Alice Rackley, CEO of Polytag, explains how the evolution in barcode technology can make packaging supply chains smarter and increase visibility.
It’s a common misconception that circularity simply equals recycling more. Instead, think of the supply chain as a never-ending game of “pass the parcel”.
To achieve a circular fast-moving consumer goods (FMCG) economy, we must carefully assess each step, especially the industry’s role in delivering products to consumers and reclaiming them for recycling and recovery. This requires better connectivity and optimisation across the chain.
The FMCG industry must focus its efforts on bridging the gaps between retailers and consumers, and more crucially, recovery facilities. This means not only delivering products but responsibly managing the product’s end-of-life.
Every element of the chain needs to be examined, and that is why even established systems, such as the standard barcode, are being replaced.
The barcode has undoubtedly served us well, but I’m pleased that we’ve finally started looking at new technologies that can provide even more benefits across the entire value chain. As the saying goes, “just because it works, doesn’t mean it can’t be improved”.
Supply chain packaging: Beyond the basics
For decades, the standard barcode has served the FMCG industry as a reliable, albeit limited, tool for product identification. However, as the demands of modern retailers have evolved, so too must packaging and its components.
While it has its benefits, the traditional barcode also has inherent limitations – the use of valuable label space, limited data, and its sole point of sale function – which have restricted its potential.
Enter 2D barcodes that enable traceability and transparency in today’s rapidly evolving world – a game changer for brands and retailers.
Ticking all the boxes, these advanced codes – QR and GS1 Data Matrix codes – unlock new avenues for information sharing, consumer engagement and supply chain visibility, fostering a more informed and connected ecosystem.
The key to a smarter supply chain
Last year, GS1, the global standards organisation, announced Sunrise 2027, the move to implement 2D barcodes at point-of-sale (POS) and point-of-care (POC) systems in the next two years.
Leading brands in the FMCG market are on board, having already marked their commitment. Its recent report, “The Next Generation of Barcodes: QR Codes,” outlines the transformative potential that QR codes have in improving supply chain traceability, enhancing efficiencies, ensuring product safety and delivering valuable information to consumers.
From real-time inventory management to enhanced recall capabilities and personalised consumer experiences, the opportunities are vast. The shift from 1D barcodes is well underway, paving the way for a more data-rich supply chain.
When added to packaging, QR codes enable brands to tap into direct-to-consumer marketing tactics. Beyond streamlining retail operations, they provide a convenient channel to deliver targeted messaging, product details and interactive experiences.
Brands can leverage QR codes to share everything from ingredient provenance and recycling instructions to sustainability initiatives and exclusive loyalty programmes, placing a wealth of valuable information directly into consumers’ hands.
This is especially crucial as packaging becomes smaller, more compact and more sustainable, leaving brands increasingly less room for key messaging and information.
Winning consumer trust
Research supports this shift – there is a clear and growing majority of consumers who recognise and appreciate the effectiveness of QR codes, particularly their significant impact on engagement and marketing return on investment (ROI).
Two-thirds (67%) of consumers stated that connected packaging fosters customer loyalty through personalisation, while 59% said it enhances direct customer communication.
Data also shows engagement is not only earned but sustained with 2D barcodes, and we see this ourselves. Our GS1-approved QR codes increase landing page dwell time by seven times, indicating that consumer interest in new technologies does translate into sustained engagement.
As such, QR codes are being increasingly adopted by brands thanks to solidify their messaging and build lasting relationships.
Strengthening EPR
Looking at the wider picture, to create a truly circular economy, integrating these technologies with the required, supportive legislation is crucial. 2D barcodes provide real-time data, enabling brands to track products with unprecedented accuracy throughout their lifecycle.
However, some policies, such as the current Extended Producer Responsibility (EPR) criteria, often lack clarity and fail to incorporate such innovations effectively, potentially slowing progress across the supply chain.
If the UK’s EPR programme is to drive real impact, policymakers and the industry must work together closely; 2D barcodes can act as the link between evolving regulatory requirements and the challenges brands face in achieving sustainability goals.
