Barcodes have been around for 50 years now, and it has changed the way customers shop and businesses operate. Today, more than 10 billion barcodes are scanned a day, which is more than the number of Google Searches, says Renaud de Barbuat, the President and CEO of GS1. GS1 is a global body that manages standardization in packaging trade items.
The technology has witnessed rapid growth and adoption in businesses, led by retailers in the USA, Europe, and the Asia Pacific region. The first barcode was scanned on Wrigley’s chewing gum in a retail supermarket in Troy, Ohio, USA. Barcodes offer faster checkouts, reducing store queues and enhancing customer shopping experience, as well as better inventory control for retailers.
The introduction of QR Codes
Come 1994, the Japanese engineer Masahiro Hara created the QR Code, a 2-D barcode designed to store data vertically and horizontally, unlike barcodes with actual bars. The design of the QR Code, with black dots over a white square background was inspired by popular board game “Go”.
These new barcodes are far more efficient and can store a wealth of information than previously possible (with UPC barcodes). At present, QR Codes can be easily created, allowing businesses to put product names, descriptions, item codes, batch no., expiry dates, allergens in case of food, medicine, and cosmetic products, recipes, how to use tips, etc.
A 2D barcode can store text, URLs, alphanumerical data, images, PDF documents, etc. To give you an idea of the amount of text it can store, you can write the entire Abraham Lincoln's Gettysburg Address, delivered on November 19, 1863, in a QR Code.
GS1’s Plan to Combine QR Code and UPC Barcode on Product Packaging
With late 2027 as the target for full implementation, GS1, the global body of standards, is on the verge of creating a next-generation barcode. This innovative barcode comprises the essence of both a QR (Quick Response) code and a UPC barcode hidden inside the QR code. This barcode involves the capability of a QR code within the efficiency of a UPC barcode. According to what Renaud stated, one scan can lead to unlimited possibilities.
With the introduction of new QR codes, retailers will be able to scan the QR code to keep track of stock levels and use-by dates, and consumers will also benefit from added information about any trade item, its ingredients, usage, and recycling procedures.
The change becomes evident when large companies support the innovation. As other companies and industries follow the norms set by large giants, it creates an industry standard among respected domains. For context, GS1 has already convinced a few retail giants to support the migration to QR codes. Mega retail giants like Carrefour, L’Oreal, PepsiCo, Nestle, and Lidl have signed a joint statement supporting the migration to new QR codes.
Why Businesses Are Switching to QR Codes from UPC Barcodes?
Following the success of linear barcodes like the UPC, the advent of matrix barcodes marked another significant milestone in the evolution of barcode technology. Matrix barcodes, such as GS1 QR codes, revolutionized the way information could be stored and retrieved.
In a short period of two months, with the support of GS1 and other solution providers, they implemented the technology, and the benefit for them was better inventory management and a reduction in waste by 50%.
Another important implementation that indicates the adoption of new technology is the feature to edit the QR code data it contains when needed. For example, manufacturers can implement the GS1 barcode/QR code during their next regular product redesign, and by hosting all the information online and making it accessible through the QR, it can be updated at any time without the need to reprint a product’s packaging.
Having more information is never a negative prospect as one may be focused on what contents are used for manufacturing a preferable product. Also, ample information leads to smarter decisions in the product packaging domain. This is what the new technology is going to serve the customers with and is preparing to make a long-lasting effect on packaging companies.
Another reason to choose QR Codes over 1D barcodes is sustainability. Sustainability becomes an important aspect when creating a product packaging design and leads the way for future adoption of the product relating to its capability to be sustainable in nature. For instance, a water company in South Korea completely eliminated plastic labels from their bottles by adding a QR code to the bottle cap.
Benefits Offered by GS1’s New Barcodes
Here are a few benefits offered by GS1’s new barcodes;
1. GS1 Barcodes in Supply Chain Management
GS1’s QR Code-barcode solution contributes to the proliferation of the global commerce ecosystem by standardizing barcode use and transcending borders and currencies to enable members of the supply chain to interact on a worldwide scale for the benefit of consumers everywhere. They allow companies to maintain order and avoid chaos in supply chain workflows, making processes quicker and more efficient.
