How Suppliers Can Level Up with 2D Barcodes and RFID Technology

Last Updated October 27, 2025

11 min read

With 2D barcodes becoming a supply chain industry standard and RFID technology opening up an entire world of possibilities, suppliers have much to consider when determining how and when to take on these initiatives. In this article, we’ve outlined these technologies alongside important benefits and key considerations.

2D Barcodes and Important Terms

Before diving into the details of how RFID and 2D barcodes are utilized, here is a short list defining some key terms.

Sunrise 2027: The global initiative led by GS1 US requires the implementation of 2D-barcode compatibility point-of-sale (POS) systems by the end of 2027. To stay compliant, brands must adopt these barcodes.

1D Barcode / Linear Barcode: The traditional barcode format (like the UPC) that represents data linearly, is read horizontally, and limited in character capacity.

2D Barcode (Two-Dimensional Barcode): These barcodes use patterns of dots, squares, and lines to form a grid, encoding data horizontally and vertically. They can store significantly more data than traditional barcodes.

GTIN (Global Trade Item Number): A core GS1 identifier that must be encoded in the 2D barcode; in healthcare, the GTIN contains the FDA National Drug Code for U.S. products. These must be purchased.

GS1 Digital Link: A standardized method to encode product identifiers and connect to online information. This technology is used to create a single, multipurpose 2D barcode that’sscanned at point-of-sale. It allows access to digital content like certification, traceability information, and more.

Lot/Batch Number and Expiration Date: Critical traceability data that 2D codes can embed directly, essential for food and pharmaceutical safety and recall readiness.

Unit-of-Use: A term used in healthcare referring to the placement of the GS1 DataMatrix on the smallest packaging (e.g., individual vials) to allow safety checks and eliminate manual data entry.

2D Imaging Scanners: The hardware required to read 2D barcodes, which use camera technology to read codes from any angle. Traditional 1D laser scanners are insufficient.

2D Barcodes Types

QR Code (Quick Response Code)

QR Codes are versatile 2D barcode type known for consumer interaction, such as linking to webpages or promotions. For 2D barcodes to be compliant, they must be GS1 digital-link enabled. This involves a particular type of URL redirection so that the QR code can be read by consumers while also functioning as a barcode for retailers.

This 2D barcode is commonly used in the following industries: consumer product goods (CPG), cosmetics and beauty, supply chain and logistics, automotive, and manufacturing.

QR Codes can hold immense amounts of data, are often chosen for products that want to utilize consumer-facing promotions, product information, and link to digital content.

Here are some common data points that can be included:

Global Trade Item Number (GTIN)

Supplier contact information

Safety information and allergen warnings

Promo codes

Social media links

Ethical sourcing documentation

GS1 DataMatrix

Commonly referred to simply as DataMatrix, this 2D barcode is used extensively across very specific and highly regulated industries. It has a small physical footprint and can track authenticity.

This 2D barcode is commonly used in the following industries:

healthcare and pharmaceuticals

electronics

aerospace

automotive

fresh foods

manufacturing

Often found on medication like vaccines, vials, and medical devices, DataMatrix codes help healthcare professionals streamline product information and traceability. This prevents counterfeit medication from harming patients per the Drug Supply Chain Security Act.

The DataMatrix barcode can store the following details:

Global Trade Item Number (GTIN)

Batch/lot number

Expiration dates

Serial numbers

What are the Benefits of 2D Barcodes for Suppliers?

Traceability and Safety

2D barcodes have significant benefits, particularly in terms of safety. With product recalls regularly occurring in food and beverage industries as well as healthcare, 2D barcodes offer a major benefit over traditional barcodes: recall readiness. These barcodes can hold batch and lot numbers, serial numbers, and expiration dates, and can be identified quickly for testing when a recall occurs.

Additionally, 2D barcodes can prevent waste and loss while also keeping customer safety top of mind, such as in the case of food-borne pathogens. With this level of traceability, companies have the opportunity to remove products that are affected, rather than recalling entire lines of inventory.

In the healthcare field, 2D barcodes offer an additional level of safety by utilizing electronic health records. If a nurse scans a medication, its exact digital identity is included in the record.If a medicine recall occurs, patients who’ve received that particular treatment can be identified quickly and contacted.

Operational Efficiency

The most impactful piece of 2D barcodes is their ability to massively enhance supply chain efficiency. Multidirectional scanning captures large amounts of data, such as pricing, promotion, and inventory. This improvement provides automation, real-time data tracking, and more.

