A new study by VDC shows supply chains are still hampered by outdated scanners and fragmented labeling, creating costly slowdowns. Companies are turning to 2D barcodes and global standards to restore traceability and keep goods moving.
Fragmented Labeling Undercuts Traceability
Research from VDC, commissioned by GS1 US, highlights how uneven adoption of modern scanning and labeling practices continues to drag on performance. Nearly 70% of logistics operations report weekly issues with barcode readability caused by poor label quality or outdated scanners. These disruptions compound pressure on fulfillment, where 43% of companies cite sourcing transparency and traceability as top priorities.
The report highlights that legacy systems and fragmented processes limit agility. Without consistent data standards, inventory accuracy suffers, and companies struggle to meet compliance demands tied to sustainability and forced-labor legislation. Industry observers note that U.S. Customs and Border Protection has already detained apparel shipments due to incomplete or non-standardized labeling, reflecting how operational shortcomings now translate into financial and reputational risks.
2D Barcodes Push Beyond Pilots
Momentum is building for 2D barcode adoption as companies seek to improve visibility and automate fulfillment. According to the study, 47% of organizations point to enhanced information exchange as a key reason for investing in 2D systems, while 36% view inventory management and asset tracking as critical use cases. Unlike traditional one-dimensional barcodes, 2D formats carry richer data sets that support real-time product identification, batch tracking, and expiration monitoring.
Industries from retail to healthcare are beginning to move beyond pilot programs. Global retailers such as Walmart have already tested 2D barcodes at checkout, while pharmaceutical suppliers are integrating them to meet regulatory serialization requirements. As GS1 US emphasizes, combining automation with global standards allows products to move faster and more accurately through complex networks, reducing waste and strengthening resilience.
The Next Data Layer
While 2D barcodes are gaining ground, the bigger shift may come from how companies integrate these identifiers with IoT sensors, digital product passports, and blockchain records. Together, they promise to move traceability from a compliance burden into a source of predictive intelligence, where logistics teams don’t just know where goods are, but can anticipate disruptions before they occur.
