Research Report

Advancing Intelligent Data Capture in Modern Logistics Operations

Driving Digital Transformation and ROI Through Migration From 1D to 2D Barcodes

Logistics teams are under pressure to move faster, share better data, and support traceability. While many operations are contemplating a shift beyond legacy 1D-based workflows, phasing in data-rich 2D barcodes can reduce avoidable costs from rescans and labeling errors, improving productivity and consistency. 

This VDC Research report, commissioned by GS1 US®, explains how intelligent data capture—such as 2D barcodes and global standards—can modernize warehouse workflows, improve data quality across trading partners, and prove a tangible return on investment.

The research is based on a survey of 400 U.S.-based Tier 1–2 organizations (primarily 501–10,000+ employees), along with 10 in‑depth interviews with senior logistics, operations, IT, DC/warehouse, and traceability decision‑makers conducted in Q3/Q4 2025.

Image collage of two people. One person is scanning a product with their phone. Another person is smiling and holding a clipboard.

The Journey to 2D: Fundamentals That Power Smarter Barcodes

The barcode is evolving, and Sunrise 2027 marks a major milestone in that journey. During this free webinar, GS1 US experts will explore what’s changing, why it matters, and how you can prepare. Join us to discover how to deliver seamless consumer experiences, boost supply chain efficiencies, and make 2D a reality for your business.

This Report Provides Insights On:

  • Where 1D‑centric receiving, picking, and shipping workflows begin to strain as attribute‑level requirements—such as lot, expiration, and serial—become essential

  • How 2D barcodes consolidate identification into a single symbol—reducing label clutter and improving first‑pass read rates

  • What a practical 1D‑to‑2D migration roadmap can include, from readiness assessment and system updates to training and dual labeling during the transition

  • How to build a value case using your own operational inputs, including scan volume, labor rates, relabeling, and shipment errors 

ROI Calculator: Quantify the Value of 2D Barcodes

The research includes a practical ROI calculator designed to estimate the operational cost impact of migrating from a 1D-dominant to a 2D-dominant barcode infrastructure.

The model compares baseline costs under legacy workflows with projected improvements enabled by 2D barcodes—such as higher scan reliability, less relabeling, and fewer shipment errors.

Take the Next Step

Use the cost‑benefit calculator to estimate potential operational savings for your facility—and explore how intelligent data capture can support your modernization strategy.

By adjusting key inputs—such as labor rates, scan volumes, and error rates—you can estimate potential annual savings at the facility level and support informed, data‑driven investment decisions.

 

Cost Driver Examples in Logistics Operations

Mishipments are the largest cost drivers

$696K/year in shipment errors

Scan failures create hidden labor drag

$87.8K/year in rescan labor

Relabeling is recurring rework (labor + materials)

$31.9K/year in relabeling labor

Compliance/traceability raises the cost of bad data

3% preventable inventory loss

Note: The “Average Values” inputs are survey‑weighted averages from respondent facilities; all annualized $ estimates are derived from those inputs using the calculator’s stated assumptions (labor rate, operating days, shifts, and unit costs).

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