2D barcodes offer time-saving benefits that impact the entire supply chain by eliminating time-consuming processes like manual data entry, visual checks of information, and direction-dependent scanning. They greatly simplify packaging by reducing the clutter of multiple barcodes.

Marketing: Brand Voice, Integrity, and Meeting Consumer Demands

With 2D barcodes, customers have the ability to scan the code for detailed information like ingredient lists, what type of testing has been done, or even sustainability reports. Brands have the opportunity to make customer reviews visible and improve product authentication. Through consumer engagement, companies can build brand trust and gain a competitive advantage through supply chain optimization and personalization, providing all the information consumers want and need.

Additionally, it will become increasingly crucial for brands to understand and meet the consumer demand for transparency, with 77% of customers citing product information as important. 2D barcodes satisfy this with information like ingredients, certifications, sustainability and ethical standards, and more.

When paired with GS1 Digital Link, 2D barcodes connect products directly to the internet, allowing suppliers to change the content behind the scan (e.g., promotional messaging, recall instructions, or location-based offers) without reprinting packaging. This is a major benefit for suppliers, as reprinting packaging can be too expensive to update, causing brand integrity problems.

A Real Example of Supplier 2D Barcode Implementation: Beach Body Butter

Beach Body Butter, a woman-owned small business that makes beauty products, utilized 2D barcodes to their benefit despite having less monetary access than large brands. With such a small product, their founder, Pearl Harris dove into researching the competitive edge that a 2D QR barcode offers.

The small print size of a QR code drew her to implement the barcodes, so she can provide consumers with extra information like extended ingredient lists and certifications, while making her brand packaging roomy and clean.

The ability to update the information behind the dynamic QR code helps suppliers stay compliant and up to date without having to reprint new packaging or labels. This benefit allows suppliers to meet customer needs and easily stay abreast of retailer requirements.

Explaining RFID Technology for Suppliers

Another way suppliers are reducing inefficiencies and improving accuracy is with what may seem like old-school technology: radio waves. But Radio Frequency Identification, otherwise known as RFID, isn’t quite like the dial radios you’re imagining from the eighties.

RFID is a highly sophisticated wireless technology used to uniquely identify items and transfer data about them, even when completely out of sight. Part of a group of technologies known as Automatic Identification and Data Collection (AIDC), RFID is considered the gold standard in operational efficiency for supply chain management.

This is a common technology found in library books, rental cars, ID badges, and even casino chips. Keep reading to learn how this technology offers top-tier accuracy, increases efficiency, and keeps supply chains running at peak operational capacity.

How Does RFID Work?

An RFID system operates through the use of electromagnetic coupling (transfer of energy between two items) to communicate between devices over both short and long distances. It uses an Electronic Product Code (EPC) to track products, similar to a barcode. Later in the article, we’ll cover how one company uses 2D barcodes and RFID in tandem.

A complete system typically needs the following to function:

1. RFID Tags (Transponders): These electronic devices contain a microchip which stores vital data, such as a serial number or unique identifier. They are affixed to individual parts, products, containers, or packaging.

Passive RFID tags are the most common; they contain no internal power source but instead rely on energy transmitted by the RFID reader. These tags can be incredibly compact, even wholly flat RFID stickers, and can last up to 20 years. These are common on technology and merchandise.

Active RFID tags have their own power source, which enables them to communicate with a reader regularly and achieve longer read ranges (100 meters or more). These are common for high-value items that are shipped a long range, such as shipping containers.

2. RFID Readers (Interrogators) and Antennas: The antenna sends a signal to power up a nearby passive RFID tag. The tag's chip accesses its memory and transmits the stored data back to the antenna. The reader interprets this data. Readers can be fixed or mobile (with handheld devices).

3. Management Software: The reader sends the collected data to the management software for storage, evaluation, and integration with systems like Enterprise Resource Planning (ERP) or Warehouse Management Software (WMS).

Related Reading: What is RFID at Walmart?

Supplier Example: 2D Barcodes and RFID in Tandem

Both 2D barcodes and RFID help with tracking products and are rooted in GS1 standards. The company Fresnius Kabi is a medical supplier that creates essential medicines and technologies. They utilized the GS1 DataMatrix 2D barcodes across their whole portfolio of products, after previously implementing RFID technology in a prior subset of products.

Since RFID readers can scan DataMatrix barcodes, they tagged particular products with smart labels that track their location and include lot number and expiration dates when scanned. While an RFID system can be expensive to implement, the long-term financial benefits and ROI can be significant.

