GS1 Philippines kicks off landmark shift from barcode to QR code to bolster local retail industry’s digital transformation

In an age where consumers expect immediate and transparent access to information regarding their purchases, the supply chain industry is experiencing a significant transformation. According to the 2023 Global Shopper Study conducted by Zebra Technologies, 77% of retail associates acknowledge that today's shoppers are more knowledgeable than ever before, indicating a well-informed and discerning consumer base.

In response to these changing consumer demands, businesses are rethinking their products and supply chains to provide increased transparency, resilience, and sustainability. The study also highlights that around 7% of companies are either incorporating or planning to integrate business intelligence and analytics into their supply chain management strategies.

Addressing these industry challenges, GS1 Philippines, the primary organization overseeing local barcode standards, has initiated the adoption of the 2D barcode in the Philippines. This initiative aims to enhance operational efficiency within the supply chain industry and facilitate improved product engagement between businesses and consumers through digital labeling.

The 2D barcode, commonly known as a "QR code," utilizes web technologies and the existing barcode system to store comprehensive product information accessible through a single scan. By utilizing QR codes, brand owners and retailers can easily engage with consumers by providing detailed information about their products. With a simple scan using a smartphone, buyers can instantly access information such as ingredients, allergens, recipes, rewards, promotions, manufacturing details, sustainable sourcing practices, recycling instructions, re-ordering options, and other relevant information authorized by the brand.

The QR code also allows retailers and supermarkets to ensure product safety, guarantee product freshness, and reduce food waste. Additionally, it enables regulators to check a product's sustainable characteristics.

Moreover, the migration to 2D barcodes improves operational efficiency in the supply chain industries. In addition to holding GS1's global trade item number found in the traditional 1D barcodes, the QR codes can now store essential information, such as a product's batch or lot number, serial number, and expiry date. With access to crucial data, all stakeholders in the supply chain can boost transparency, improve inventory management, enable traceability and sustainability initiatives, and simplify recall and return processes.

"In the face of rapid technological advancements, it's critical that we adapt to empower the supply chain industry further. The introduction of QR code technology serves as Pandora's box, opening infinite possibilities for brands and retailers to make their operations more efficient and improve customer engagement. GS1 Philippines members pave the way in this groundbreaking transition to more efficient and robust supply chain operations," GS1 Philippines President Roberto "Bobby" Claudio said.

The announcement aligns with the global commemoration of GS1 Global's 50th anniversary of the barcode's invention, celebrating a legacy of innovation in business solutions through web technologies and GS1 Standards.

GS1 Philippines is eyeing to prepare industries for the shift to the 2D barcode by 2027. By then, all retail POS scanners globally are capable of reading and processing 2D barcodes powered by GS1 and there is broad, global brand owner implementation of the same.

Currently serving more than 5,000 retailers, GS1 Philippines targets to reach 30,000 businesses nationwide by the end of 2024.

To explore the infinite possibilities of one scan with GS1’s 2D barcode technology, you may visit https://www.gs1ph.org/ or their Facebook page.