For decades, the one-dimensional (1D) barcode, the familiar pattern of black lines found on virtually every product, has been the universal language of global commerce. Yet, as the supply chain grows more complex, data-driven, and compliance-heavy, the limitations of traditional barcodes are beginning to show. Unreadable, damaged, or low-quality barcodes are slowing operations and costing companies hundreds of thousands, even millions of dollars in lost productivity, compliance fines, and chargebacks.

Additionally, with the industry’s transition toward two-dimensional (2D) barcodes under GS1’s Sunrise 2027 initiative, the cost of inaction is only going to increase.

The hidden cost of a bad barcode

When a barcode fails to scan, the immediate cost might seem trivial—a few extra minutes to relabel or manually enter data. But scale that issue across inbound docks handling thousands of pallets and tens of thousands of SKUs, and the effect quickly multiplies. Companies dealing with high SKU volume, from retailers to logistics providers to manufacturers, are facing fines for noncompliance, penalties for mislabeling, and added labor costs for manual data entry and reprinting.

In regulated sectors like healthcare, aerospace, and food, a bad barcode wastes time and jeopardizes audit trails, traceability, and safety compliance. Even internal company audits are becoming more stringent as leaders recognize that label integrity directly affects profitability.

Most organizations assume that if a barcode prints and scans, it’s compliant. Unfortunately, that’s not always true. Barcodes are graded on quality metrics such as contrast, edge definition, and character accuracy. A barcode might work fine on your internal scanners but fail on a partner’s system, leading to downstream errors or fines. Most of these losses stem from poor print quality and lack of verification. Without real-time validation, these problems often go unnoticed until they cause a disruption or a fine.

From verification to validation

That’s why barcode verification (not just scanning) has become essential. Verification technology ensures that every barcode meets the required print quality standards before it leaves the facility. This is especially important for companies supplying large retailers or government entities, where compliance is nonnegotiable.

Advancements in barcode technology, like real-time barcode verification and validation systems, are changing how companies approach labeling quality. Unlike traditional printers, these systems automatically grade every barcode, verify that it meets ISO and GS1 standards, and reprint any label that fails. That means unreadable or noncompliant barcodes never leave the printer, dramatically reducing chargebacks, shipping delays, and compliance risk.

For engineers and IT leaders, integration is seamless. These smart printing systems communicate directly with enterprise labeling software and warehouse management systems (WMS), feeding real-time verification data back into your audit trail. Every barcode printed is scannable and verifiably compliant, a crucial distinction as we enter the next era of labeling.

The difference between 1D and 2D barcodes

The global standards body GS1 is leading a sweeping transformation that will make 2D barcodes the new standard across retail and manufacturing by 2027.

Traditional 1D barcodes (like UPCs or EANs) hold a limited number of data, typically just a product identifier. They must be linked to a database to retrieve information such as price, batch, or expiration date. They also rely heavily on clear print quality and contrast, meaning even slight damage, smudging, or poor alignment can make them unreadable.

By contrast, 2D barcodes (such as QR codes or GS1 DataMatrix codes) can store significantly more information directly within the symbol, including expiration dates, batch or lot numbers, and even traceability or sustainability data. They can be scanned from any angle, decoded even with partial damage, and often read reliably in lower contrast or challenging lighting conditions.

This makes 2D barcodes far more resilient to the kinds of print-quality issues that plague 1D barcodes, while also empowering companies with richer data for compliance and transparency.

What is Sunrise 2027?

Sunrise 2027 is the GS1’s global initiative to transition industries toward 2D barcodes at the point of sale (POS) and throughout the supply chain by the year 2027. The goal is to enhance transparency, traceability, and efficiency across global commerce by replacing or supplementing 1D barcodes with 2D symbols capable of carrying more product data.

This change affects manufacturers, retailers, logistics providers, and technology vendors—essentially anyone who prints, scans, or processes barcodes. Although GS1 isn’t a regulatory agency and can’t “mandate” compliance, Sunrise 2027 will become the industry standard. That means trading partners, retailers, and marketplaces will increasingly require 2D-capable barcodes to ensure interoperability and compliance.

To help organizations prepare, GS1 US has introduced the Barcode Capabilities Test Kit, which helps evaluate current hardware and software readiness. Early testing has revealed widespread issues, such as scanners not configured for 2D, POS systems unable to store additional GS1 data, and incomplete processing of encoded information.

In other words, many companies are blatantly not ready. But they need to be soon.

Why verification matters now more than ever

As the industry transitions to 2D barcodes, verification technology becomes crucial. A blurred, damaged, or unverified label won’t only slow a dock door. It could also disrupt entire supply chain networks relying on that embedded data for compliance, traceability, and consumer safety.

For businesses printing thousands of barcodes daily, automated grading and verification systems provide confidence that every label meets the changing standards, whether it’s a 1D UPC today or a 2D QR code tomorrow. This proactive step ensures that companies remain ahead of Sunrise 2027’s compliance requirements while safeguarding against fines and shipping errors.

The ROI for getting it right

The return on investment for real-time barcode verification is substantial. Companies that have adopted verification technology report dramatic reductions in internal fines, chargebacks, and compliance penalties. Beyond the immediate financial savings, verified barcodes improve supply chain visibility, increase throughput at the dock, and eliminate the time wasted troubleshooting bad scans.

For example, a single large facility processing 10,000 labels per day could easily prevent hundreds of unreadable barcodes weekly. Avoiding even one compliance find or shipment delay can justify the cost of verification technology in months.

Alternatively, those that delay verification and labeling modernization risk falling behind rapidly. As more trading partners and retailers adopt 2D-ready systems, suppliers with noncompliant labels could face rejected shipments, internal penalties, or delisting. Those disruptions can cost far more than the technology investment needed to prevent them.

Building a culture of barcode integrity

Overall, barcode quality isn’t solely a printing issue. It’s also a data integrity challenge. Companies that treat labeling as a mission-critical process, rather than an afterthought, are protecting their bottom line. Engineering teams, IT departments, and operations leaders must collaborate to ensure that barcode printing and verification technologies are properly implemented, maintained, and audited.

By investing in real-time verification and quality validation systems, companies can turn a once-overlooked operational detail into a competitive advantage. While unreadable barcodes may seem like a small problem, in a world driven by data and compliance, every unreadable label is a liability. With the right technology and processes, it doesn’t have to be.