Abstract: An automatic label printing and application system applies a custom label at a dynamically determined location on articles being moved along a conveyer. The system includes a bar code scanning system, preferably a group of bar code scanners each arranged to read at an assigned elevation above the conveyer belt. This configuration allows the system controller to generally determine the vertical height of pre-printed bar code on the article. The system uses photoelectric sensors to detect articles being moved along the conveyer, as well as an encoder and bar code scanning data to determine the horizontal position of the pre-printed bar code on the surface of the article. In this manner, the system dynamically determines both the vertical and horizontal position of the pre-printed bar code on the surface of the article.