Warehouse management is facing a groundbreaking change: product identification with GTIN and the GS1 Data Matrix Code

Warehouse management is facing a groundbreaking transformation: Starting in 2027, the global GS1 organization, with its "Sunrise 2027" initiative, will set new standards to increase efficiency and transparency across the entire supply chain. A key element of this development is the introduction and increased use of 2D barcodes such as QR codes and DataMatrix codes, which will contain, among other things, the Global Trade Item Number (GTIN). This GTIN remains essential for unique product identification but will be supplemented by additional product information. This transition will bring comprehensive improvements that will impact processes, automation, data exchange, and the long-term competitiveness of companies. The following sections explain in detail the advantages these 2D codes offer for warehouse management, how the GTIN will continue to play a central role, what the expanded product data storage entails, and why an early transition is so important for companies.

The importance of precise data collection

“The future of warehouse management lies in precise and secure data capture,” say many experts. In this context, GS1, one of the leading global organizations for standardized identification and communication solutions in the supply chain, has set the course for 2027. The goal is to enable fast and reliable product identification across the entire value chain. Existing 1D barcodes are no longer sufficient for this, as they often only represent the GTIN. While this standard has significantly contributed to revolutionizing trade and logistics worldwide, the demands on modern warehouse management and inventory control systems have increased enormously. Companies now require additional information such as batch numbers, expiration dates, and detailed product specifications to accelerate warehouse processes, facilitate recalls, and maintain a complete overview of all inventory.

The advantages of 2D barcodes

This is where 2D barcodes come in, which, with the help of QR codes and DataMatrix codes, can store significantly more information. "Compared to traditional 1D barcodes, 2D codes can represent up to 7,000 characters," according to many specialist publications. This considerable data density is a crucial advantage for integrating, for example, precise serial numbers, batch information, or production details into a single code.

This offers several advantages for warehouse management: The simple capture of this information via scanners or mobile devices allows for significantly more precise inventory control. This means that goods can be received, located, and dispatched more quickly. Every movement of a product leaves a digital footprint that is reflected in the warehouse management software in real time. This allows stockouts to be reduced and potential bottlenecks to be identified early.

“Extended Supply Chain Management” as a key component

Another key aspect of the GS1 Sunrise 2027 initiative is so-called "Extended Supply Chain Management." This includes not only data on inventory and goods movements, but also information on the product lifecycle. For example, 2D codes can be used to ensure that perishable goods are removed from storage and shipped well before their expiration date. In practice, this is achieved by the software generating a targeted warning as soon as the expiration date approaches.

This not only reduces food waste but can also make a significant contribution to customer satisfaction by ensuring the product's quality and freshness. The same principle applies to products requiring specific storage conditions: as soon as the product information indicates, for example, that a maximum storage temperature must not be exceeded, the system can specifically monitor whether the prescribed conditions are being met in the warehouse.

The central role of the GTIN in the new era

"Even with 2D codes, the Global Trade Item Number (GTIN) remains the central key for identifying each individual item," emphasize GS1 representatives. Despite the wealth of additional information, the GTIN continues to be the foundation for uniquely identifying the product. Combined with the expanded data, this creates a kind of digital profile of the item, which can be accessed at every relevant step in the supply chain.

This is precisely where the aspect of traceability becomes important: Should a recall or quality issue arise, the stored batch or serial numbers allow each affected item to be quickly identified and removed from circulation. This saves time and money and, above all, protects consumer trust in the brand.

Challenges and requirements for companies

Many companies are wondering how complex the transition will be. Since GS1 is a global organization, it's a process that all stakeholders along the value chain must support – from manufacturers and logistics providers to retailers.

"The transition primarily affects the technology and software used to print, capture, and process barcodes," explain industry insiders. Some warehouse management systems are already up-to-date and can easily read 2D codes. Other systems need to be adapted to the additional data fields. Furthermore, it may be necessary to purchase new printers or scanners that meet the higher requirements for resolution and reading speed.

Internal processes and the training concept for employees also play a central role: Only if all those involved understand the potential of the new standards and are able to use the technology correctly can the desired efficiency gains unfold.

Improvement of automation and networking

A key benefit lies in the improved automation and networking of different systems. By enabling warehouse management systems, enterprise resource planning (ERP) solutions, and external partners to communicate with each other via standardized GS1 interfaces, an information flow is created that connects all links in the chain.

