PIM systems serve as a Single Source of Truth, meaning that all project-related data for all channels can be stored in one system. In addition to basic information such as product names and descriptions, legal labeling requirements can also be implemented. Since the distribution of product master data can also be automated, the webshop, digital catalog, CRM, and all other channels are always up-to-date.
Implementing Labeling Regulations with PIM Systems
Labeling requirements exist everywhere
There are a variety of industries where labeling regulations exist to inform consumers about certain aspects of a product. Some of the most important industries with labeling regulations are:
Food industry: In the food industry, food products must be labeled according to the Food Information Regulation (FIR). This includes providing information about the ingredient list, nutritional information, allergens, origin, shelf life, and storage instructions. This information must be clearly and prominently displayed on the packaging to enable consumers to make informed purchasing decisions and protect their health. Furthermore, food retailers in e-commerce must also share the same information on their platform. This area is becoming increasingly important as the proportion of online food purchases continues to grow.
Construction industry: In the construction industry, products such as paints, adhesives, varnishes, cleaners, and solvents must be labeled with warnings and safety instructions to protect the health and safety of consumers as well as the environment.
Automotive industry: In the automotive industry, numerous labeling regulations must be followed, relating to various aspects. These include fuel efficiency, emissions, and vehicle safety features. Vehicle manufacturers must ensure that their products comply with applicable standards and must demonstrate this through appropriate labeling and certifications. Additionally, vehicles must be labeled with information about the manufacturer, model, and technical data.
Wood industry: In the wood industry, wood products must be labeled according to the Timber Trade Regulation (Timber Trade Regulation) and the FLEGT Regulation to trace the origin of the wood. Additionally, the Programs for the Endorsement of Forest Certification (PEFC) and the Forest Stewardship Council (FSC) certify wood products from sustainably managed forests.
Paper industry: In the paper industry, paper products must be labeled according to the Paper Labeling Regulation (PKV) to ensure traceability of fiber sources and the protection of forests and biodiversity.
Furniture industry: In the furniture industry, furniture products must be labeled according to the Furniture Labeling Regulation (MKV) to ensure the traceability of materials and the safety of products. Certain furniture, such as children's furniture, must also be labeled with warnings and safety instructions.
Recycling industry: Companies that produce products from recycled waste must ensure that they comply with the requirements of the End of Waste – Treatment of Waste Regulation (EOTR) and that information on the composition and origin of the articles is easily accessible.
We could certainly continue this list. However, the above examples already provide a good impression that numerous companies are confronted with labeling regulations, regardless of whether they are active in e-commerce, brick-and-mortar retail, or both.
Penalties for Non-compliance
Labeling regulations are designed to protect the interests and health of consumers. Ignoring legal labeling requirements can result in sanctions, depending on the extent and severity of the violation. These sanctions can range from fines and product recalls to criminal prosecution and sales bans. Additionally, non-compliance can lead to reputational damage, which can have long-lasting negative effects on your business. To keep track of the relevant legal requirements for your business and effectively implement labeling regulations, it is recommended to use a PIM system.
How can PIM systems help with compliance with labeling regulations?
PIM systems simplify the organization, storage, and management of product master data. They offer a range of benefits that can help you and your company comply with labeling requirements. We will now explain what these benefits are.
Centralized data management
PIM systems enable centralized management of product data, including the information required for compliance with labeling regulations. Through centralized management, companies can ensure that the data is correct, consistent, and contains all relevant information. The PIM thus serves as a Single Source of Truth.
Automation of labeling processes
By automating labeling processes, companies can ensure that the labels are correct, complete, and contain all relevant information. This can facilitate compliance with labeling regulations and reduce the error rate. In particular, when implementing norms such as the FIR, EOTR, etc., automation provides significant added value. Changes to product master data only need to be adjusted once in the PIM and are automatically propagated to all channels.
Management of product variations
If you offer your products in different variations, errors in labeling can quickly occur due to similarities. PIM systems help prevent such errors. Labels containing legal information can also be controlled via the PIM.
Support for multilingual labeling
If a company operates in different countries, supporting multilingual labeling can be challenging. PIM systems can help manage multilingual labels and ensure that all labels are correct and complete.
Low-code actions for FIR management
Another advantage arises with the PIM system Perfion, which has so-called low-code actions. With Perfion, customers can manage their FIR information quickly and easily, among other things. The low-code actions allow for automating operations and processes for managing FIR data, saving time and resources and increasing data accuracy. Users of the actions can quickly and easily automate complex processes for managing FIR data. This saves time and reduces human errors.
Best practice: Managing labels with Perfion
Perfion is a renowned PIM system that enables companies to increase their productivity and efficiency. The system can also support you in managing product labels. For this, five essential steps are necessary.
- Capturing labeling requirements: Perfion allows you to define and capture specific labeling requirements. You can identify required information yourself and set your own labeling rules. There are no limitations on fields.
- Creating label templates: You can create label templates based on your specific requirements. These templates can be created for different product types and categories and include all necessary labeling information.
- Automation: Perfion automates the labeling process by automatically collecting the required information from other systems such as ERPs (Enterprise Resource Planning), PLMs (Product Lifecycle Management), and external databases (e.g., Markant) and inserting them into the label templates. The PIM system also validates the labeling information to ensure that it is correct and compliant with labeling regulations.
- Management of language versions: The multilingual management of labels is fully supported. This includes both Unicode and UTF-8 character sets, as well as the ability to capture and manage language-specific labeling information.
- Monitoring of changes: Perfion automatically monitors all changes to labeling information and ensures that they comply with the predefined requirements. The PIM also logs all changes and allows users to approve, reject, or comment on changes.
FAQ about labeling regulations
Where are labeling regulations applicable?
Labeling regulations exist in many areas, such as the food, construction, wood, paper, or automotive industries. The information that retailers and manufacturers are required to provide is legally regulated. The regulations may vary depending on the target country.
What happens if I violate labeling regulations?
hose who violate labeling regulations may face sanctions, which differ depending on the scope and severity of the violation. Fines and criminal prosecution are common consequences. Violations may also lead to product recalls or a general sales ban. Additionally, if the case gains significant media attention, the company may suffer serious reputational damage.
Do different labeling regulations apply when I sell internationally?
Depending on the industry, labeling regulations may differ when selling to different target countries. To keep track of these variations, it is advisable to manage labeling processes in PIM systems.
Can I automate the labeling of my products?
Companies can and should automate the labeling of their products to minimize sources of errors and efficiently comply with legal requirements. This is especially important for continuous values such as the expiration date or batch numbers.