What are Skid Labels? – A Complete Explanation 

What are skid label

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Skid labels are labels attached to pallets or Skids that provide essential information about the items they carry. These labels are used for identifying, tracking, and managing inventory in warehouses and during transportation. 

This guide will explain everything you need about Skid labels, from their definition and purpose. So, let’s dive right in!

Skid Label 101

Skid label

Skid labels typically include details such as the Stock Keeping Unit, the quantity of items, destination, and special handling instructions. This information ensures that goods are accurately processed and efficiently moved through the supply chain. 

Skid labels are designed to withstand the elements and handling, ensuring the information remains legible and that the label does not come off during transit. They facilitate communication between different supply chain stages, helping prevent errors and streamline logistics operations. 

Skid labels often feature barcodes or RFID tags for automated tracking and data capture. They can be created using various label design and print software like Seagull Scientific BarTender Software.

Components of a Skid Label

Five components of a skid label

Effective use of Skid labels requires a thorough understanding of their elements. Each element on a Skid label serves a specific purpose, ensuring accurate tracking and handling of goods. 

Key components include. 

  • Product information
  • Handling instructions
  • Destination details
  • Barcodes or RFID tags
  • Skid number

Product Information

Product Information includes details such as the product name, description, SKU, and quantity. This information helps warehouse staff and logistics personnel quickly identify the contents of the Skid.

Handling Instructions

Handling instructions provide essential guidelines for the safe and proper handling of products. These instructions include information on temperature requirements, stacking limitations, and specific precautions to avoid damage. 

Destination Details

Destination details specify the final delivery address of the pallet to ensure it reaches the correct location without any delays. Destination details include the recipient’s name, address, contact information, and any special delivery instructions. 

Barcodes or RFID Tags

Barcodes or RFID tags are essential components of Skid labels that enable automated tracking and data capture. 

Barcodes are scannable symbols that encode product information in a machine-readable format using lines and spaces of varying widths. RFID tags use radio frequency identification technology to store and transmit data without requiring direct line-of-sight scanning. 

To compare barcodes with RFID tags, check out our comparison article on RFID vs Barcode.  

Both barcode and RFID technologies streamline inventory management, improve tracking accuracy, and enhance operational efficiency. This is achieved by allowing quick and precise identification of Skids throughout the supply chain.

Skid Number

The Skid number specifies the sequential order and total count of Skids in a shipment. For example, “Skid 1 of 9999” indicates that this is the first Skid out of 9999 Skids. 

This numbering system is essential for inventory management, enabling efficient tracking and verification of all Skids in a shipment. It helps ensure that each Skid is accounted for, prevents loss or misplacement, and facilitates quick identification during loading, unloading, and storage. 

Types of Skid Labels

Six types of skid labels

Skid labels can vary significantly depending on the industry, the requirements of the supply chain, and regulatory standards. Here are the main types of skid labels. 

  • Standard Skid Labels – These labels include basic information necessary for identification and tracking, such as barcodes, product details, and manufacturer information. They are widely used in various industries for general warehousing and distribution.
  • RFID-Enabled Skid Labels—These labels Incorporate RFID technology for enhanced tracking capabilities. They can store more data and can be scanned without a direct line of sight. They are ideal for complex supply chains, including those in the automotive and pharmaceutical industries, where real-time tracking is crucial.
  • Temperature-Sensitive Skid Labels – Features temperature indicators or loggers to monitor the condition of sensitive goods throughout the supply chain. They are essential for perishable products, such as food and pharmaceuticals, to ensure they are kept within safe temperature ranges.
  • Hazardous Material Labels – These labels include hazard symbols, handling instructions, and emergency contact information to meet regulatory requirements for transporting hazardous materials. They are used by chemical manufacturers and companies involved in shipping flammable, corrosive, or toxic substances.
  • Custom Skid Labels – These are tailored to specific customer or industry needs and can include various elements such as branding, special security features, and unique identifiers. They are useful for companies requiring high levels of customisation, such as branding or additional security for high-value items.
  • Eco-Friendly Skid Labels – These labels are made from sustainable or biodegradable materials designed to reduce environmental impact.

Why are Skid Labels Important?

Seven advantages of skid labels

Skid labels offer numerous advantages that enhance the efficiency and accuracy of supply chain operations. This section will explore the key benefits of using Skid labels in detail.

Improved Tracking and Identification

Skid labels significantly enhance tracking and identification processes within the supply chain. Including detailed information and barcodes or RFID tags enables easy tracking of each Skid from the warehouse to its final destination, improving inventory accuracy and ensuring timely and correct deliveries.

Enhanced Inventory Management

Skid labels maintain accurate inventory records by providing precise product information and real-time tracking capabilities. This visibility allows for better demand forecasting, efficient restocking, and optimised warehouse space utilisation.

Reduced Errors in Shipping and Handling

Clear, concise information on Skid labels about the contents and destination reduces errors in shipping and handling. Automated data capture and verification through barcodes and RFID tags lead to fewer shipping mistakes and returns, streamlining the logistics process.

Streamlined Warehouse Operations

Skid labels help quickly locate and process items in the warehouse, reducing the time needed for manual data entry and minimising human error. This leads to quicker turnaround times and improved order fulfilment rates.

Regulatory Compliance

Skid labels help ensure products are transported and stored according to industry standards and regulations. They specify requirements like temperature control and hazardous material handling. 

Efficient Sorting and Streamlined Decision-Making

Skid labels improve the sorting process and decision-making by providing visible, accurate information. This enables quick identification, routing of goods, and real-time responses to logistical challenges, enhancing overall supply chain management.

Real-Time Visibility

Continuous tracking provided by Skid labels offers real-time visibility into the movement of goods via barcodes or RFID, informing stakeholders and allowing for proactive supply chain management.


In conclusion, skid labels play a pivotal role in the logistics and supply chain sectors, offering critical support in tracking, managing, and ensuring the safe transport of goods. These labels provide essential information that enhances operational efficiency and compliance with regulatory standards. 

With capabilities ranging from real-time tracking to detailed product handling instructions, skid label technology helps companies maintain high levels of accuracy and efficiency in their operations. Adopting the right type of skid label is key to optimising logistics processes and meeting the demanding requirements of modern supply chains.

We hope this article was useful.

Thanks for reading. 

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