designed to streamline 3PL operations, ensure compliance, enhance operational efficiency, and improve customer satisfaction. Contact us to learn more.