GS1 Sunrise 2027: Transition to 2D Barcodes for Global Commerce

Nov 30, 2024
 Barcode

For decades, the EAN/UPC barcode—a one-dimensional (1D) barcode—has been the cornerstone of price lookup functionality. However, as global commerce evolves, the limitations of 1D barcodes in meeting demands for enhanced transparency, traceability, and authentication have become apparent. To address these challenges, the supply chain is shifting to two-dimensional (2D) barcodes, capable of carrying significantly more information.

This transition, known as Sunrise 2027, sets a deadline for retailers to upgrade their point-of-sale (POS) or point-of-care (POC) systems to accommodate both traditional and 2D barcodes. Already in testing across 48 countries, this initiative is poised to modernize product identification, encompassing regions that account for 88% of the global GDP.

The GS1 Sunrise mandate represents a significant development aimed at evolving product data accuracy and supporting the adoption of two-dimensional (2D) barcodes. This guide explores the key aspects of the GS1 Sunrise 2027, including its objectives, global implications, and actionable insights for businesses.

Understanding GS1 and Its Role in Global Commerce

GS1 is a global organization that has long set the foundation for standardized product identification and tracking across industries. The organization’s barcode and data standards support seamless data flow, enabling stakeholders in the supply chain to share critical information accurately and efficiently. Key GS1 standards include Global Trade Item Numbers (GTINs), barcodes, and Radio Frequency Identification (RFID) tags, all of which contribute to transparency, traceability, and interoperability across the global supply chain.

What is GS1 Sunrise?

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GS1 Sunrise is a global initiative to enhance product data accuracy, traceability, and transparency in response to the evolving needs of modern supply chains. The mandate, officially known as “Sunrise 2027,” sets forth requirements for businesses to adopt 2D barcodes, such as DataMatrix codes, at the point-of-sale (POS) or point-of-care (POC). Unlike traditional 1D EAN/UPC barcodes that primarily support price lookup, 2D barcodes can store more complex product data, including batch numbers, expiration dates, and other details relevant to consumer safety and product quality.

The scope of GS1 Sunrise spans multiple industries and geographic regions, with an industry-wide compliance target set for the end of 2027. Already being tested across 48 countries representing 88% of global GDP, this transition to 2D barcodes signifies a comprehensive shift aimed at modernizing product identification.

Why GS1 Sunrise Matters: Key Benefits

The GS1 Sunrise initiative offers substantial benefits across different industries:

For Manufacturers

Manufacturers benefit from improved product traceability, reduced counterfeiting, and enhanced brand credibility. The richer data captured in 2D barcodes enables more precise inventory tracking and quality control, which is critical for ensuring safety and compliance.

For Retailers

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Retailers gain the ability to improve customer experiences with detailed product information available at POS. Additionally, they can optimize inventory management, reduce shrinkage, and offer enhanced authentication of products, leading to increased customer trust.

For Consumers

Consumers are provided with greater transparency. They get access to key product information such as origins, batch numbers, and expiration dates via a simple scan. This empowerment allows for informed purchase decisions, particularly in the food, healthcare, and electronics sectors.

For Governments and Regulators

For regulatory bodies, GS1 Sunrise supports public safety by improving product traceability, enhancing recall effectiveness, and supporting compliance with evolving regulatory standards.

Key Components of the GS1 Sunrise Mandate

GS1 Sunrise outlines specific requirements to ensure a standardized, global approach to 2D barcode adoption:

  1. Standardized Data Requirements: Accurate data capture and format standardization are crucial for seamless scanning and data exchange.
  2. Barcode Requirements: Businesses must adopt 2D barcodes, which allow for storing richer product information than traditional 1D barcodes.
  3. Labeling and Serialization Requirements: Each product must include a unique identifier to facilitate easy tracking and recall.

GS1 Sunrise Implementation Phases

To guide businesses through the transition to 2D barcodes, the GS1 Sunrise 2027 initiative is organized into three distinct implementation phases:

Phase 1: Introduction and Voluntary Adoption

The first phase focuses on raising awareness and encouraging businesses to voluntarily adopt 2D barcode technology. During this phase, companies can upgrade their internal systems to support GS1 standards while experimenting with dual-labeling solutions, including both traditional and 2D barcodes. Retailers and manufacturers are invited to participate in pilot programs and collaborate with GS1 member organizations to test and refine the new technology.

Phase 2: Mandatory Compliance for Specified Product Categories and Regions

In this phase, compliance becomes mandatory for certain industries and regions where regulatory and operational readiness align. Businesses operating in these areas will need to ensure their systems meet the new GS1 Sunrise standards. This phase emphasizes upgrading point-of-sale (POS) systems and ensuring supply chain partners are equipped to handle the increased data requirements of 2D barcodes, such as DataMatrix and QR codes.

