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2D barcodes: Revolutionizing the POS beep

person holding bag of bread and scanning 2d code with phone for additional information
PHOTO COURTESY OF KWIK LOK
BY: Joanie Spencer

Joanie Spencer

LAS VEGAS — It’s on the horizon. Sunrise 2027 — the initiative from barcode governing body GS1 — will bring a revolution to the point of sale (POS) at retail outlets around the world.

Nearly 50 years since the first UPC was scanned, GS1 will standardize the voluntary use of 2D barcode technology, further enhancing not only how consumers and retailers interact with CPG products, but also forever changing the role supply chain plays in every finished product.

“What do standards really allow us to do?” said Chris Latta, director of business development for Kwik Lok, a global manufacturer of bag closures and equipment, during an education session at the International Baking Industry Exposition, held Sept. 13-17 in Las Vegas. “First and foremost, it’s about the beep. We want to make sure when our products reach stores, we reduce friction and ensure the product scans and consumers will come back and repurchase those products.”

While barcodes have historically measured the life of a product at the beginning and end of the supply chain, modern traceability needs are demanding more access to information at nearly every point in the chain.

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Translating transparency into trust

“That’s what technology is helping us strive to do today,” Latta said. “The 2D barcode is the next step, and it will allow us to increase transparency and consumer trust. That’s something a barcode, in the past, has never allowed us to do. It was only about calling up the price and moving a consumer through the queue.”

2D barcodes already provide interactivity before the product even gets to the beep. In fact, information that can be accessed right at the shelf might determine whether the product is purchased at all. As Sunrise 2027 approaches, virtually all barcodes will transition from the traditional 1D to the 2D barcode that works more like a technologically advanced data set than a purchase tracking tool.

“When we look at a 2D barcode, we’re looking at the ability to have several thousand characters in one data stream,” Latta said. “That gives us the ability to activate traceability, integrate marketing and enhance inventory overall.”

By using technology available through a common QR code scannable from any smartphone camera, GS1 has been able to embed that code with its traceability standards on top of the original infrastructure. It has created a consumer touchpoint that can be used at any point in the supply chain and directed to a specific piece of content, information or direction, such as how to recycle or what to do in case of a recall.

GS1 calls it “a single source of truth,” according to Latta.

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“The reality is, everybody wants information,” he said. “If we can share that information in a seamless manner, scanning becomes a normal, everyday activity that gives people access to information they’ve never had access to before.”

In this information era, transparency translates to loyalty. Latta outlined how Kwik Lok is using 2D barcode technology to create that loyalty for bakery brands.

“If people can look at your product and know it’s healthy and safe,” he said, “there’s a good chance they’re going to pick your product over the other brand.”

It’s also an opportunity to mitigate — or even prevent — risk in the event of a recall. The technology can reveal recall information on how to dispose of a product or even ensure if a product is safe for use based on the lot number, possibly before store associates have been informed or press announcements have been issued.

“Data moves faster than people,” Latta said. “How we make decisions in today’s fast-paced world requires data, and tools like this are key.”

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Creating a seamless transition

It’s no secret that barcodes aren’t perfect. Geometry comes into play, and any bend, wrinkle or tear makes scanning challenging. With the transition to 2D — knowing that people generally fear change — a seamless experience becomes more critical than ever. To address this, Kwik Lok is working on closure technology with a stable substrate to house barcodes right on the label.

“During the transition period into Sunrise 2027, think about the number of POS stations around the world interacting with every item that uses a barcode today,” Latta said. “We’re talking about billions of scan points with a long period between when a retailer is truly ready for 2D and when they’re not. We need to be able to present the 1D and 2D barcodes side-by-side to allow for easy scanning at the POS.”

Labeling with closures is something Kwik Lok has been providing its customers for years, whether for promotional campaigns, nutritional data or other information through messaging or traditional QR codes. This practice puts the company in a prime position to add 2D barcodes to its stable substrate and minimize the possibility for frustration or confusion at the POS beep, not to mention provide easy access to product information with one scan.

Kwik Lok not only supplies closure labels to safely house the codes, but it also offers the equipment to deliver it to the product’s package. The company is currently driving proof of concept for future-ready labels for the 2D transition coming in January 2027, including working with third parties to track and manage the data and consumer interaction. That could be game-changing, not only for working with retailers ready to require 2D barcodes at that time but also for creating new ways to establish trust and loyalty with consumers in real time.

“We’re looking at one code that allows a product to interact with the POS station, but it also unlocks limitless possibilities for other types of interaction with consumers,” Latta said. “We like to say it’s one label, total compliance and real-time engagement.”

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