Pros and Cons for Suppliers Considering RFID

While RFID is considered the gold standard for operational efficiency for suppliers, there are costs, technical complexities, and infrastructure requirements to consider. The chart below outlines some of the benefits and challenges of RFID implementation.

Category	Benefits for Supplier (Pros)	Challenges for Supplier (Cons)
Operational Efficiency & Speed	Exceptional automation saves time and improves accuracy across the supply chain.	Cell phones don’t work as scanners, requiring field employees/drivers to carry specialized RFID readers (which can be pricey at $1,000 -$3,000).
	Allows bulk reading of items without line of sight (visibility)streamlining warehousing and distribution steps.	If provided readers fail, cell phones can't be used as a backup, which can delay operations.
	Enables faster processing of receipts and shipments.	Some existing inventory management software may need replacing entirely as they may not support RFID.
	Reduces labor costs by automating inventory check-in, counting, and shipment verification. Labor costs often account for 50–80% of distribution center costs.
	Faster and smarter quality assurance processes lead to increased productivity.
Visibility, Accuracy, & Data	Provides real-time visibility for product identification, location tracking, and inventory management.	Barcode labels are noted as just as accurate as RFID in some contexts.
	Can track product data during multi-stage production processes, so suppliers can see quantity and rate of movement.	Barcode labels can be affixed to any surface material without impacting accuracy (it’s not embedded in the product like RFID).
	Data accumulated over time enables better decision-making and time savings on a factory floor.
	Improves inventory accuracy by up to 13% compared to traditional methods.
	Reduces out-of-stocks by up to 70%.
	RFID tags can carry significantlymore information than barcodes(lot, manufacturer, vendor data, etc.).
	Read/write tags allow new data to be recorded onto them by the reader for real-time updating in place.
Costs & ROI	Low cost per tag for Passive RFID: Passive tags only cost 5-15 US cents average per chip when purchased in bulk.	High initial investment in testing,equipment, and education is required.
	More efficient processes, better inventory, and reduced documentation errors lead to overall cost reduction.	Fixed costs include hardware such as readers, antennas, and cables.
	One major pharmaceutical company reported a 20% reduction in operational costsafter integrating RFID.	Passive RFID reader systems cost between $1,000 and $3,000 per reader (including cabling and expenses like Power over Ethernet).
		Active RFID tags are expensive, costing between $5 and $15 each(about 100 times the cost of passive tags).
		The cost of the specialized readers needed for scaling the solution can be prohibitive for small suppliers.
		Recurring costs include consumable tags (inlays/labels), licensing fees, and maintenance.
Technical Requirements & Interference	Passive RFID tags are very durable and can last up to 20 years since they contain no internal batteries.	Material matter: metal can interfere with a tag’s data transmission, and liquid can hinder the signal.
	Tags can handle exposure to weather conditions.	Using RFID tags on metal surfaces requires special, more expensive tags (on-metal tags) with an RFID block to prevent interference.
	Seamless integration with warehouse management software is possible.	Demanding infrastructure needsfor setup, requiring integration of readers, tags, inventory system, network, and wiring.
		Real-time asset tracking requires utilizing GPS and cellular data, which can place a significant burden on servers.
		The orientation of tags relative to the antenna is crucial; if they do not align, the read range will be severely reduced.
		Active RFID systems have few global standards.
Quality, Compliance, & Security	RFID aids in product quality management through timelychecks and better material management.	RFID systems can be vulnerable to hacking.
	Enhances security via tamper-proof tags which show if a package was mishandled.	Security concerns include unauthorized access and tag cloning.
	Used for anti-counterfeiting(e.g., Pfizer used tags onmedical shipments).	Remote devices, including cell phones, can sometimes scan tags at close range and copy data to create cloned tags.
	Plays a critical role in meeting stringent regulatory requirements by ensuring all processes and materials are tracked.	Implementing robust security measures like encryption and access controls is necessary.
	Simplifies container and asset management, tracking valuable returnable assets (like pallets)and reducing theft or neglect.
	Supports sustainability by identifying flawed batches, which reduces unnecessary destruction of further materials and waste.

As suppliers navigate a rapidly evolving retail landscape, both 2D barcodes and RFID stand out as powerful tools for modernization. Together, they offer unprecedented levels of visibility, automation, and data accuracy—key advantages in an era where compliance, efficiency, and consumer trust are non-negotiable. By investing in these technologies now, suppliers can future-proof operations, align with GS1’s global standards, and position themselves for greater agility and competitiveness in the years ahead.