Barcodes have powered logistics workflows for decades.
They’ve been essential to tracking, inventory management, and product movement across global supply chains. But the barcodes on your packages are changing, and so are the expectations around how your systems read and respond to them.
Today, logistics teams are not just deciding between 1D and 2D codes. They’re assessing whether their scanning infrastructure can support modern formats, extract useful data, and integrate in real time with WMS platforms. With the GS1 Sunrise 2027 deadline approaching, this shift is no longer optional, it’s operationally urgent.
This guide explains what logistics teams need to know about barcode formats, where QR codes are already appearing in supply chains, and how to evaluate whether your scanning systems are ready.
What’s the Difference Between 1D and 2D Barcodes?
Barcodes represent information visually, using shapes a machine can interpret. But not all barcodes are created equal.
1D barcodes, like UPC or Code 128, use a series of vertical lines and spaces to encode short alphanumeric strings. These are commonly used for retail SKUs and shelf labeling. Their practical limit is around 8 to 15 characters.
2D barcodes, such as QR codes and Data Matrix, use patterns of dots or squares to store much larger amounts of information, up to 4,000 characters or 7,000 numeric digits. That allows them to carry complex data like batch numbers, product metadata, expiration dates, or links to digital documents.
The more data a code can store, the more operational value it can deliver per scan. This makes 2D barcodes especially powerful in environments where speed, traceability, and error reduction are critical.
Common Barcode Types in Logistics
Different symbologies serve different functions depending on space, scan environment, and data needs. The most common in warehouse and logistics use include:
- UPC, Code 128 (1D): Used for inventory, SKUs, and picking
- QR Code (2D): Returns, product metadata, customer instructions
- Data Matrix (2D): Serialization in pharma, electronics, and automotive
- PDF417 (Stacked): Shipping labels and identification cards
- IMB, POSTNET (Postal): Used by carriers for mail routing and tracking
While many organizations still rely on scanners configured for 1D formats, QR and Data Matrix codes are increasingly appearing across inbound shipments, inventory labels, and outbound packages. This shift has direct implications for hardware, software, and workflows.
Why 2D Codes Are Becoming Standard
Two-dimensional codes are not just a technological upgrade—they are becoming the industry standard.
The GS1 Sunrise 2027 initiative calls for global readiness to accept and process 2D barcodes at retail point-of-sale by 2027. The goal is to standardize how businesses encode and retrieve data, creating interoperability and transparency throughout the supply chain.
2D codes provide a consistent, compact format to hold key product information. They enable better tracking, faster reconciliation, improved recall processes, and easier integration with digital systems. Many manufacturers already embed 2D codes on product packaging to support compliance, traceability, and real-time status updates.
Where QR Codes and 2D Barcodes Are Already in Use
Across industries, 2D codes are being used to speed up processes, reduce manual input, and increase reliability.
In logistics and warehouse operations:
- Labeling at origin: Manufacturers embed GTIN, batch data, and expiry dates into 2D codes printed on packaging.
- Inbound receiving: Staff scan QR or Data Matrix codes to confirm contents and auto-update inventory systems.
- Putaway and storage: Scans verify proper placement and reduce the chance of misfiled inventory.
- Picking and fulfillment: Scanners confirm items are picked correctly, preventing order errors.
- Outbound shipping: Codes are scanned to verify departure, update shipment status, and enable real-time tracking.
- Last-mile delivery: Delivery agents scan upon drop-off to confirm receipt and record delivery in the system.
- Returns: Scanning allows returned items to be logged and reconciled quickly, initiating restocking or refund flows.
In retail and customer-facing settings:
- Shelf labels with QR codes give shoppers access to reviews, product details, or promotions.
- Contactless checkouts and returns use 2D scanning to eliminate manual processing.
- Loyalty programs, digital receipts, and in-store pickups increasingly rely on mobile-scannable codes.
How to Assess Whether Your Systems Are Ready
The ability to handle 2D barcodes is not just a hardware question. It involves configuration, software, and workflow alignment.
Many scanners technically support QR and Data Matrix formats but may require firmware updates or new settings to do so. Others lack the optical imaging capability needed to interpret these codes reliably. Even if the scanner works, your WMS or ERP platform may not be configured to accept and process 2D data.
Here are four areas to evaluate:
Symbology support
Can your current devices read QR, Data Matrix, PDF417, and other formats? Are those features enabled?
Data extraction
Can your system extract additional information—like batch codes, lot numbers, or shipping instructions—from within a 2D scan?
Label complexity
Are your tools prepared to handle real-world label conditions, including crumpled packaging, faded thermal prints, and mixed-format data?
Software integration
Do your scan results flow directly into your inventory or shipping systems, or do you rely on batch syncing and manual reconciliation?
Why Legacy Scanners Often Fall Short
Traditional barcode scanners were built for static workflows—single-use tools that do one job: read a code and pass it along. That worked when data was simple, operations were linear, and labels weren’t carrying multiple data points.
Today’s warehouses need more. They need tools that can handle OCR, process text in addition to codes, integrate with cloud systems, and handle non-standard formats without breaking the flow.
If your team frequently resorts to manual entry, skips scans due to unreadable labels, or experiences delays from syncing issues, you may already be experiencing the limits of older systems.
Final Takeaway
Barcodes are not going away—but the types of barcodes in use, and the systems required to read them, are rapidly changing.
As QR codes and other 2D formats become the default across industries, teams need to ensure that their scanning stack is prepared. That doesn’t always mean buying new hardware. It means understanding what your existing tools are capable of, what your workflows require, and where real operational gaps exist.
GS1 Sunrise 2027 is a clear line in the sand. Teams that wait until the deadline will be forced into rushed upgrades. Teams that assess and adapt now will be positioned for better visibility, higher accuracy, and faster decision-making across the supply chain.
If you're unsure whether your scanners, software, or processes are ready for 2D formats, now is the time to find out.
Want to understand how traditional barcode scanners compare to modern smartphone-based solutions? Barcode Scanners vs Smartphones
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