Here Comes the Sun: Technology for Better Barcodes is on the Horizon with Sunrise 2027

GS1 is a not-for-profit entity featuring more than 300,000 global members and dedicated to improving operations by establishing standards to link physical and digital supply chains. The organization’s most recognizable efforts relate to Universal Product Code (UPC) barcodes used for inventory management, checking out, and more.

The standard barcode format in use today, known as one-dimensional (1D) barcode, is largely limited in utility and holds only basic identifying information. The GS1 has a plan to expand the utility of 1D barcodes with an initiative that it calls Sunrise 2027.

What is Sunrise 2027?

In response to growing demands for additional product traceability, authentication, and information, GS1 has designed two-dimension (2D) barcodes that offer much more detail regarding a product and can be scanned on a shopper’s smartphone. The additional data in 2D barcodes can include sourcing information, details on allergens, nutritional information, and more.

The applications enabled by the 2D barcode are vast. With more detailed information accompanying each product, 2D barcodes can better inform consumers about the products they are considering and have utility in new environments. For example, healthcare facilities can scan barcodes on medicinal products prior to their administration, helping identify potential allergens or even adverse interactions. GS1 anticipates that 2D barcodes will enable:

• Improvements to inventory management processes;
• More effective and efficient product recall practices;
• A greater degree of consumer discernment with respect to sustainability and sourcing;
• Easy authentication of products; and
• Greater trust in brands.

Benefits of Sunrise 2027

According to a GS1 survey, 77% of consumers say access to product information is important when making a purchase. Access to information isn’t just nice to have either, 79% of consumers reported that they are more likely to purchase products with the additional product information they’re most interested in. Further, they found that consumers are most likely to consider nutritional details (53%), materials and ingredients (37%), safety information (36%), country of origin (32%), allergens (27%), and recall alerts (20%).

Beyond the competitive advantage that businesses can unlock through product information transparency, adoption of the 2D barcode system could even increase the value of individual items. According to GS1, 62% of consumers reported that they would be willing to pay a higher price for products with detailed information.

The benefits of 2D barcodes aren’t just for consumers. The 2D barcode represents a shift in global commerce and the modernization of a pivotal technology that virtually every business relies on. Businesses that adapt 2D barcodes can anticipate improvements to:

• Operational efficiency, including faster checkouts, fewer errors, and better visibility into inventory;
• Data accuracy with product details that are more reliable and enable better forecasting and reporting;
• Traceability with improved insights to support more effective recalls;
• Strategic decision making with real-time insights into operations; and
• Customer loyalty with more comprehensive product transparency inspiring greater trust.

Preparation

Consumers will be able to scan 2D barcodes with their smartphones and use GS1 Digital Link to access product specific information. Organizations interested in providing this detail to their customers need to ensure they have:

Technological Readiness

• POS systems, scanners and databases must be able to support 2D barcode scanning and data parsing.
• ERP, WMS, and inventory tools need to integrate seamlessly and be able to handle new data inputs.
• To maximize the utility and value of 2D barcodes, systems must process and exchange data in real-time.

Organizational Readiness

• Staff must be trained to scan, interpret, and make use of the data 2D barcodes provide.
• Business processes from inventory management to customer engagement should be adapted to account for the availability of enhanced data.

Compliance and Standards

• Businesses must adhere to industry standards to support interoperability.
• Traceability mandates, data privacy regulations, and serialization requirements must be understood and followed.

Businesses should prepare for Sunrise 2027 by evaluating their current POS, ERP, and inventory systems against future requirements. Partnering with industry groups, GS1 working groups, and technology advisors can help organizations be proactive and thorough in their efforts.

For more on 2D barcodes and the Sunrise 2027 initiative, watch our exclusive webinar How 2D Barcodes Could Revolutionize Retail hosted by The Food Institute and featuring industry leaders from CBIZ. If you have any questions about your inventory management practices or the advantages of 2D barcodes, contact CBIZ today.