In this edition of the Spotlight Stephen Gryczka, director of strategy and corporate development at Markem-Imaje, explains how manufacturers can utilize the GS1 Digital Link barcode to improve production efficiency and profitability.
The production and packaging of consumer goods have rapidly evolved, bringing both growth and challenges such as supply shortages, rising costs, and shifting consumer preferences. According to McKinsey and Company, in 2023, Americans spent 10% more on groceries but bought 4% fewer items.
This dynamic means manufacturers must seek every available opportunity to enhance efficiency, reduce costs, and foster brand loyalty. Digital transformation has become essential, with the GS1 Digital Link barcode emerging as a powerful tool for manufacturers aiming to boost agility and profitability.
Understanding 2D barcodes
Unlike traditional UPC (1D) barcodes, which carry limited data like pricing and identification, Digital Link barcodes can store extensive information, including product origin, expiration dates, and web links. GS1, the global data standards organization, recently introduced the Sunrise 2027 initiative, encouraging widespread adoption of Digital Link barcodes across the supply chain by 2027.
Implementing Digital Link barcodes provides manufacturers with several key opportunities for efficiency gains:
Strong collaboration: Successful integration of 2D barcodes requires cross-functional collaboration. Communication across all business areas and with retail partners is essential to fully leverage Digital Link capabilities. This dialogue identifies operational efficiencies and ensures alignment on data tracking, retail requirements, and implementation strategies. Manufacturers must lead by establishing best practices through proactive internal and external collaboration.
Accelerated data management: Effective data management is critical yet challenging. A Hexagon report indicates that 98% of companies face data-related difficulties, impacting collaboration and productivity. Digital Link barcodes address these issues by structuring data more effectively.
Manufacturers can store detailed information such as material origins, expiration dates, inspection outcomes, and component specifics, responding to consumer demands for transparency. Integrating barcode data with Enterprise Resource Planning (ERP) systems further elevates data quality and usability. Success hinges on clean, structured data, making resources dedicated to data management vital.
Enhanced track and trace: Data management extends beyond production lines into distribution channels. Digital Link barcodes significantly enhance track and trace capabilities, promoting supply chain security and product safety.
For example, if quality issues arise, manufacturers can quickly scan barcodes to pinpoint affected batches, reducing waste and recall scope. Retailers can also be alerted swiftly, blocking sales of compromised products, and consumers can easily access recall information, reinforcing trust and brand reliability.
Managing production peaks and valleys: Consumer demand fluctuates continuously due to trends and seasonal factors, complicating inventory management. Digital Link barcodes help manufacturers better anticipate and respond to these fluctuations.
By leveraging real-time insights from retail data and social media, producers can quickly adjust production schedules, aligning more accurately with market demand. Digital Link barcodes facilitate consumer interaction, providing valuable insights into purchasing behaviours, enabling proactive production adjustments, reducing surplus inventory, and minimizing waste.
Getting started: The GS1 Sunrise 2027 initiative represents a transformative opportunity. As market competition intensifies and consumer demands evolve, adopting Digital Link barcodes positions manufacturers to thrive.
The integration process involves robust collaboration, precise data management, enhanced traceability and responsive production planning. Manufacturers who embrace Digital Link barcodes can now achieve operational excellence, meet dynamic consumer preferences and secure a competitive advantage in the rapidly changing market landscape.
This content was sponsored by Markem Imaje.
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