2D matrix code: How to switch from the barcode to the GS1 DataMatrix code - example Aldi

🌐 Digitalization and automation are advancing in almost all industries, and retail is no exception. One of the most significant developments in this area is the transition from traditional one-dimensional barcodes (EAN/UPC) to two-dimensional (2D) barcodes such as the GS1 DataMatrix Code. This transition is driven by GS1's global Sunrise 2027 initiative, which aims to make all POS systems worldwide capable of reading and processing 2D codes by the end of 2027. Companies like Aldi are already in the middle of this transformation process and are relying on innovative solutions to meet the requirements of the future.

🖋️ Why switch to GS1 DataMatrix Code?

The GS1 DataMatrix Code offers numerous advantages over conventional barcodes. Not only is it more technologically advanced, but it also enables processes along the entire supply chain and in retail to be designed more efficiently. The most important advantages at a glance:

Higher information density

In contrast to classic barcodes, the GS1 DataMatrix can not only store the GTIN (Global Trade Item Number), but also additional information such as expiry dates, batch numbers or serial numbers. This enables more precise traceability and quality control.

Space saving

The compact structure of the code allows it to be applied to smaller areas such as packaging or directly to products - for example by laser engraving.

Fault tolerance

Thanks to integrated error correction, the code remains readable even if it is damaged.

360° scannability

The GS1 DataMatrix Code can be scanned from any direction, significantly increasing efficiency at checkouts and in logistics processes.

Web connectivity

The GS1 Digital Link allows products to be linked to online resources such as detailed product information or recall details.

These properties make the GS1 DataMatrix Code a central building block for digitalization in retail.

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🚀 Steps to a successful transition

The introduction of the GS1 DataMatrix Code requires a systematic approach to overcome technical, organizational and communication challenges. Here are the essential steps:

🔍 1. Analysis and planning

The first step is to identify suitable products to adopt the new code. Companies should work closely with their supply chain partners to establish a clear transition timeline. A thorough analysis helps to identify potential obstacles early on and develop strategies to overcome them.

⚙️ 2. Technical preparation

The introduction of the GS1 DataMatrix Code requires investments in new technologies:

•  Printing systems must be able to apply 2D codes precisely.
• Scanners and cash register systems must be upgraded accordingly.
• The use of standardized data identifiers (application identifiers) makes it possible to securely encrypt additional information in the code.

🔬 3. Carry out pilot projects

Pilot projects are essential to test the implementation of the new code under real-world conditions. Companies can first assign the GS1 DataMatrix code to selected products or product groups and check its functionality. Challenges and solutions from these tests serve as a valuable basis for later rollouts to larger product quantities.

Aldi has already started using such technologies. For example, QR codes or similar 2D codes such as the ALDI Transparency Code (ATC) are attached to frozen pizzas or other products. These codes enable customers to access information about the origin and supply chain of a product - an important step towards greater transparency and sustainability.

🔗 4. Integration into existing processes

Integrating the new code into existing business processes is a crucial factor for success:

•  Employees must be trained in how to use the new technologies.
• IT systems must be adapted to be able to process the additional data from the GS1 DataMatrix Code.
• Processes along the supply chain must be optimized to take full advantage of the new possibilities.

🗣️ 5. Communication with trading partners

A smooth transition requires close cooperation with trading partners:

• Partners must be informed of the planned changes.
• It should be ensured that their systems are also compatible.
• Joint training and test runs can help identify potential problems at an early stage.

📦 6. Dual labeling during the transition period

During the transition period, it may be necessary to apply both the traditional EAN/UPC barcode and the new GS1 DataMatrix code to products in parallel. This ensures compatibility with older systems and makes the gradual transition easier.

🎯 Implementation challenges

The switch to the GS1 DataMatrix Code also brings with it challenges:

Investing in technology

Companies need to invest in new printers, scanners and IT systems. These costs can be a hurdle, especially for smaller companies.

Coordination along the supply chain

Close coordination between manufacturers, suppliers and retailers is necessary to avoid inconsistencies.

Employee training

Employees must be trained to use the new technologies in order to minimize errors and increase efficiency.

Despite these challenges, the benefits clearly outweigh the disadvantages: The GS1 DataMatrix Code enables higher data density, better traceability and improved efficiency - both at the checkout and throughout the supply chain.

🌟 Example Aldi: pioneer in digitalization

Aldi shows examples of how companies can benefit from the introduction of new technologies. With the ALDI Transparency Code (ATC), the company already offers its customers the opportunity to access detailed information about products - such as production location or sustainability aspects. This transparency not only meets consumers' growing demands for more information, but also increases trust in the brand.

In addition, Aldi uses 2D codes to increase efficiency at the checkout: 360° scanning speeds up checkout, which reduces waiting times and improves customer service. At the same time, the higher information density of the code facilitates internal processes such as warehouse management and traceability.

🏁 A step towards the future

The switch from the classic barcode to the GS1 DataMatrix code marks an important milestone for retail. Companies like Aldi are already showing the potential this technology offers - from more efficient processes to more transparency and better fulfillment of customer needs.

In order to successfully implement this transformation, structured planning is essential: from technical preparations to pilot projects to employee training and close collaboration with trading partners. Although implementation requires initial investment, it pays off in the long term through increased efficiency and competitive advantage.

With a view to “Sunrise 2027”, companies should start adapting their systems early and prepare for the new standards - because those who act now will be able to benefit sustainably from the advantages of this technology.

📣 Similar topics

• 📣 Switching to 2D barcodes: A technological milestone
• 🛍️ Digitalization in retail with GS1 DataMatrix
• 💡 Advantages of the GS1 DataMatrix code at a glance
• 🌍 Sunrise 2027: Revolution in the barcode system
• 🏪 Aldi as a pioneer: Transparency through 2D codes
• 🚀 Steps to implement the GS1 DataMatrix code
• 🔧 Challenges and solutions when introducing new barcodes
• 🧩 Traceability and efficiency thanks to GS1 DataMatrix
• 📦 Supply Chain Innovation: Moving from 1D to 2D
• 🔗 Web connectivity through the GS1 Digital Link

#️⃣ Hashtags: #Digitalization #Retail #GS1DataMatrix #Transparency #Sunrise2027

More about it here:

• The introduction of the barcode in 1973 revolutionized global logistics
• A successor to the barcode on product packaging is now in the starting blocks

More about it here:

• The barcode has revolutionized global logistics in several ways

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