Final Phase: Full Compliance and Integration with Industry Regulations

By the end of 2027, all eligible businesses must fully comply with the GS1 Sunrise standards. This phase involves the complete integration of 2D barcodes into global operations, replacing traditional UPC/EAN codes entirely where applicable. Continuous updates and alignment with industry regulations will ensure the new standards remain relevant. Organizations are expected to embed these technologies into their routine operations to facilitate smarter data capture and improve supply chain efficiency.

This phased approach allows businesses to adapt progressively, minimizing disruptions while maximizing the benefits of smarter, more comprehensive data management.

Potential Challenges and Solutions

While GS1 Sunrise offers clear advantages, its implementation presents certain challenges:

  1. Costs of Implementation: Transitioning to 2D barcodes as part of the GS1 Sunrise 2027 initiative requires significant investment in technology upgrades and infrastructure changes. Businesses must update POS systems and adopt new scanning devices capable of reading both traditional and 2D barcodes. To address this, companies can adopt the phased implementation approach, spreading the cost over several years.

  2. Data Management: 2D barcodes provide the capability to encode a vast amount of dynamic data, such as batch numbers, expiry dates, and URLs. Managing this data securely and ensuring accurate formatting can be complex. Businesses need to invest in advanced data management tools and integrate them with their existing systems. Collaborative efforts with GS1 and solution providers can offer customized recommendations and reduce complexities.

  3. Training and Change Management: The shift to 2D barcodes impacts various business functions, requiring comprehensive training for employees in retail, manufacturing, logistics, and other sectors. Structured training programs tailored to different roles are essential to ensure a smooth transition. Additionally, ongoing communication about the benefits of the new system and practical demonstrations of its functionality can foster employee buy-in.

Preparing for GS1 Sunrise: Practical Steps for Businesses

Businesses preparing for GS1 Sunrise should consider the following steps

  1. Assess Current Systems: Evaluate your existing barcode infrastructure, point-of-sale (POS) systems, and data management processes. Determine whether your hardware and software can handle 2D barcode scanning. Identify gaps in your systems that could hinder a seamless transition and prioritize upgrades to support dual-scanning capabilities for 1D and 2D barcodes during the initial phases of the GS1 Sunrise rollout.

  2. Engage with GS1 Resources: Leverage GS1’s expertise and resources to understand the technical and operational requirements of the Sunrise 2027 initiative. Stay updated on guidelines for implementing 2D barcodes, including DataMatrix codes and QR codes. Participating in GS1 webinars, training sessions, and pilot programs can provide invaluable insights into the global shift.

  3. Develop a Compliance Roadmap: Design a detailed, phased plan for transitioning to 2D barcodes. This roadmap should outline budgets, timelines, and resource allocation for system upgrades, employee training, and compliance testing. Factor in industry-specific requirements and the evolving standards for data encoding, serialization, and labeling.

  4. Collaborate with Partners: Transitioning to 2D barcodes requires coordination across the entire supply chain. Engage with manufacturers, retailers, and logistics providers to standardize data exchange protocols and ensure interoperability. Collaborative efforts can help streamline operations and reduce the risk of errors or delays in implementing 2D barcode technology.

How Dynamsoft Can Help with GS1 Sunrise Implementation

Dynamsoft provides cutting-edge solutions that empower businesses to meet the GS1 Sunrise 2027 requirements effectively. Dynamsoft Barcode Reader SDK offers advanced capabilities to support the transition from 1D to 2D barcodes, ensuring fast and accurate 2D barcode decoding. Here’s how Dynamsoft’s solutions align with GS1 Sunrise goals:

  1. Barcode Scanning Solutions: Dynamsoft Barcode Reader (DBR) SDK is designed to handle both 1D and 2D barcodes, including QR codes and DataMatrix formats mandated by GS1 Sunrise. With high-speed and accurate scanning capabilities, it ensures businesses can capture and decode complex data, even in demanding environments.

  2. Data Management and Integration: The Dynamsoft Barcode Reader SDK enables seamless integration of captured barcode data into ERP systems. This helps with easy tracking of batch numbers, expiry dates, and other dynamic data, critical for maintaining operational efficiency under GS1 Sunrise standards. 

  3. Training and Support: Dynamsoft offers extensive training resources and dedicated support to assist businesses in implementing its Barcode Reader SDK. By equipping teams with the knowledge and skills to handle new technologies, Dynamsoft ensures a smooth adoption of GS1 Sunrise-compliant systems.

Contact Dynamsoft to Get Started

The GS1 Sunrise initiative marks a transformative step toward a more transparent, traceable, and efficient global supply chain. By transitioning to 2D barcodes, businesses can enhance data accuracy, improve customer experiences, and meet modern regulatory demands.

As the 2027 deadline approaches, partnering with a solution provider like Dynamsoft can simplify the path to compliance and ensure a smooth, cost-effective transition. Contact our experts today to learn more about how Dynamsoft solutions can support your GS1 Sunrise implementation journey.