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As the pallet moves into position, the labeling system's arm swings in front of the pallet applying the first label to the front side. Upon completion, the drum re-orients to place the second label to a pre-determined location on the side panel of the pallet. After the pallet passes through, the arm swings back to its original position to receive two more labels and is soon ready to label the next pallet. This labeling system's label placement accuracy is within +/- 1/8" (3.2 mm). The system is very versatile in that it can also be adapted to print-and-apply use by switching out the primary applicator with a Label-Aire printer applicator.