Inventory teams know the drill—misplaced shipments, wasted hours chasing product details, and the limits of one-dimensional barcodes that barely offer more than an identity document (ID) number.
These everyday annoyances don’t just slow things down; they add to bigger inefficiencies that choke the supply chain.
Businesses should revolutionize inventory management with GS1 QR codes for retail. They have the same scanning process but pack way more data into every code.
This breakdown compares them to traditional barcodes, highlighting their technical advantages and real-world impact in retail, manufacturing, and distribution.
What is inventory management?
Inventory management involves tracking goods as they move through the supply chain. The system ensures that the right products are in the right place, at the right time, and in the right quantity.
When done well, it keeps operations running smoothly. When done poorly, it leads to delays, stock shortages, or excess inventory collecting dust.
At its core, inventory management controls the flow of goods from suppliers to customers. While the principles remain the same, what is tracked varies by industry.
In manufacturing:
- Raw materials: Steel, fabrics, components
- Work-in-progress: Partially assembled products
- Finished goods: Ready-to-ship products
In retail & distribution:
- Merchandise inventory: Products ready for sale
- In-transit stock: Goods currently being shipped
- Safety stock: Backup inventory for demand spikes
- Seasonal inventory: Holiday or limited-time products
How is inventory management done today?
Inventory management has come a long way from manual spreadsheets and handwritten logs. Modern inventory management largely relies on barcode scanning for efficient stock tracking, replacing manual methods and minimizing errors.
The process involves:
- Labeling:Products get UPC/EAN barcodes with basic tracking information (stock keeping unit (SKU), price, category).
- Receiving:Scanning incoming stock updates inventory in real time.
- Storage:Scanned items are organized, often with barcoded locations for easy tracking.
- Order Fulfillment:Scanning ensures accurate picking before shipping.
- Audits:Regular cycle counts using scanners verify stock accuracy without full shutdowns.
- Sales & Replenishment:Checkout scans update stock; low levels can trigger automatic reorders.
Limitations of using UPC, EAN, and other 1D barcodes for inventory management
UPC (Universal Product Code), EAN (European Article Number), and other 1D barcodes are useful for basic product identification but fall short of modern inventory tracking. Here’s why:
1. Limited data and lack of specificity
A 1D barcode typically holds just a Global Trade Item Number (GTIN), and that’s it. You must maintain a separate database if you need to track expiration dates, batch numbers, or serial numbers.
This setup isn’t just clunky—it’s a breeding ground for mismatches and delays, especially when quick decisions rely on precise data.
2. Fragile and alignment-dependent scanning
1D barcodes require clean, undamaged surfaces and proper alignment to scan. Any wrinkle, scratch, or faded ink can block the scan entirely.
Workers often have to manually adjust product positions just to get a read. Now multiply that by hundreds of items per hour. It’s a time-sink.
These barcodes also degrade in real-world conditions—heat, moisture, and rough handling. They’re not built to survive the same environments your inventory often has to.
3. Static data, no real-time feedback
Once printed, the data in a 1D barcode doesn’t change. It doesn’t track temperature shifts, log location changes, or give real-time inventory visibility. You’re always playing catch-up with external systems, trying to fill those gaps.
What is a GS1 QR code?
Global Standards 1 (GS1) is a non-profit organization that develops and maintains standards for business communication—most famously, the barcode.
However, given the limitations of 1D barcodes, the organization initiated Sunrise 2027 to future-proof systems and industries with two-dimensional barcodes like QR codes, which already have the proven ability to hold different kinds of information.
But unlike the QR codes that contain a link or plain text, a GS1 QR code follows globally recognized standards. It carries standardized product data and is readable by machines, including smartphones.
It’s built to embed meaningful, machine-readable product data—like a GTIN, expiry date, or batch number—in a consistent format across systems and borders. It’s a smart QR code that speaks the structured language of supply chains.
How is it different from a standard QR code?
A regular QR code might point to a website or a PDF file; it has no structure. However, a GS1 QR code uses a standardized format called Digital Link.
This organizes product information (such as GTINs, lot numbers, and expiration dates) into a URI that systems can consistently interpret.
Example:
https://id.gs1.org/01/09506000134312/10/ABC123
Here, 01 is the GTIN, and 10 is the batch number. Machines identify what’s what.
Key aspects to revolutionize inventory management with GS1 QR codes for retail:
✅ Holds More Info: Way more than your typical 1D barcode. Think of alphanumeric data, expiration dates, and URLs.
✅ Globally Readable: Any system built on GS1 can read it. No proprietary weirdness.
✅ Dual Use: One code serves both your customer’s phone and your warehouse’s scanner.
✅ Dynamic Pages: The QR stays the same, but you can update the web content it links to—no reprinting is needed.
What changes with GS1 QR codes in inventory management, and what stays the same?
Industries and businesses that revolutionize inventory management with GS1 barcodes are able to see an increase in efficiency.
Adopting QR codes that follow GS1 standards, however, does come with upfront adjustments. Equipment may need upgrades, and software might need tweaks. It’s not a minor patch—it’s a shift.
But over time, the long-term value outweighs the setup cost. Efficiency improves, errors drop, and data becomes richer and more actionable.
What chaznges
- Scanning speed improves:GS1 Digital Link QR codes don’t require perfect alignment, and even slight damage won’t disrupt readability.
- Data capture goes deeper:You’re not just identifying a product—you’re scanning expiration dates, batch codes, and serial numbers.
- Real-time traceability becomes possible: The link allows updates behind the code without altering the physical label.
- Reduced Error rates:QR codes are more resilient in rough environments—fewer failed scans and less manual correction.
What stays the same
- Scanning remains central:Stock-taking, goods-in, and dispatch workflows still rely on barcode scanning as the trigger point.
- Hardware still matters:While the format changes, the need for compatible scanners and inventory systems remains.
- The bottom line: GS1 QR codes modernize how inventory data is captured and used—without upending the fundamental process. It’s a smarter foundation, not a new set of rules.
A smarter inventory management
Inventory systems aren’t just about counting boxes anymore. They’re expected to deliver precision, speed, and traceability—all at once. The QR codes don’t magically fix everything, but they do solve a big chunk of what’s broken with traditional barcodes.
By carrying structured, scan-ready data, they reduce friction at nearly every point: receiving, tracking, stock-taking, and even recalls.
And because they follow a global standard, they speak the same language—whether scanned in a warehouse in China or a retail store in Toronto.
Now you know how to revolutionize inventory management with GS1 QR codes for retail.
Sure, it’s a shift, but one rooted in practicality, not just tech hype. It’s not the future—it’s smarter now.