Part 1 of this article series explained the format and standards used in the creation and use of barcodes. In this part, we will look at things to consider when choosing barcodes within industry.
RFID: Tomorrow’s promise, today’s considerations
RFID technology represents an exciting frontier in inventory tracking with its ability to eliminate the need for line-of-sight scanning. By using radio waves to transmit data wirelessly, RFID systems offer the tantalising possibility of simultaneous scanning of multiple items and real-time inventory visibility.
Retail innovators like Walmart and Zara have begun implementing RFID solutions in select applications, demonstrating the technology’s potential to transform inventory management. The ability to conduct rapid inventory counts and achieve near-perfect stock visibility suggests that RFID will likely play an increasingly important role in future supply chain operations.
However, for many businesses, RFID’s promising future hasn’t quite arrived yet. Several practical considerations are worth evaluating before implementation:
• Investment considerations: Current RFID tags remain more expensive than barcode labels and the supporting infrastructure, including readers, antennas and middleware represents a significant initial investment. As production scales increase these costs are gradually declining, but haven’t yet reached price parity with barcode solutions.
• Environmental factors: In some industrial settings, RFID signal performance can be affected by metals, liquids and electromagnetic interference. These challenges are being addressed through ongoing technological improvements, but solution-specific testing is advisable.
• Evolving standards: While the industry is moving toward greater standardisation, some RFID implementations still use proprietary technologies that may require careful integration planning across supply chain partners.
• Implementation strategy: Successful RFID adoption typically works best with phased implementation approaches allowing businesses to learn and adapt their processes gradually, rather than attempting wholesale replacement of existing systems.
For most businesses today, particularly small to medium enterprises, the proven reliability and cost-effectiveness of barcode systems, especially 2D barcodes, continue to offer the best immediate return on investment. However, forward-thinking companies may benefit from exploring limited RFID applications in parallel with their primary barcode infrastructure, positioning themselves for the technology’s promising future.
Why contrast and label material matter
A barcode is only as effective as its readability. If a scanner cannot detect the barcode due to poor contrast or material issues, the entire system can break down.
The best barcode contrast comes from black bars on a white background, ensuring optimal readability under red-light scanners. However, in cases where colour variations are necessary, certain rules apply. Warm colours like red, yellow and orange should be reserved for backgrounds, as they reflect poorly under laser scanners. Cool colours such as green, black, and blue are better for barcode bars.
Material selection also plays a crucial role in barcode performance. Glossy surfaces or reflective materials can create glare, preventing accurate scanning. Additionally, environmental factors must be considered. Paper labels work well for general inventory, but may degrade in moisture-prone environments. For outdoor or industrial use polyester, polyethylene or vinyl labels offer greater durability, resisting water, chemicals and wear.
Linear barcode implementation: Technical considerations for reliable scanning
While linear barcodes like UPC and EAN appear straightforward, achieving consistent scanning reliability requires attention to technical specifications. For UPC-A symbols, the standard size is 1,469 inches wide by 1,02 inches tall, with specific quiet zones (blank margins) on either side to ensure proper scanning. Reducing barcode symbols below 80% of their nominal size can increase scanning failures, particularly on high-speed retail checkout systems.
Print quality represents another important factor in barcode performance. The ISO/IEC barcode print quality standard defines specific parameters including symbol contrast, edge determination, and the ability to decode. Placement consistency also affects scanning efficiency. Retail industry standards recommend that barcodes appear on the bottom right of a product package whenever possible, with the bars running vertically (ladder orientation) on cylindrical products to reduce curvature distortion. This standardisation supports more efficient scanning operations and helps reduce checkout times.
For businesses implementing barcode systems these technical considerations have practical implications. Poorly printed or improperly sized barcodes can lead to failed scans, manual entry errors and operational slowdowns. Regular quality checks and proper printing equipment help maintain system reliability.
Why one small barcode error can cost millions
Even the most sophisticated barcode system is useless if data integrity isn’t maintained. A single mislabelled item can cause inventory discrepancies, shipping errors and lost revenue- all of which add up quickly. Conducting barcode audits before full implementation ensures accuracy from the start. With the appropriate software, businesses can scan a barcode and instantly verify product descriptions and stock codes, catching errors before they disrupt operations.
