2D Matrix Code Tips: Create the GS1 DataMatrix code yourself or commission it externally? A comprehensive decision-making guide

💡 The decision between internal or external depends on factors such as resources, technical expertise and requirements

💻 Create code yourself

Advantages

Creating GS1 DataMatrix codes in-house offers a number of benefits, particularly for companies looking to maximize control over their processes and data:

1. Cost savings

With the right software, 2D codes like the GS1 DataMatrix code can be created cost-effectively. There are numerous tools and programs available either for free or at affordable prices. This option is particularly suitable for companies with a limited budget.

2. Flexibility

Companies can generate new codes or adapt existing codes if necessary without having to rely on external service providers. This is particularly important if frequent changes are required, for example through new product variants or adjustments in logistics.

3. Independence

Complete control over the creation process and sensitive data remains within the company. This is a crucial advantage when it comes to data protection or compliance requirements, for example for companies in the pharmaceutical or food industries.

Disadvantages

However, internal code creation also presents some challenges:

1. Required technical expertise

Creating GS1 DataMatrix codes requires a deep understanding of the relevant standards, such as: B. the application identifiers (AIs) and the correct data structuring. Without this knowledge, incorrect codes can arise that do not meet the requirements.

2. Investments in software and hardware

Companies may need to invest in specialized software, printers and scanners to generate and validate the codes. These purchases can be a financial burden, especially for smaller companies.

3. Proneness to errors

Without sufficient expertise, there is an increased risk of coding errors. This can lead to problems with readability or processing of the codes in the supply chain, which in turn could reduce efficiency.

📦 Have code generated by a service provider

Advantages

Outsourcing code generation to a specialized service provider can offer significant benefits for companies that want to focus on their core competencies:

1. Professional expertise

Service providers have extensive knowledge in creating GS1 DataMatrix codes and ensuring that the codes comply with international standards. This minimizes the risk of errors and increases efficiency.

2. Integrated solutions

Many service providers offer complete solutions that go beyond pure code generation. This includes integration into existing IT systems, employee training and long-term technical support.

3. Time saving

By outsourcing code creation, internal resources can be used for other important tasks. This is particularly advantageous for companies that do not have their own IT department or have limited personnel capacity.

4. Security and Compliance

External providers ensure that all legal and industry-specific regulations are adhered to. This is a key advantage for companies operating in regulated industries, such as: B. the pharmaceutical industry or in the area of ​​food production.

Disadvantages

Despite the numerous advantages, hiring a service provider also has some potential disadvantages:

1. Cost intensity

External service providers can be more expensive than internal creation, especially for customized solutions or long-term contracts. This should be taken into account in the budget plan.

2. Dependence

Companies become dependent on an external provider. This can become problematic if last-minute changes are required or there are delays in delivery.

3. Limited control

When working with an external partner, sensitive data may need to be shared. This can pose data protection risks, especially if the service provider does not meet high security standards.

🧐 Recommendations

The decision as to whether GS1 DataMatrix codes should be created internally or generated by a service provider depends largely on a company's individual requirements and resources.

For small businesses

For small businesses or those with limited budgets but still have the necessary technical knowledge, in-house code creation can be a cost-effective and flexible solution.

Larger companies

Larger companies or those with complex requirements – such as integration into production processes or compliance with strict industry-specific standards – often benefit from working with specialized service providers. Not only can they ensure compliance with all regulations, but they can also offer long-term support solutions.

A hybrid approach

A hybrid approach could also be a useful option. Companies could build basic code in-house to remain flexible and independent, while drawing on the expertise of external providers for more complex requirements and projects.

In the long term, the decision should be made strategically to maximize efficiency while keeping costs in check. Choosing the right approach can not only optimize logistics and operations, but also increase customer satisfaction and a company's competitiveness.

In 2027, the data matrix code or QR code will replace the barcode - Image: Xpert.Digital

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The introduction of the barcode is considered a groundbreaking milestone in the history of logistics and laid the foundation for the development of global sensor technology. The use of barcodes in logistics began in the 1970s to uniquely identify products and track their movements along the supply chain. The barcode, consisting of a series of bars and numbers, enabled efficient capture and processing of information using automatic readers.

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• From barcodes to global sensor technology: How logistics benefits from groundbreaking technologies

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