Discover the benefits of 2D barcodes
The 2D barcode is here! A shift from 1D to 2D barcodes is underway—but what are the benefits? And how can retailers ensure they maximize the potential of 2D barcode technology? Dive into the topic here!
The traditional barcode has been a great way to quickly and easily store and retrieve product data—and it has been in use for more than 50 years! However, new demands are creating the need for all stakeholders in the supply chain to capture and access more data than the traditional barcode can handle, paving the way for the next generation of barcodes.
Two-dimensional (2D) barcodes are being introduced as a replacement for linear one-dimensional (1D) barcodes, through a retailer-focused initiative led by GS1 called “Sunrise 2027.” The name refers to the goal of having all retail scanners capable of reading 2D barcodes by the end of 2027.
Although this is a large and complex project, the shift will bring significant benefits for everyone in the supply chain—from manufacturers to end users. Here are some of the most prominent advantages of 2D barcodes.
Benefits of 2D barcodes
One barcode for all steps in the supply chain
One of the most important benefits of the new 2D barcodes is the ability to use a single barcode throughout the entire supply chain—scannable by manufacturers, logistics providers, retailers, and consumers alike. Instead of adding or removing specific labels, every party can rely on the same barcode, increasing overall efficiency.
Better inventory management
Since 2D barcodes have the capacity to store more data, it allows retailers to track products more accurately. It also helps streamline stock management. The 2D barcode can carry detailed tracking data such as batch number, expiry date or serial numbers.
Improved recall readiness
Sometimes product items must be recalled, which can be an expensive and time-consuming action for retailer. However, since 2D barcodes can carry more data, companies can pinpoint which specific products to recall, instead of having to waste an entire product line. This is a smart way to reduce shrink, save time, and to cut the costs.
Sustainability and ethical sourcing
With 2D barcodes there are plenty of opportunities to add data about sourcing, certifications and recycling instructions – all in the same barcode. By enabling digital data through GS1 Digital Link, it is possible for companies to provide the information needed to ensure a product is sustainable or ethically sourced.
Enhanced product authentication
In order to combat counterfeit products, product manufacturers can store unique identifiers with the 2D barcode data, making it a powerful tool to ensure a product is authentic. This is valuable especially for industries such as electronics, luxury goods and pharmaceuticals.
Greater brand trust
Brand trust remains an important driver of sales, and by giving customers access to product information, companies can strengthen consumer confidence and build long-term loyalty. The information provided by scanning the 2D barcode can be:
Ingredients
Allergens
Country of origin
Manuals how to use
Recycling information
Are all 2D barcodes the same?
No. There are several types of 2D barcodes—GS1 currently provides standards for five of them, which are used across multiple industries. The most well-known are:
QR Code (GS1 Digital Link URI)
GS1 DataMatrix
There are also other alternatives to GS1-issued barcodes; however, many of these come with significant limitations, especially for e-commerce and retail use.
Why use GS1-issued barcodes?
Since GS1 is the only organization that issues global unique identifiers (GTIN), it prevents barcodes from being accidentally duplicated – and ensures that each product has its own code, whether its an UPC or EAN.
Furthermore, GS1 has established itself as an expert in this field, continuously providing expertise and updates to existing barcode technology. It is therefore a trusted advisor and partner, and many retailers and marketplaces validate barcodes against the GS1 database – ensuring that the barcode is legitimate.
Which 2D barcode should a company use?
Organizations planning to implement 2D barcodes should choose a data carrier and syntax that align with their business needs and the capabilities of their stakeholders. An advice from GS1 is to work closely with partners to ensure a collaborative approach, and to guarantee that the solutions adopted are both effective and compliant.
Want to know more about how to use 2D barcodes to enhance the consumer experience? Get in touch with us to know more.
About GS1
GS1 is a global collaboration where industry leaders, governments, regulators, and other stakeholders work together to create standards-based solutions aimed at addressing and solving the challenges of data exchange.
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