In this article, learn about:
- How to plan, prepare, and implement 2D barcodes across retail systems and POS networks.
- How to set up 2D barcodes for customer visibility, accuracy, and operations.
- How to secure stakeholder alignment, ensure data quality, and roll out new technology successfully.
By the end of 2027, every retail POS system must be able to scan, read, and process 2D barcodes. It's easy to treat this as another compliance task, but the retailers who view this shift as a launching point toward greater visibility and omnichannel alignment will pull ahead.
2D barcodes provide retailers with a clear and quick view of what's happening across every shelf, aisle, and channel. The data capabilities, traceability opportunities, and waste reduction savings will help retailers build a 21st-century POS ecosystem that's flexible, fluid, and readily capable of supporting new technologies.
For retailers whose goal is to achieve shared visibility between retailers and suppliers at the speed of the market, 2D barcodes are a must. We've broken down the implementation steps one by one, so you can get your systems up and running efficiently.
Related Watching: 2D + RFID: Better Together
Phase 1: Strategic Planning for 2D Barcodes
Step 1: Define the Scope and Stakeholders
Every good project starts with a clear roadmap. We recommend involving all essential stakeholders early, as a unified framework is crucial to success. Aligning your retail business with broader digital literacy and strategy goals will ensure buy-in and allow your team to treat this as a modernization journey rather than just an upgrade task.
Start with essential planning steps, with the right people at the table:
- The Who: Cross-functional collaboration is key to success. Include decision-makers in IT, POS operations, merchandising, supplier management, and master data owners.
- The What: Identify what parts of the retail ecosystem (POS, self-checkout, e-commerce, inventory) will be affected first. We recommend starting with POS systems, as they will be affected most dominantly by the mandate.
- The When: Time the rollout to minimize operational disruption and align with system refresh cycles. For example, if upgrading POS scanners and software is needed, then consider waiting to implement new processes during slower times (not during back-to-school or holiday peak seasons).
Step 2: Assess Current Ecosystem and Prioritize Use Cases
It's easy to plan promotions, pricing, or strategies that sound good on paper, but fail to translate into practicality during store execution. With input from stakeholders, we recommend determining use cases that can translate easily from plan to reality. For example:
Planned Scenario: "This yogurt expires in 5 days, markdown by 30% on day 4.”
Reality: Store teams can’' see expiry data, so markdown happens late, and food waste rises.
Solution: 2D barcodes let suppliers and retailers encode expiration dates.
Planned Scenario: “Targeted recall only affects batch A1432.”
Reality: The store can't isolate items by batch, so it has to remove all SKUs.
Solution: 2D barcodes offer batch-level traceability
When you understand how your current system works, teams can identify inefficiencies and data silos. Some common areas of isolation in the retail space include:
- Data lives in multiple systems (item master, POS, Warehouse Management Systems, supplier portals) that don’t talk to each other.
- Suppliers send static data files, not dynamic product attributes.
- Retailers capture information (like markdowns or waste) that never flows back upstream.
Step 3: Define Required Data Elements
2D barcodes can encode various data types, and the type of products carried can help guide retailers on which data types are required. At a minimum, you'll need a GTIN (Global Trade Item Number) with an Application Identifier (AI), a type of numerical prefix used in barcodes and RFID tags.
For clothing retailers, batch/lot numbers could be included. Grocery retailers might want to include expiration dates to improve return on investment (ROI). The more data you have, the more traceable and transparent you are as a retailer. These pieces of data, as well as any further brand/marketing data encoded into 2D barcodes, are increasingly important in today's customer landscape.
Phase 2: Technical Readiness for 2D Barcode Implementation
Step 4: Scanner Hardware Upgrades
Once all thought work and pre-planning have occurred, it's time to look at the practicality of upgrading hardware. 2D barcodes require optical imagers to read GS1 DataMatrix Codes, QR Codes, and DataBar symbols.