2. Barcodes Improve Efficiency and Visibility
GS1 Barcodes improve the efficiency, safety, speed, and visibility of supply chains across physical and digital channels, playing a crucial role in the retail industry and beyond.
GS1 standards ensure that key processes run smoothly in industries like retail and product packaging, where they lie at the heart of efficient just-in-time systems, allowing retailers to track products at every stage of the supply chain.
3. Transparency in the Process
Transparency is crucial in logistics and order fulfilment as customers rely on brands that show them all the steps or processes that are taken during a product shipment. Using QR codes, businesses and product packaging can provide transparent information to consumers about product origins, manufacturing processes, and supply chain pathways. The transparency can enhance brand trust and customer satisfaction.
4. GS1 QR code in Healthcare Efficiency
The QR code that is revolutionizing payment procedures worldwide is now facing development in its existing functionality. The advancement in the GS1 QR code now enables efficiency in logistics in hospital facilities. Also, these QR codes impart unmatched safety and traceability to each patient as one can monitor which medicine is given to which patient at what time and by whom.
Barcode-Based Solutions for Businesses
The 1970s witnessed a significant advancement in barcode systems. It is because it saw a reduction in prices and the miniaturization of microprocessors and lasers made barcode scanning systems more affordable and practical.
However, the latest advancement of technology, which is IoT (Internet of Things), has introduced new opportunities for barcode technology to integrate with other smart devices and systems, enabling real-time tracking and monitoring of goods throughout the supply chain.
A few barcode-based solutions are elaborated here;
1. Barcode-based Asset Tracking Solution
Despite the presence of new technology like RFID and QR codes, barcode-based asset tracking solutions are still in demand because of their low initial cost and accuracy in the workforce. The asset-tracking solution powered by UPC barcodes offers best-in-segment efficiency in tracking assets in a large asset-handling firm.
2. Cold Chain Monitoring Using Barcodes
In a cold chain environment, fresh veggies and perishable products like milk and fruits need to be delivered to their destination while also maintaining the product’s health and quality during the shipment. Barcodes like UPC barcodes offer accuracy at different stages of product scanning while providing insights into temperature at various stages of shipment.
3. facilitating POS Systems
At Point-of-Sale systems or billing desks, barcodes are scanned for gathering product information like name, quantity, price, manufacturing date, etc. The process is necessary so as to generate a receipt of customer’s purchase. With barcodes, PoS work seamlessly, increasing revenue and saving significant cost.
QR Code-based Solutions
In recent years, QR codes have experienced a resurgence in popularity, driven by advancements in smartphone technology and the growing trend towards contactless transactions. With the widespread adoption of smartphones equipped with high-resolution cameras and QR code scanning capabilities, QR codes have become ubiquitous in everyday life.
A few solutions based on QR codes apart from transactions are described here;
1. Recording Feedback Using a QR code
QR codes can be used efficiently for recording feedback after a successful event. The process involves providing a QR code that redirects to a form where some questions are asked regarding the feedback of the program. This process extracts useful insights and important keynotes that can be utilized to improve the overall process.
2. Event Ticketing
Event ticketing QR codes are digitally encoded representations of event information used for quick and efficient access control. They typically contain details like event name, date, time, location, and unique ticket identifiers. Attendees present the QR code on their mobile devices or printed tickets, which are then scanned at the event entrance for verification. This approach supports eco-friendly practices by saving paper for printing.
3. Digital business card
QR code business cards incorporate a scannable QR code that directs recipients to a specific website, portfolio, or contact information. The design of the cards features a sleek layout with a QR code as the focal point.
The benefits of QR code cards include the ability to provide instant access to additional information, such as product catalogs, social media profiles, or event registrations, making them an effective marketing tool.
To summarize, the evolution of barcode over the decades is driven by industry demand where barcode brought efficiency in item-level tagging, inventory visibility, and product identification. The UPC barcodes (1D barcodes) preferred by industries such as retail and supply chain since 1974 have now evolved into QR Code where the universal product code can be used in the QR Code, along with a wealth of other information about the product, its manufacturing, expiry, use, etc.
The new plan of GS1 to use QR codes and UPC barcode in combination is revolutionary as it helps retailers and logistics firms in great many ways. Since businesses are already familiar with 1D barcodes, switching to QR Codes won’t be a hassle.
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