2D barcodes recognised for innovation at AUSPACK

GS1’s work on 2D barcode technology was put in the spotlight at the 2022 AUSPACK packaging expo in Melbourne last month after taking out the top prize for innovation in the packaging sector.

While still an emerging technology with many more benefits yet to be uncovered, 2D barcoding has already become a major talking point in the industry as its future potential continues to grow with continued research.

GS1 retail account director, Michael Davis, sat down with Food & Beverage Industry News after the awards night to speak more about what 2D barcoding technology can, and will, mean for the future of the industry.

“Firstly, we need to acknowledge our industry partners who we went to AUSPACK with,” said Davis.

“We were here to support them and the industry through the adoption and evolution towards 2d barcoding.

“The reality is, as an organisation we can’t do any of this with our industry partners. There are global standards that are adopted by the industry so without being engaged with all of them it doesn’t achieve the purpose of what we are hoping to achieve.”

Davis said the company was hopeful of making the finals of the awards while winning was a huge positive for GS1 as it continues to drive 2D technology into the industry.

“The team were really happy with the outcome and the recognition,” said Davis.

Davis said the traceability issues that are being solved by 2D barcode technology was a important aspect of the new barcoding that will strengthen position and support brand owners and help mitigate traceability issues that lead to a host of supply chain and production risks.

“The supply chain is one are but right through to the point of sale which means the brand owners are getting the full benefit. It’s critical to get this support,” he continued.

“We have Woolworths on board and other retailers are in the investigation phase of what’s required to adopt 2d barcoding.

“Australia, as a market, has the opportunity to become a world leader and you can’t do that without brand owners, manufacturers and retailers working together with one single sourced and streamlined solution.”

The slow realisation around the benefits provided by 2D barcodes is now reaching a point where companies are increasingly interested in learning more about the technology as its adopted more widely across the food and beverage manufacturing industry.

“It really is a journey. We’ve had a liner barcode for 50 years and everyone accepted that as the solution but now we have 2d which shows the value of what can be achieved,” said Davis.

“It’s early days, if you look at a global level in the spectrum of the industry, we are only really at ground zero.”

GS1 has a 2027 ‘sunrise’ date for the wider adoption of the technology, which will also give the company a chance to further study the full capabilities of 2D barcoding, which has already proven its worth as the APPMA award demonstrates.

“That sunrise date is creeping up very quickly though,” said Davis.

“Woolworths and their partners want 2029. It’s a long journey which is good because they are discovering new potential for the technology every day.”

As mentioned before, GS1 said the importance of industry partners, such as Woolworths, taking up and piloting the adoption of 2D technology was an invaluable part of the process.

“That is part of a benefit of partnering with industry companies because their business partners are aligned to us,” said Davis.

“Our role is to support industry and utilising standards for adoption.”

The journey is a long one in part because of the multi-step process of adoption and integration, being both a hardware and software solution.

“You work through the requirements, but the critical piece is the productivity,” said Davis.

“What we are seeing with retail partners is understanding those productivity gains or impacts because this is a game of inches. That’s a critical piece.

“Once they have adopted and worked out the solution it’s about how we get those gains through production lines and supply chains.”

One aspect which helps the adoption and integration process is the Digital Link system provided by GS1.

“The future benefit is understanding the whole journey of the supply chain, having everything aligned so people know what stock or farm was used, the ingredients, everything through the journey. And moving forward, it will also apply to forecasting,” said Davis.

And as consumers become more educated around the use of 2D barcodes, coupled with the changing trends in consumer diets and brand loyalties, companies who ignore the shift towards using 2D barcodes run the risk of missing out on the benefits.

“I think the risk is if you don’t move towards 2D because consumers have a thirst which is being driven by technology and the simplicity of things. The risk is in not adopting, versus the benefit to adopt,” said Davis.

“The health conscious, the nutritional elements, all the allergens. Consumers are far more informed now and instead of wanting to think about codes on packaging they can now start to truly understand if each product is right for their needs.”

David said the use of QR codes during the COVID-19 pandemic had in some ways helped reinforce the advantages of 2D barcode technology.

“The consumers are driving the demand for 2D barcoding and they are speaking with their feet and making decision son brand and product selection based on information provided,” he said.

“Therefore, the sellers, whether online or in store, are responding to that and the flow down is the brands and manufacturers need to be able to represent that shift in trend.”

One of the most obvious, yet impactful, benefits at the manufacturing level is being able to create greater security for stock that has left the site for transport to a supply partner.

Utilising 2D technology allows for much greater traceability so that producers can track the product along every step of the supply chain through batches, production dates and days.

“It protects the brand and consumers in a simpler way,” said Davis.

“Ultimately it’s around continued evolution of single source, and this is a medium for that but ultimately it has been corrected at the master data level.”

Davis has also witnessed first-hand that the most common ‘barrier to entry’ into 2D barcoding is mostly understanding of the technology.

“The barrier has been understanding the need and the why but once people understand they start to look into it and contact GS1,” he added.

“Even with our retail partners they don’t get it the first time, they know it is a good idea, but when they dig a little deeper and see the benefits it creates a light bulb moment, no matter where you are in the supply chain.

“They all have different value propositions as to what the benefit will be.”

This is one of the main parts of the Digital Link from GS1, being able to track the journey can find where blockages or pain points are that can create product issues. The current Australian cold chain is a fine example of this.

“There’s a need for that process but again, the cold chain if fragmented so the need for industry alignment is important and 2d is a common-sense adoption for that solution before applying the applicable standard,” said Davis.

“If we can keep moving the message and the dial forward to the 2027 date and enhance the adoption through the entire supply chain process it will become the norm, there is no doubt about that.”

Davis, and GS1, are encouraging food and beverage manufacturers and producers who are thinking about looking into 2D barcoding to do so quickly, to ensure the best possible outcome in the future.

“It’s very much a now discussion because it isn’t something you can turn on at night, there are things like system integration, understanding manufacturing and printer capability, alignment with retail partners,” said Davis.

“It’s a time piece and if you fall behind you will stay behind until such behind as you are ready and capable of adopting the technology.”

Small and middle enterprises are also being encouraged to adopt 2D barcodes because of the added loyalty those food producers can receive from consumers.

“Your SME’s are mostly built on loyalty and trust in their brand and this will enhance their value proposition especially with consumers understanding the technology more,” said Davis.

“A lot of these smaller companies, their products aren’t liked, they are loved, so if they can tap into emotive pieces and then get the benefits through it then it’s a good thing for their future.”

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