Wow, everyone seems to have such different experiences. At Jack's daycare they supply the nappies and we have had no problems. I send him in his normal clothes (with 2 spare sets that he rarely needs but occassionally does). He wears his one pair of expensive shoes and they have never gotten lost. The girls are very good at knowing who comes with what and we haven't lost a thing. Also, when they paint and stuff, they supply T-shirts for that (which are washed after every use) so our clothes have never been damaged.
With regard to labels, we bought a label maker that prints labels on plastic for cups etc and also iron-on ones for clothes. This is a bigger one off expensive but seems to pay for itself fairly quickly as we go through a lot of labels. We can of course also use it for other things too - like I sent food to a friend who had a very premmie baby and used the labels to name the containers (so she knew who to give them back to) and also with what was in them.
Good luck. Jack loves day care, I hope your lo does too!
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