NPP: 2D Coding – bringing benefits and opportunities to the supply chain

The traditional barcode is an instantly recognisable feature on retail packaging, providing valuable identification data across supply chains and point of sale operations. However, with regulatory requirements for increased product traceability and consumer demands for increased transparency and information, the limitations of this approach have become increasingly apparent.

With the arrival of GS1 Sunrise 2027 initiative, a time frame has been put on the transition from this traditional barcode, toward 2D coding systems that can hold the complex data and information now required. This non-regulatory initiative aims to ensure that both code types can be scanned at point-of-sale by the end of 2027.

Like a traditional barcode, 2D coding systems, include a GTIN. They can however also hold a significant amount of additional information, such as batch numbers, expiry dates, traceability data and links to digital content: GS1 Sunrise 2027: The Move to 2D Coding.

With many companies making the transition, let’s explore the many advantages and opportunities that 2D coding delivers.

Compliance

Manufacturers, particularly those in highly regulated sectors, such as food, pharmaceuticals and medical devices face greater requirements for regulatory compliance, and on-pack information. 2D coding allows all the relevant details to be included in one code, with real time coding and marking easily achieved

Traceability

The inclusion of details such as batch and lot numbers, and product skus, ensures a product can be accurately tracked from manufacture, throughout distribution and to point of sale, until it ultimately reaches the consumer. This increased visibility along the supply chain also ensures faster and easier investigation of quality issues. Should an issue arise this level of detail ensures the product or batch in question can be easily identified for action or recall.

Operational efficiency

In addition to their ability to carry more data and information, 2D coding offers several operational benefits over the use of a traditional barcode.

• Durability

2D codes such as QR Codes and Data Matrix codes incorporate error-correction technology that allows them to remain readable even when partially damaged. This ensures that data is still available when packaging is scratched or a label is partially torn, or when the packaging has been exposed to cold rooms, condensation or dusty environments.

• Reduced labelling complexity

2D coding reduces marking and labelling complexity with streamlined automated processes. With one code holding such a large quantity and variety of data, the need for complex markings and codes is reduced, a particular benefit for smaller packs with limited print space available.

Smarter inventory management and shelf-life control

Detailed data ensures better stock visibility and accuracy throughout the supply chain with direct digital links providing fast and efficient access to databases and logistics platforms

For products with expiry dates, such as food and pharmaceuticals, 2D codes can provide instant access to date and batch information. This helps businesses improve stock rotation, minimise waste and ensure older stock is used first.

PPWR

The Packaging and Packaging Waste Regulations will require increased sustainability information on packaging from August 2028, with details on material composition, recycled content and recycling instructions required. 2D coding is a simple and straightforward method of providing links to this data.

Even before we reach this deadline, in practical terms a simple 2D code can replace multiple labels on packaging, helping businesses to support packaging optimisation objectives and facilitate recycling.

Strong consumer engagement and trust

With just the use of a smart phone, 2D coding allows businesses to communicate directly with consumers. Detailed information from allergen and ingredient details to usage instructions are now available to customers with a quick scan of their phone.

With a greater awareness and interest surrounding product quality, origin, and sustainability, companies can now build trust and transparency in a very effective and direct way that was not previously possible.

Direct links to digital content offers an enhanced customer experience. Engaging marketing and promotional materials, or product guides and videos can all add value, and increase and strengthen customer/brand relationships.

Making the move to 2D coding

With the advantages and opportunities offered by 2D coding, it is clear to see why so many within industry are making the move from traditional linear barcodes to 2D coding solutions.

With extensive industry experience, and our comprehensive range of coding and marking systems, NPP are on hand to help you make the most of the opportunities available.

Get in touch with the team today.

This article was originally published by NPP.