Many retailers use linear scanners that read 1D barcodes; therefore, we recommend examining every scanning touchpoint. Scanners in front lanes, self-checkout systems, mobile or handheld POS devices, and warehousing/stocking operations should be upgraded to optical imagers. Engaging scanner vendors early on will ensure smooth operations with your POS software’s data parsing rules.
Failing to upgrade the right scanner can lead to issues, including:
- Scanning failures or errors at checkout.
- POS systems pulling the wrong data fields.
- Lost data (e.g., expiry date never recorded).
- Slower transactions and frustrated store teams.
Step 5: POS Software and Host System Configuration
After making the necessary hardware upgrades, it’s time to focus on software.
Point-of-sale (POS) and host systems act like the brains of your retail operation. When you move to 2D barcodes, those systems can’t just scan the code; they need to understand and use the information inside it.
- Start by making sure your POS system can read a 14-digit GTIN, and then focus on additional data encoded in barcodes like expiration dates or lot/batch numbers. Working with IT and internal teams is crucial to configure your POS properly.
- Test your systems with real barcodes from different suppliers. Ensure that your scanners and POS systems can handle data in any order and still process it correctly. Some suppliers might put the expiration date before the lot number, and your system should still recognize both.
- Confirm that your POS supports both GS1 formats: Element String (used in most operations today) and Digital Link, which connects products to digital info like sourcing or recycling details. This ensures your system is ready for future changes in how data is shared. We recommend involving POS support teams early to ensure that this is feasible.
When software is configured correctly, your technology can grow with you by supporting new 2D barcode use cases, such as automated markdowns, sustainability tracking, or improved product traceability, without requiring a significant rebuild. The goal is to build systems that don't just scan smarter, but think smarter as your retail business evolves.
Phase 3: Ensuring 2D Barcode Data Integrity
Step 6: Encoding the Right Data
As covered in Step 2, it’s important to ensure that systems can correctly handle and store GTINs. Ensure that all GTINs are available in your POS lookup file to avoid delays during checkout. It's essential to work with your suppliers on aligning GTIN governance standards, as consistent data management across all business partners is the foundation of clean, reliable barcode data.
Step 7: Using Your Data for Real Impact
Once data accuracy is confirmed, you can start implementing strategies that turn those scans into automation, intelligence, insights, and actionable steps. Examples include:
- Sale prevention: Automatically stop checkout for expired or recalled items.
- Dynamic pricing: Trigger markdowns as products approach expiration.
- Traceability: Use batch or lot data for item-level recall management.
- Analytics: Capture scan data to improve demand forecasting and replenishment accuracy.
Each new data point retailers capture is an opportunity to lower costs, reduce waste, and strengthen consumer trust through more accurate operations, resulting in measurable business improvements.
Phase 4: Staff and Customer Rollout of 2D Barcodes
The success of a 2D barcode rollout depends on how well systems, people, and partners work together. In this phase, the focus shifts from technical setup to quality control, collaboration, and training. This ensures that every scan delivers reliable data and a smooth store experience.
Step 8: Barcode Quality and Testing
Suppliers need clear standards for barcode size and print quality. As more suppliers engage in your 2D barcode rollout, it’s crucial to test and check barcodes often. We recommend beginning with a pilot run in a mix of stores and measure real performance by tracking scan rates and feedback from store teams. Reflecting on those learnings will help ensure that labels are printed accurately and clearly.
Step 9: Staff and Customer Training
Team culture matters, and retailers’ end goal should be to instill confidence in retail employees, as new technology rollouts can cause confusion. Front-of-house staff should know how to handle new scanning behaviors and system alerts, such as expiration warnings, while back-of-house teams need to learn how to create, print, and manage 2D labels correctly.
Customers should also understand the benefits of 2D barcodes, making marketing a crucial aspect. It's essential to use signs, packaging, or digital messages to explain how 2D barcodes offer transparency, traceability, and better product experiences. The goal is empowerment: to help every employee and shopper see 2D not just as another code, but as a more intelligent and more connected way to interact with products.
