A barcode tracking system with GS1 standards is important for businesses looking to optimize retail operations while avoiding costly inventory errors. Companies lose about $1.1 trillion annually due to inventory inaccuracies. By using GS1 QR codes for tracking, businesses can simplify their processes, reduce errors, and boost productivity.
Read on to learn how this next-gen barcode system works and how to supercharge your business operations in 2025 and beyond with a GS1 Barcode Tracking System.
What is barcode tracking?
Barcode tracking involves monitoring a retail product, asset, or inventory using a barcode, a machine-readable representation of data.
There are two types of barcodes commonly used nowadays: 1D barcodes, like UPC and EAN, and 2D barcodes, such as QR codes and Data Matrix.
A barcode tracking system is a technology that uses unique barcodes to identify and track products, assets, or inventory throughout various business processes. It primarily relies on barcodes to store and transmit critical product information.
There are three primary components of this system:
- Creating barcodes: Generate unique barcodes for products, packages, or assets. These barcodes store important information such as IDs, pricing, and other details.
- Scanning infrastructure: Devices, such as hand-held scanners, that read and interpret the information encoded in barcodes.
- Database management: The collected data is stored in software. The software processes the scanned data and generates reports accordingly.
How the GS1 barcode tracking system works
A tracking system that uses GS1 barcodes helps streamline the supply chain operations in a business. The process involves several key steps:
Step 1: Barcode generation
The first step in barcode generation is assigning each product a unique Global Trade Item Number (GTIN).
This number acts as a universal identifier, ensuring that every product has its own distinct identity and can be recognized easily across different systems and devices.
Next, the GTIN is converted into a GS1 QR code barcode using a quality GS1 barcode-making platform.
These special barcodes can store more than just the product’s ID. They can also include important details like expiration dates, batch numbers, or product type, which makes them even more useful for tracking and managing products.
Step 2: Printing and scanning
Once generated, the GS1 Digital Link QR codes are printed on product packages. When products are processed or moved, barcode scanning devices read and interpret the encoded information, ensuring seamless tracking and management.
Step 3: Data processing and inventory management
The data is transmitted to a centralized database to track product movement, location, or status instantly. For example, when a product is sold, the system automatically deletes the quantity from the database, providing accurate inventory levels report.
Step 4: Barcode tracking and traceability
GS1 barcodes enable businesses to track products in the supply chain management process from manufacturing to retail. Each scan creates a record of the product that can be tracked and traced in real-time.
The transparency level achieved after using barcodes helps businesses identify weaknesses and monitor their performance efficiently.
Step 5: Integration with other technologies
GS1 barcodes can be integrated with other key technologies, such as RFID (Radio Frequency Identification) and IOT (Internet of Things).
This integration provides a more robust overview of supply chain activities.
Key benefits of GS1 barcode tracking
Tracking systems provide operational excellence through their advanced tracking. Some of the key benefits of using this technology are given below:
Precision in inventory management
The unique identifier given to each product helps track real-time stock levels, contributing to precise inventory management. It also saves time and reduces manual errors, streamlining all business operations.
Supply chain visibility
GS1 barcodes make products trackable. You can easily find the location of your product, no matter where it is.
More importantly, the standardization process streamlines the communication between suppliers, manufacturers, and retailers. They can coordinate with each other and reduce delays and logistical bottlenecks.
Cost optimization
Using an automated tracking system reduces the cost of many operations, such as inventory management costs, manual labor expenses, and the like.
Businesses can also improve their operational efficiency while saving time and resources that would otherwise be spent on error correction or manual record keeping.
Compliance and quality control
GS1 barcodes meet international regulatory and industry standards. The use of traceable barcodes ensures rapid quality assurance checks, which is especially critical in industries such as healthcare and food, where detailed record-keeping and quality assurance are required.
Data-driven insights
Centralized data can be accessed to gain insights into operational performance. This data can be analyzed to make informed decisions in the future and enable strategic resource allocation.
Industry-specific applications of barcode tracking
Tracking using barcodes powered by GS1 standards benefits various industries. Some of its most common applications in different sectors are:
Retail and e-commerce
In retail and e-commerce, inventory tracking using GS1 barcodes ensures real-time price and stock updates. This helps prevent errors and improve customer satisfaction.
Additionally, barcodes are crucial for theft prevention, as they track products throughout the supply chain. They also enable asset tracking, which ensures valuable items are managed properly.
Moreover, personalized customer experiences are possible by linking product insights to the barcode, which can guide promotions or recommendations.
Automatic billing and checkout processes further enhance customer convenience and reduce human error.
Healthcare and pharmaceutical
Barcode tracking in healthcare is vital for patient safety and operational performance. It tracks the sterilization of surgical instruments to ensure they meet health standards.
In the pharmaceutical sector, barcodes help prevent counterfeit drugs by verifying their authenticity at every point in the supply chain.
They also monitor the usage, maintenance, and location of medical equipment and ensure precise medication tracking, including dosage and timing crucial for patient care.
Logistics and transportation
Barcode systems provide real-time updates in logistics and transportation as products move through checkpoints, ensuring better tracking and timely delivery. Barcodes also improve warehouse automation, optimizing space and productivity.
They also track weight, volume, and shipping documentation, which is necessary for accurate logistics management, especially in international shipping.
Create a GS1 QR code today
Integrating a barcode tracking system into business operations is a power move that improves monitoring processes, record-keeping, and customer experience.
With an array of benefits, including tracking products in real-time and tracing their location, quantity, and quality, companies can boost their workflows.
Considered next-generation barcodes, GS1 QR codes provide insights on engagements to companies that they use to align their strategies according to their customer’s needs.
It’s a game-changer for businesses looking to future-proof their operations with a scan.
