We live in a world that is continuously advancing. Every year brings with it new opportunities, transformations, and challenges. Groundbreaking innovations reshape how industries, from commerce to entertainment, operate and ultimately how they impact end consumers. As we talk about advancements, the global supply chain is already embracing the next-generation solutions for a more modern and advanced trade. This blog will provide you with insights into the next generation of barcodes being adopted by supply chain stakeholders. By the end of this blog, you will have a clear understanding of how next-gen barcodes are improving process efficiency, traceability, and product data management, creating a smarter and more connected global supply chain.
Barcodes were introduced to the world in 1973 by industry leaders in the U.S. A pack of Wrigley’s gum was the first product that was scanned using barcode technology at a Marsh Supermarket in Ohio on June 26, 1974. It has been over 50 years since the first barcode scan. Today, every product being sold, whether domestically or internationally, online or offline, carries a barcode. These black-and-white parallel lines have ushered in a new era of trade, empowering businesses and consumers with greater transparency and control.
As the calendar flips, the industry is moving toward adopting a more advanced barcode type, namely, two-dimensional (2D) barcodes - the next-generation of barcode technology. With rising modern consumers’ expectations, the marketplaces are not limited to unique product identification via barcodes. Providing accessibility to detailed product information has now become critical as consumers shift to making informed purchase decisions. The strict industry regulations and global compliance requirements for improved information transparency have further strengthened the consumer front. This transition to 2D barcodes has become a necessity for businesses more than an option, as we progress. Let’s understand what makes 2D barcodes more practical and advanced in the next section.
2D barcodes are graphical patterns composed of squares, dots, hexagons and rectangles, forming a matrix-like structure. They serve critical functions such as enabling the circulation of detailed product data, facilitating traceability, increasing transparency, and more. Currently, there are two types of 2D barcodes: QR codes and GS1 DataMatrix. QR codes can hold up to 4,296 alphanumeric characters, whereas GS1 DataMatrix, used in the healthcare sector, can encode up to 2,335 alphanumeric characters. Here are some key benefits of 2D barcodes:
Detailed Product Information - A 2D barcode can encode detailed product information. This information includes the batch/lot number, manufacturing details, expiry date, nutritional information, regulatory information, and so on.
URL Encoding - Businesses can embed URLs in 2D barcodes to provide more information to their consumers. URLs of product pages or the brand’s website pages are embedded to provide accessibility to product information, video tutorials, customer feedback, or even feedback forms.
Scannable via Smartphones - Stakeholders do not necessarily need scanners to scan 2D barcodes; they can also scan using a smartphone and access accurate information.
Compact Size - 2D barcodes store rich data while taking up minimal space on the product label, which leaves better scope for marketing or other information. Also, 2D barcodes are perfect for smaller products or products with space constraints.
Omnidirectional Scanning - 2D barcodes can be scanned from any angle and do not require precise reading orientation. This makes them easier to scan when placed at odd angles or even if slightly damaged.
Resilience to Damage - The GS1 DataMatrix has a Reed-Solomon error-correction algorithm that allows people to scan and access information from it even when it is partially damaged, obscured, or dirty.
Increased Visibility - Consumers or stakeholders can unlock the complete journey of products, from raw material sourcing to production.
Industries are rapidly adopting 2D barcodes to provide detailed and authentic information with just a simple scan. The healthcare sector, particularly the pharmaceuticals, is one area where 2D barcodes are making a major impact. With the increasing complexity of global supply chains, accurate and transparent information on medicines has become more critical than ever. As a result, many top pharmaceutical companies, including the 300 leading drug brands, have integrated QR codes into their packaging.
For consumers, this means feeling more confident in the medications they take, knowing they have access to detailed, authentic, and up-to-date information, accessible via a simple smartphone scan through the Smart Consumer app. The ability to verify the safety, origin, and efficacy of a drug empowers customers, making them feel safer and helping them make informed decisions.
The next-generation barcodes are two-dimensional (2D) barcodes. These barcodes are composed of squares, dots, hexagons, and rectangles, and can contain extensive product information.
Currently, both 1D barcodes and 2D or next-generation barcodes are adopted. QR codes at the point-of-sale and GS1 DataMatrix barcodes at the point-of-care are the next-generation barcodes that are being used.
2D or next-generation barcodes have more data storage capability, can be scanned via smartphones, encode a digital link or URL to a website or product page, and are compact. On the other hand, 1D barcodes have limited data storage capacity.
With the industries becoming more advanced, the transition to 2D barcodes has become more important than ever. Evolving customer preferences and requirements are reshaping how industries must operate, and businesses need to realise this quickly.
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