How to Design Colour-Coded Labels for Safe Inventory Management
Inventory management is more than counting and storing stock. For businesses in logistics, retail, food, and manufacturing, safety and accuracy are essential. Mistakes can lead to wasted stock, compliance issues, and even workplace hazards. One of the most effective ways to avoid these problems is by using colour-coded labels.
Colour-coded labels are a simple yet powerful tool for safe inventory management. By assigning clear visual codes to products, warehouses can reduce picking errors, improve compliance, and increase efficiency. Learn how to design effective colour-coded labels and discover how Label Metrics can support your business with durable, high-quality options.
A well-designed labelling system helps staff make faster, more accurate decisions while ensuring compliance with safety standards. This guide explains how to design colour-coded labels that work and shows how Label Metrics can provide the tools you need.
Why Colour-Coded Labels Improve Safety and Efficiency
Colour-coded labelling is a proven method to organise stock and protect staff.
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Reduce misplacement and picking errors: Bright visual cues help staff quickly identify products.
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Support compliance and safety: Hazardous or restricted items can be clearly marked with warning colours.
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Improve efficiency: Staff spend less time checking item numbers and more time moving stock.
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Increase visibility: Colour helps identify categories, dates, or storage requirements at a glance.
For warehouses, factories, and retail environments, colour-coded labels are a low-cost step that delivers measurable safety and productivity benefits.
Designing an Effective Colour-Coding System
The success of colour-coded labels depends on a clear and logical design.
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Choose a simple scheme: Use recognisable associations such as red for hazard, green for approved, and blue for information.
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Avoid colour clashes: Ensure colours are distinct and consider accessibility for colour-blind employees.
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Be consistent: Apply the same colours across all storage areas, packaging, and inventory systems.
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Refer to standards: Where applicable, align your colour choices with HSE or ISO guidelines.
A consistent colour-coded system reduces confusion and increases safety across your workplace. Where possible, align your colour choices with recognised standards such as those outlined by the Health and Safety Executive’s guidance on safety signs and signals.
Practical Steps for Creating Labels
Beyond colour, the design of the label itself is equally important.
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Label size and material: Larger labels are easier to spot in busy warehouses. Durable materials prevent fading and damage.
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Adhesive type: Choose permanent adhesive for long-term labelling, removable adhesive for temporary use, and freezer-grade adhesive for cold storage.
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Add barcodes or QR codes: Colour-coded labels should work alongside scanning technology for accurate digital tracking.
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Clarity and print quality: Text should be legible, and colours must remain bright even with regular handling.
At Label Metrics, you can select from a wide range of direct thermal and thermal transfer labels with adhesives designed for specific environments.
Common Mistakes to Avoid in Label Design
Even with good intentions, poor design choices can undermine your system:
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Too many colours: Overcomplicating the scheme confuses staff. Keep it simple.
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Low-quality adhesives: Labels that peel off create risk and wasted time.
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Lack of staff training: A colour-coding system is only effective if employees understand how to use it.
Avoiding these mistakes helps your labels support safety rather than compromise it.
Case Example: Colour-Coded Labels in Action
Consider a food storage facility where frozen goods must be separated from fresh produce. By implementing colour-coded freezer-grade labels, staff can instantly identify storage requirements and expiry dates. This reduces cross-contamination risks, ensures compliance with food safety regulations, and saves time during inspections.
How Label Metrics Supports Safe Inventory Management
At Label Metrics, we make it simple to design and implement an effective colour-coded system.
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Wide product range: Direct thermal labels, thermal transfer labels, and specialist coloured labels.
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Adhesive options: Permanent, removable, and strong freezer-grade adhesives.
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Label equipment: Applicators and dispensers to improve efficiency.
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Trusted supplier: Rated 4.6 from over 30 reviews for quality, reliability, and service.
Explore our solutions to support your inventory safety and organisation:
Get in touch today
Designing colour-coded labels is an essential step toward safer, more efficient inventory management. By choosing a simple, consistent system and using high-quality labels, businesses can reduce errors, protect staff, and meet compliance standards.
Label Metrics offers everything you need to get started, from durable label rolls to applicators and specialist adhesives. Get in touch today, either call us on 01482 485005 or email info@labelmetrics.co.uk and find out how we can help improve your labelling system.