Additionally, while some businesses embed quantity data into barcodes, this must be carefully managed. If packaging is altered and barcode labels are not updated the entire system risks becoming unreliable. A well-integrated inventory management system remains the best safeguard against barcode-related issues.
Barcode management: From individual products to logistics units
While individual UPC and EAN codes identify specific products at retail, the GS1 system includes additional barcode formats for managing product groupings and logistics units. The ITF-14 format (sometimes called the SCC-14 or Shipping Container Code) extends identification capabilities to case-level and pallet-level units, creating practical hierarchical relationships between individual items and their shipping containers.
This multi-level approach addresses common logistics requirements. In warehouse operations, staff can scan a single ITF-14 code on a case rather than scanning each individual product barcode inside, improving receiving efficiency. Inventory management systems can then update stock counts based on the known quantity of items per case, reducing manual counting steps.
For products with variations like size or colour, systematic barcode allocation becomes important. Rather than treating each variation as an entirely separate product, many businesses implement structured allocation schemes that follow logical patterns. This organised approach helps simplify inventory analysis and reporting across product families.
Barcode management also plays a role in product lifecycle considerations. When products undergo packaging changes or reformulation, businesses need to decide whether to assign new identification codes or maintain existing ones. Following GS1 guidelines for these scenarios helps maintain consistency across retail and supply chain systems.
EU digital product passports: 2D barcodes leading regulatory compliance
The European Union’s Digital Product Passport (DPP) initiative represents one of the most significant regulatory developments in product tracking and sustainability. As part of the EU’s Circular Economy Action Plan and the European Green Deal, DPPs are being introduced to provide comprehensive information about a product’s components, materials, chemical substances, repairability and end-of-life handling.
2D barcodes, particularly QR codes, are emerging as the preferred implementation method for these digital passports. When a consumer or regulator scans the QR code on a product, they can access detailed information about its environmental impact, repair instructions and recycling options. This aligns perfectly with the EU’s goals of promoting sustainability, transparency and circular economy principles.
For South African manufacturers and retailers selling in the EU market, implementing DPP-compliant 2D barcode systems is becoming a regulatory necessity. The first product categories affected include batteries, electronics, textiles, furniture and construction materials with more to follow in coming years.
The data capacity of QR codes makes them uniquely suited for this application as they can store the necessary product identifiers while linking to continuously updated information in cloud databases. This dynamic capability ensures that product information remains current throughout the product’s lifecycle, even as regulations evolve.
By adopting advanced 2D barcode systems now, businesses can ensure compliance with emerging EU regulations while building more transparent, sustainable supply chains. This represents a strategic advantage that goes beyond operational efficiency to address growing consumer and regulatory demands for product transparency.
Linear barcodes and emerging technologies: Evolving applications
As retail and supply chain technologies advance, traditional linear barcodes continue to find new applications. Some retailers are connecting product identification data with customer relationship management systems allowing checkout scans to trigger personalised offers or update loyalty programmes. This integration helps bridge physical and digital shopping experiences without requiring new barcode formats.
In supply chain management, standard barcode information increasingly serves as an entry point to more comprehensive traceability systems. Some food retailers have implemented tracking systems that connect linear barcode identifiers with expanded product journey information providing details about sourcing and handling when needed for regulatory compliance or consumer information.
Healthcare applications represent another area where linear barcodes continue to serve important functions. The FDA’s Drug Supply Chain Security Act (DSCSA) requires pharmaceutical products to have unique product identifiers, with some manufacturers adapting GS1-based systems to meet these requirements. These identification systems help support product authentication and proper inventory management in healthcare settings.
As we look toward emerging retail technologies like automated stores and computer vision systems, traditional barcodes may increasingly work alongside newer identification methods. Some systems can now recognise products through multiple means potentially using barcode data as one reference point among several identification methods.
Conclusion
Barcodes have come a long way since their first commercial use in the 1970s, evolving from simple linear formats like UPC to sophisticated 2D variants like QR codes. Today, they remain the most reliable, cost-effective tool for business automation, enabling efficiency and accuracy across industries. With new regulatory frameworks like the EU’s Digital Product Passport, 2D barcodes are not just a technological choice but increasingly a compliance requirement.
The future of automated tracking lies not in abandoning proven barcode technology but in leveraging its evolution. By embracing 2D barcodes, businesses can achieve the data capacity and versatility needed for modern operations without the substantial risks and costs associated with less established alternatives.
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