The Value of a 2D Barcode Begins Before the Checkout Lane

Most discussion around 2D barcodes has focused on retail checkout and the GS1 Sunrise 2027 initiative. Warehouses and distribution centers may see the financial return much earlier.

Research conducted by VDC Research and commissioned by GS1 US found that 2D barcode workflows could reduce warehouse operating costs by more than 60%. The modeled savings exceeded $500,000 per facility each year. Those savings came from practical improvements: fewer failed scans, less relabeling and fewer shipping errors.

The study also shows how quickly small problems add up. Organizations using primarily 1D barcodes reported a 7% first-pass scan failure rate and a 1.5% relabeling rate. VDC estimated that rescanning, relabeling, added labor and shipment errors could cost a facility more than $800,000 annually.

A traditional 1D barcode commonly identifies the product through its Global Trade Item Number, or GTIN. Other information may need to be pulled from a database or carried in additional symbols. A GS1 DataMatrix or QR Code powered by GS1 standards can place the GTIN, lot number, expiration date and serial number in one compact symbol.

That additional data has value throughout the warehouse. At receiving, one scan can identify the product and capture its lot or expiration information. During storage and picking, the same data can help workers select the correct inventory and follow first-expired, first-out procedures. At shipping, the code can be checked against the order before the product leaves the facility. If a recall occurs, lot-level identification gives the company a much narrower group of products to locate.

None of those benefits are guaranteed simply because a 2D barcode appears on the label or package.

The code must remain readable after printing, converting, handling and transportation. Module size, contrast, quiet zones, ink adhesion and substrate behavior all affect scan performance. Corrugated material, coated labels and flexible packaging each present different printing conditions. A code that looks acceptable to the eye may still fail when it reaches a high-speed warehouse scanner.

Variable data accuracy matters just as much as image quality. A perfectly readable code containing the wrong lot number is still a production failure. The data sent to the printer must match the intended product, and the printed symbol should be inspected before it enters distribution.

This is where inline printing and inspection earn their place on the production line. An industrial inkjet system can print each unique code as the label, package or corrugated sheet moves through production. A camera can then confirm that the code is present, readable and associated with the correct record. Problems can be identified while the product is still on the line, when correcting them costs far less.

The warehouse savings identified by GS1 US begin with a dependable mark. If the variable data is accurate and the barcode scans the first time, every operation that follows has better information to work with.

Sources

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