Carrier Corporation Realizes a Cool $7.4 Million in Savings through Innovative Printed Production Parts Solutions and Technology

Global manufacturer Carrier is deeply rooted in a philosophy of continuous improvement. In an effort to refine one of its business processes, the company began a search for an accurate, uniform labeling system that would meet the needs of its diverse products and global requirements.

With sales approaching $12.5 billion, Carrier Corporation, a subsidiary of United Technologies Corporation, is the world’s largest manufacturer of air conditioning, heating and refrigeration equipment for commercial, residential and transportation applications. Headquartered in Farmington, Conn., the Fortune 1000 company employs approximately 45,000 people and delivers Carrier solutions to customers in more than 170 countries and 30 languages.

Product labeling is a challenge for any manufacturer in today’s highly regulated environment. However, for Carrier that challenge is magnified hundreds of times over. The company has 62 manufacturing facilities on six continents. Every facility has a unique set of products and each product needs its own content, warning and wiring diagram labels. Each facility also must meet local regulatory and language requirements.

Before teaming with Standard Register, Carrier had no standardized label program. Each of its plants utilized local vendors to produce needed labels. Consequently, labeling was inconsistent, inefficient and costly to produce and inventory.

Carrier faced a special challenge. Commercial air conditioners required a unique “InfoPlate” label that details all types of critical component information. Relying on manual data entry, the process was inefficient and prone to errors that could be very costly. If a mistake was found, it could shut down a production line. If overlooked, it posed a risk of injury to the installer.

To help ensure accuracy of InfoPlates, Standard Register developed software that integrated Carrier’s data files to the print function, which automated the process and eliminated manual data entry. This automated solution has resulted in nearly 100 percent accuracy for the commercial air conditioning plant.

In addition to the InfoPlates, Carrier’s overall labeling challenge was complex. It required a multi-faceted solution. It needed to be flexible, yet standardized so that it would promote process efficiency, reduce costs and increase accuracy. A uniform system also would help to promote Carrier brand recognition around the world. Carrier turned to Standard Register for assistance.

Before a solution was proposed, a Standard Register team toured each Carrier facility, talking to manufacturing, product and line engineers to evaluate specific needs, and identify the technical and operational requirements. Then Standard Register carefully tailored a solution to Carrier’s needs.

The team established a uniform labeling system. Labels were redesigned to provide a consistent look. Product information that had previously been listed on several different labels was integrated into a single one. Several plants were also given a standardized kit of die-cut labels on a single sheet to further simplify handling and minimize inventories.

Standard Register’s solution also enabled Carrier’s plants to print certain labels on demand. Wiring diagrams, charging charts and other dynamic labels are now printed when needed. This has reduced both printing and inventory costs, and at the same time, has eliminated label obsolescence and provided greater assurance that the most up-to-date information is affixed to each product.

Standard Register also provided Carrier with several tools to improve supply chain efficiency. A convenient, online label catalog gave Carrier plants the ability to browse through existing, standardized labels to select designs for new applications. Paper purchase orders were eliminated through Electronic Data Interchange (EDI) technology links which were set up between Carrier’s material requirements planning system and Standard Register’s ordering system. What’s more, electronic invoicing replaced paper billing.

It’s a comprehensive set of solutions that dramatically improved Carrier’s supply chain efficiency and achieved their goals. Labeling consistency was established across product lines, increasing Carrier brand equity. Local regulatory and language needs were met. Carrier reduced the total number of label SKUs by more than 2,000. Inventory, label printing and paper-handling costs were greatly reduced.

Record keeping became more accurate and timely across all plants and assembly lines. Since partnering with Standard Register, Carrier has reduced costs for labels by more than $7.4 million.