GS1 is a non-profit organization that develops and maintains global standards for business communication, including the widely known UPC barcodes. Now, GS1’s Sunrise 2027 initiative is reshaping how supply chains operate. The requirement states that, by 2027, all consumer-facing products must carry a 2D barcode, such as a QR code, instead of a traditional UPC. Major U.S. retailer Dillard’s CTO has already confirmed that non-compliant items may be kept off shelves. Walmart and other major retailers are expected to follow.
QR codes allow for real-time data, flexible routing and dynamic communication across the product lifecycle. For supply chain teams, this shift opens the door to capabilities that legacy barcode systems were never equipped to handle.
QR Codes are Already Delivering Supply Chain Value
Some companies are treating the new mandate as simply swapping one barcode for another. Others are leveraging QR codes to gain better visibility into their supply chains, as well as to reduce waste and improve accuracy. The key difference is understanding what QR codes can actually do.
QR codes can carry information that changes as the product moves. From lot-level data and routing instructions to regional sustainability guidance, this dynamic layer of intelligence can be tapped at any point in the supply chain with a quick scan.
GS1’s Digital Link standard ensures that each code links to a web-based record that can be updated in real time, and accessed by anyone with a mobile device or scanner. That turns a simple label into a live connection between physical products and your backend systems.
Traceability Becomes Instant and Portable
QR codes embed traceability data right into product labels, so a quick scan reveals batch numbers, expiration dates and regulatory details. Warehouse workers, drivers, retail teams and consumers all access the same up-to-date information without needing to tap into internal systems or databases.
This reduces friction in sectors where traceability is required, including food, pharmaceuticals and cosmetics. When a recall or quality issue arises, the response is faster and far more precise. Teams can identify exactly which units are affected, where they are and whether they’ve already reached the shelf.
Even for non-regulated products, being able to track a faulty batch, verify authenticity or see where it was made helps brands solve problems faster and build more trust.
Smarter Returns with Fewer Exceptions
Returns are one of the biggest sources of friction in retail logistics. QR codes are helping brands simplify the process without creating new packaging layers. Dynamic codes can assign return instructions after the point of sale, letting each product guide the customer to the right return steps for their location, with the latest instructions and nearby drop-off options.
Because the return data is linked to the product, teams gain instant visibility into return volume, reason codes and product conditions. This allows for faster triage, fewer errors and better planning across reverse logistics networks.
Packaging Compliance without Reprints
As Extended Producer Responsibility (EPR) laws take hold across Europe and parts of North America, packaging teams are under pressure to meet complex recycling, disposal and labeling rules. QR codes allow brands to provide this information digitally and contextually.
Instead of printing five versions of packaging for different countries or languages, brands are assigning a single QR code that changes its destination based on the user’s location. So, a French customer receives French-language recycling instructions while an American one sees local disposal guidance or a digital warranty form — all from the same printed code.
Major CPG brands are testing this approach now. It reduces packaging complexity and helps brands stay ahead of regulatory changes without slowing time to shelf.
Routing and Inventory Updates During Transit
Static labels create bottlenecks in transit. When an order changes mid-shipment, or a route is adjusted, teams typically need to reprint and reapply labels or manually update systems.
But with dynamic QR codes, the code itself remains the same while the embedded data can be updated during transit. A truck rerouted to a different warehouse or a product moved from bulk to retail packaging can carry the update directly on the label. The scan works. The data is current. No relabeling is needed.
Teams reduce relabeling costs, eliminate avoidable delays and give last-mile workers access to the most accurate information.
How to Prepare for Implementation Challenges
Despite the advantages, QR implementation does come with real challenges. For example, label placement and design need to evolve. QR codes require clear space and consistent printing to ensure they scan properly across a range of devices and environments.
But the real work is on the data side. Product information needs to be standardized, centralized and structured to support dynamic links. Teams need to coordinate across operations, IT, marketing and compliance to ensure the right data is captured and served up accurately.
Retailer support is improving, but not yet universal. Many will expect brands to support 1D and 2D labels for at least the next two years. Maintaining both systems in parallel will be necessary, but starting now creates more room for learning, testing and internal alignment.
Once the updated system is in place, it’s easy to add new functionality. Authentication, warranty registration, and even ESG data can all be stored behind the same scannable code. Many early adopters are already laying the groundwork for broader product digitization, like digital passports or real-time compliance tracking.
What Logistics Teams Should Do Now
Start with one high-value use case. Choose a product where traceability, returns or packaging complexity are already challenges. Build a QR-enabled label that connects to accurate, structured data, and use GS1 Digital Link as your technical guide to ensure retail compatibility.
Next, pressure test it in real-world settings with the teams who will actually use it — warehouse leads, retail partners, customer service and quality assurance. Use these learnings to refine the process before expanding.
Coordinate now with your retailers to understand their scanning timelines. Then, update print specs, label placement guides and system integrations to accommodate both 1D and 2D formats during the transition.
The 2027 deadline is approaching, but teams that start now will have a competitive advantage. Treat QR codes as an infrastructure upgrade, not a compliance afterthought.
Ravi Pratap Maddimsetty is co-founder & CTO of Uniqode.