Lost Assets, Re-Scans, and Supply Chain Blind Spots
BY KATIE FORSYTHE
A technician scans a pump’s asset tag and gets nothing. The barcode has faded and the corner is peeling. The pump is right there, but your asset system can’t see it.
Label failure is when an identification label can no longer be scanned or read reliably, usually because of fading, peeling, abrasion, chemicals, or poor print quality. Labels are among the cheapest items on the bill of materials, yet they link every asset to your ERP, WMS, CMMS, and compliance records. When they fail, the costs spread across lost assets, wasted labor, and supply chain blind spots.
Key Takeaways:
Most labels fail because the material, adhesive, or print method doesn’t match the environment or the asset’s lifespan. Here are some of the common reasons:
Faded print, cracked face stock
Smeared print, lifting edges
Scratched or worn-off barcodes
Peeling on textured, curved, or plastic surfaces
Low contrast or fading direct thermal labels
Label fails years before the asset retires
When a label fails, the asset can’t be verified. Industry estimates suggest 10% to 30% of recorded fixed assets are no longer actually owned. A ghost asset appears on your fixed asset register but can’t be found or verified. An asset with an unreadable tag may sit in plain sight yet fail to match its record during an audit. The results include:
A single re-scan takes seconds. Across thousands of scans, those seconds become hundreds of labor hours a year.
Annual cost = failed scans per day × seconds lost ÷ 3,600 × labor rate × working days.
For example, 200 failed scans a day at 30 seconds each, a $35 loaded labor rate, and 250 working days add up to about 417 hours and $14,600 a year. That’s labor alone.
Manual workarounds add risk. Keyboard entry produces about one error per 300 keystrokes. The same source reports inventory accuracy of 63% to 85% with manual entry or poorly maintained scanning, compared with 95% to 99.9% with well-implemented barcode scanning.
Relabeling adds more labor, especially for assets on rooftops, in confined spaces, or near energized equipment.
Traceability only works if every handoff captures clean data. One unreadable label creates a gap that every downstream partner inherits.
The stakes are rising. Under the FDA’s FSMA 204 rule, covered food companies must produce traceability records within 24 hours of a request, with enforcement starting July 20, 2028.
1. Assess the Application
Document the surface, temperature, UV, moisture, chemicals, abrasion, and service life.
2. Match the Material
Use anodized aluminum for outdoor and long-life assets, polyester for general industrial use, polyimide for high heat, and tamper-evident materials for high-value items.
3. Choose a Durable Print Method
Thermal transfer with resin ribbon, photo-anodizing, and laser etching all outlast direct thermal, which can fade with UV, heat, and chemicals.
4. Pick the Right Data Carrier
Choose 1D barcodes, 2D Data Matrix or QR codes, or RFID based on space and read conditions.
5. Test First
Pilot in the real environment and verify print quality to ISO/IEC standards.
6. Audit Regularly
Track first-pass scan rates and replace labels before failures pile up.
Labels fail when the material, adhesive, or print method doesn’t match the environment. Common causes are UV, chemicals, abrasion, extreme temperatures, and poor adhesion.
A ghost asset is listed on a fixed asset register but can’t be physically found or verified. Unreadable labels make ghost assets more likely.
At least as long as the asset’s expected service life, which is often 10 years or more for capital equipment.
Anodized aluminum and laser-etched metal labels are among the most durable for outdoor and harsh environments. Polyester and polyimide labels work well in many industrial settings.
Your labels shouldn’t be the weak link. DLS helps distributors get the right labels for every application, from durable asset tags to compliant shipping labels to industrial labels built for heat, chemicals, and UV. Our specialists match the material, adhesive, and print method to your environment, so you get fewer failed scans, fewer relabeling projects, and clearer supply chain visibility. Contact us today to discuss your customer's label requirements and find the best solution for their application.
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