Organizations implementing two-dimensional (2D) barcodes in warehouse and distribution environments can reduce operational costs by more than 60%, representing annual savings of more than $500,000 per facility, according to "Advancing Intelligent Data Capture in Modern Logistics Operations,” commissioned by GS1 US and conducted by VDC Research.
"Organizations are recognizing that 2D barcodes address long-standing scanning inefficiencies associated with traditional 1D barcodes, unlocking measurable improvements in speed, accuracy and operational cost savings while also enabling richer product transparency," says Gena Morgan, VP, global standards, GS1 US. "As this research shows, these efficiencies create a more reliable data foundation that supports better inventory management, traceability and supply chain visibility as the industry continues to move toward more connected, data-driven operations."
Key takeaways:
· The research highlights persistent challenges with 1D barcodes, including readability issues, inconsistent labeling and limited ability to capture attribute-level data.
· Organizations relying primarily on 1D barcodes report a 7% first-pass scan failure rate and a 1.5% relabeling rate, increasing labor time, operation disruptions and shipment errors.
· It’s estimated that facilities operating with 1D barcode workflows can incur more than $800,000 annually due to cost drivers such as shipment errors and labor from rescanning and relabeling.
