How Electronic Shelf Labels Effectively Reduce Labor Costs?

With the development of technology, more and more retail companies have realized the importance of improving operational efficiency and reducing costs through technological change.


And with the continued impact of Covid-19, online and offline tend to merge. The application of electronic shelf label guarantees the synchronization of commodity prices in all channels. What’s more, it is also an important factor to improve efficiency and reduce labor cost.Save Time in Changing Shelf Labels

The electronic shelf label system is interfaced with ERP and synchronized with price adjustments. This improves efficiency and reduces the repetitive, time-consuming work of employees. It takes only a few minutes to change the price of tens of thousands of items.

In a supermarket with 40,000 items, it takes 7 seconds for an employee to change a paper shelf label. With three price changes per week, it would take 20 employees to work 8 hours overtime to change the shelf labels for all products. In one year, the supermarket would have to pay 20 employees (at 20 euros per hour per employee) 242,666 euros for the replacement of paper shelf lalbels. After using the electronic shelf label, the supermarket can save 242,666 euros a year in overtime wages, five years can save 1.2 million euros in labor costs.

Flashing Light Function Reduces Picking Time

As the pandemic continues, some customers are choosing to shop online for home delivery. Increasingly, orders need to be picked and delivered at the supermarket. Electronic shelf labels equipped with flashing lights can indicate the location of each picked item, reducing picking time by 5 to 10 seconds per item.

For example, if there are 100 orders to pick in a day, with 30 items per order, and employees are paid 20 euros per hour, 7 days a week, the average picking time is 7 seconds per pick, which equates to an annual savings of over 42,500 euros.

Electronic shelf labels have improved retail efficiency and reduced high labor costs due to their high degree of digitization. At present, electronic shelf labels are used in a wide range of applications - retail, medicine and health, intelligent office, warehousing and logistics, etc. With a wide range of accessories to meet various complex scenarios, they will also contribute to the reduction of labor costs in these fields.