"Automated queries regarding inventory levels and availability will fundamentally change the daily work routine in logistics," is how visionaries in the industry put it. This also means that, for example, when a delivery arrives, it is automatically checked whether the goods actually correspond to the information on the delivery note. Discrepancies can be detected and reported immediately. This not only saves time but also reduces the error rate.

Advantages of increased transparency through 2D codes

In addition to direct improvements in inventory management, increased transparency for customers is a crucial factor. More and more consumers want information about the origin, manufacturing, and composition of products. If this data is stored in the 2D code, it can be verified at any point in the supply chain. In some cases, there is even consideration of making this information directly accessible on the product itself. However, this requires that data protection is maintained and that there is a clear separation between internal company data and information visible to external parties. "Transparency must not come at the expense of a company's know-how," is a frequently voiced objection. For this reason, 2D codes are generally structured so that only certain data segments are freely readable, while other areas can remain password-protected or encrypted.

Challenges in the introduction of 2D codes

Despite the advantages, some challenges also arise. Firstly, new technologies always involve investment costs, which poses particular financial questions for small and medium-sized enterprises (SMEs). Many ask themselves, "Is the switch worthwhile?" The answer is: Yes, in the long run it is. The added value from optimized processes, reduced error rates, faster inventory updates, and more effective warehouse utilization usually far outweighs the initial costs. Furthermore, some major customers or logistics partners may require the use of 2D codes in the future to ensure continued collaboration. Therefore, it is advisable to prepare for the new standards early on to avoid competitive disadvantages.

Ensuring data security when handling 2D codes

Another critical point is data security. Anyone storing extensive product and batch data in a barcode must ensure that only authorized persons or systems have access to it. The same applies to the warehouse management software that analyzes this data. Comprehensive security concepts are required here, ranging from encrypted transmission channels to clearly defined user roles and access permissions. Companies should absolutely ensure that their IT infrastructure is up to these requirements in order to prevent data loss, manipulation, or unauthorized access.

Perspective: Automation and intelligent networking

The changes outlined here are just the beginning. With increasing digitalization and the trend toward Industry 4.0 approaches, warehouse management will become increasingly automated and intelligently networked. Robots can independently identify products based on 2D barcodes and transport them to the correct storage locations. Sensor-equipped racking systems communicate with warehouse management systems and report when a storage compartment is empty or if conditions are not within specifications. Artificial intelligence could perform real-time analyses and trigger automated ordering processes as soon as defined minimum stock levels are reached. "The future belongs to integrated and self-learning systems" is a credo that is gaining increasing traction in numerous companies. And Sunrise 2027 is creating an important foundation for precisely this by establishing international standards that can be understood and used by all stakeholders.

Procedure for practical implementation

For practical implementation, a step-by-step approach is recommended. First, companies should take stock of their current barcode system and existing hardware. Next, they should determine which data should be stored in the 2D codes. Not every company necessarily needs the full range of product information. The crucial point is that all data required for efficient warehouse and supply chain management is captured and provided in high quality. This is followed by the technical rollout: New printers and readers, as well as corresponding software updates, must be integrated. Here, it is advisable to work closely with technology partners and suppliers who are already familiar with GS1 standards and can offer training if needed. Finally, continuous improvement is an important aspect: Once the system is up and running, processes can be further refined and additional functions can be used, such as tracking key performance indicators or integrating with a customer relationship management (CRM) system.

Sunrise 2027 as a driver for change in warehouse and supply chain transparency

In summary, the GS1 Sunrise 2027 initiative goes far beyond a purely technical switch from 1D to 2D barcodes. It involves a complete overhaul of warehousing and supply chain processes, aiming for greater transparency, automation, and accuracy. The GTIN remains the backbone of product identification, while expanded information embedded in the codes themselves ensures improved traceability and more efficient inventory management. "If we don't adapt our processes now, we won't be competitive in a few years," say leading managers from the retail and manufacturing sectors. Early implementation is therefore essential to fully leverage the benefits of the new standards and identify potential pitfalls in a timely manner.

Ultimately, it can be said that the switch to 2D codes and the consistent use of GTINs in conjunction with expanded product data make a sustainable contribution to the modernization of warehouse management. Companies benefit from significantly improved efficiency, lower error rates, transparent supply chain management, and higher customer satisfaction. Those who approach this step with careful planning and make the necessary investments in technology and employee training lay the foundation for a smooth future in an increasingly interconnected world. "Sunrise 2027 marks not only a technological, but above all a cultural shift in global merchandise management," is a common sentiment among industry experts. And this shift has the potential to shape the entire market for warehousing and logistics processes in the long term.

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