1. A system for applying a label to a spool or reel, the system comprising:
a spooling machine, wherein the spooling machine winds wire on to the spool or reel;
a label application system downstream from the spooling machine; and
a wire tail sensor connected to the label application system, wherein the wire tail sensor detects the presence of a wire tail on the reel or spool and wherein an applied label does not contact the wire tail.