The GS1 DataMatrix code as the successor to the barcode used worldwide: It offers protection against manipulation and enables traceability

🔍🔗 As digitalization and globally networked supply chains increase, companies are increasingly faced with the question of how they can optimally label, trace and secure their products against manipulation. An important part of this process is the use of standardized codes such as the GS1 DataMatrix code. This two-dimensional code makes it possible to accommodate a variety of information in a small space, such as item numbers, batch numbers, production dates or expiry dates. The decision whether to create a GS1 DataMatrix code yourself or outsource the generation to an external service provider is by no means trivial. Numerous factors play into this decision-making process: the technical requirements, the resources in the company, the existing employee skills and, last but not least, the planned area of ​​application of the codes. Below, the key aspects of this decision are examined in detail, the advantages and disadvantages are comprehensively presented and supplemented by additional considerations in order to offer a holistic perspective on this topic.

✨ Strategic goals and possible uses

“Basically, the first question is what strategic goals a company is pursuing by using GS1 DataMatrix codes.” Some companies simply want to ensure internal traceability in order to make production and storage processes more efficient. Others, on the other hand, need codes to comply with regulatory requirements, for example for pharmaceutical products, medical devices or in the food industry. Other companies use codes to provide end customers with more information, for example about the origin of the goods or special quality features. Depending on the objective, the requirements for the codes and their quality can vary significantly.

🛠️ Advantages and challenges of building in-house

There are various advantages to creating GS1 DataMatrix codes internally. On the one hand, it is possible to “keep costs under control” because suitable software tools are sometimes available free of charge or for relatively low license fees. In addition, with a little practice, codes can be generated and adapted independently. This means a company can react quickly to short-term changes, such as new batch numbers or changed production data, without having to involve external service providers. Independence from third parties is an advantage, especially for sensitive data. If, for example, information about internal production processes, supplier relationships or proprietary recipes is encoded, it is reassuring to retain full control over the creation process. You are also not bound to fixed delivery times or third-party contractual conditions. This provides flexibility and autonomy.

However, internally generating GS1 DataMatrix codes is not without challenges. First of all, companies must have the necessary technical know-how. GS1 DataMatrix codes follow defined standards, particularly with regard to the structure of the data and the use of application identifiers (AIs). Anyone who does not master these standards runs the risk of producing incorrect codes. In the worst case, this can lead to codes not being recognized by scanner systems or being misinterpreted. The result: processes come to a standstill, batches cannot be traced correctly and unnecessary costs arise. The investment in hardware should not be underestimated either. Special printers, scanners or validation software are often required to reliably create, print and check the codes. Without sufficient specialist knowledge, even small errors in coding can go unnoticed. This is particularly critical when the codes are used in complex supply chains where error-free traceability is required by law.

🤝 Advantages and risks of working with service providers

If you decide against internal creation, you can rely on service providers who specialize in generating GS1 DataMatrix codes. “Such service providers often offer a comprehensive service package” that includes not only the actual code creation, but also integration into existing IT systems, training for employees and long-term support. This professional expertise can be particularly useful for companies that do not have the internal know-how or do not want to build it up. Compliance with all standards and legal requirements is also ensured by external providers. In this way, sources of error can be minimized and processes can be made efficient. In addition, service providers often offer time savings, for example when there are short-term projects or seasonal peaks. The company does not have to dedicate its own resources to familiarize itself with the topic, but can access existing specialist knowledge.

But outsourcing to external service providers also comes with disadvantages. On the one hand, the costs can be significantly higher, especially if tailor-made solutions or long-term service contracts are concluded. A certain dependency also arises. “Anyone who chooses a service provider must take into account that short-term changes cannot always be implemented immediately.” The response time depends on the contractual agreements and the partner’s available capacity. Additionally, sharing sensitive data with external providers can be tricky, even if they adhere to strict data protection guidelines. Internal control over processes and information is lost to some extent.

🔍 Additional practical considerations

In addition to the advantages and disadvantages described, it is worth taking a look at other aspects that often arise in practice. An important factor is scalability. If a company plans to increase its production volume or introduce new product lines in the medium term, the code generation processes must be able to grow with it. With the internal approach, the company should ensure that the software and hardware used is designed for higher volumes. External service providers should be checked to see whether they have sufficient capacity to be able to deliver promptly even if demand increases.

Another point is quality assurance. GS1 DataMatrix codes often have to meet certain quality requirements so that they can be read smoothly at different stages of the supply chain. In addition to correct coding, print quality is also crucial. Dirt, inaccurate print resolutions or incorrect placement on the packaging can lead to reading errors. Companies that create their codes internally must therefore set up their own quality controls and carry them out regularly. External service providers can use standardized testing procedures and tried-and-tested workflows to ensure that the codes always comply with the standards. In this way, complaints when goods are received by the customer, delivery delays or even recalls can be avoided.

🏗️ Integration, privacy and security

The complexity of integration into internal processes should not be underestimated. If a company creates the codes independently, it has all the strings in its hands and can, if necessary, adapt the processes in production, warehousing and logistics itself. However, this also requires appropriate internal resources and coordination between departments. An external service provider can help here by not only creating the code, but also supporting process optimization. The danger, however, is that the company relies too much on external expertise and does not build up its own specialist knowledge internally, which can be disadvantageous if you change service providers later or if unexpected problems arise.

🎯 Create GS1 DataMatrix codes yourself or have them generated by a service provider?

The decision to create the GS1 DataMatrix code yourself or have it generated by a service provider depends largely on the individual circumstances. It is an interplay of costs, know-how, flexibility, security requirements, scalability, quality assurance and the company's strategic orientation. Anyone who deals with these topics in detail in advance, realistically assesses internal competencies and defines clear requirements can make a well-founded decision that will lead to optimal use of the GS1 DataMatrix codes in the long term.

📣 Similar topics

• 🔍 How do GS1 DataMatrix codes work in practice?
• 🏭 GS1 DataMatrix Codes: Supply Chain Optimization
• ⚖️ Creating it yourself vs. outsourcing: What’s really worth it?
• 💻 Software & tools for internal code creation
• 🌐 Why DataMatrix codes are essential for digitalization
• 🤝 Collaboration with service providers: opportunities and risks
• 🔒 Secure data protection when creating product codes
• 📊 Efficient supply chain management through GS1 standards
• 🔧 Ensure quality control during code generation
• 🌱 How do companies scale their GS1 code processes sustainably?

#️⃣ Hashtags: #Product labeling #GS1Standards #Supply chain management #Digitalization #Quality assurance

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