The Future of Grocery Retail: 2D Barcodes and IoT

July 15, 2024

The Future of Grocery Retail: 2D Barcodes and IoT

A head of lettuce is tracked and traced long before it arrives at the grocery store. From growing to transport to distribution to the grocer’s shelves and, finally, to the consumer’s table, smart technologies allow us to track goods and access a nearly full scope of data for grocery products. 2D barcodes and the Internet of Things (IoT) make recording, tracking and reviewing this data easier than ever –– for consumers and businesses in the grocery sector. 

Read on to learn more about how this technology improves your operations at every step, all the way through post-purchase for the consumer.  

 

Exploring the Impact of Smart Technologies on Product Interactions in the Grocery Sector

 

The pandemic forever shifted consumer shopping habits. We now operate in an omnichannel retail setting, where shoppers can (and expect) to have virtually unfettered access to product information. Where is this access most strongly demanded? The grocery store shelves.  

Shoppers want more information about the products they’re buying. They want sourcing transparency, quality assurance and even information on company values. But shoppers aren’t the only ones wanting more data. 

Food and grocery distributors understand the accuracy and efficiency afforded by 2D barcodes. From inventory to food safety and product orders to positive customer experiences, smart technologies like 2D barcodes and IoT capabilities influence every aspect of the grocery sector. 

 

What is a 2D Barcode, and Why Should You Use It? 

 

In an age where data is king, 2D barcodes are indispensable tools for manufacturers, distributors and consumers. 2D barcodes are scannable squares that store far more information than a traditional barcode or product packaging. 

1D barcodes provide basic product information, but 2D barcodes include an expansive wealth of data, including 

  • The Global Trade Item Number (GTIN)
  • Detailed product descriptions
  • Expiration dates 
  • Websites and landing pages 
  • Rich content, including images and audio 
  • And much more…

Implementing 2D barcodes on your grocery products gives shoppers the information they want in an unexpected experience. 

With a quick scan, consumers can access product information in a rich content format that solidifies their confidence in the product and your brand. 

Providing grocery content is crucial in the current omnichannel retail landscape. 87% of shoppers use their phones to research products while shopping in-store. The convenience of 2D barcodes empowers shoppers with knowledge and confidence and delivers a rich, immersive shopping experience. Early adoption gives your organization a competitive edge in a sector where differentiation is critical to success. 

 

Enhanced Supply Chain Visibility 

 

Innovative technologies play a crucial role in grocery supply chains. The GTIN embedded within the barcode allows you to track products through every node in your supply chain network, from suppliers to distribution centers to the store. 

This tech enables real-time visibility, enhancing inventory procedures while reducing manual handling, which can damage produce and other grocery items. 2D and IoT technologies empower food retailers with the data to make informed supply chain decisions. Mitigate loss, optimize transportation routes and modes and ensure your product is delivered on time and in quality condition. 

 

Increasing Picking and Packing Quality 

 

Warehouse efficiency is a critical aspect of inventory management in the grocery sector. Inaccuracies and inefficiencies at this stage affect costs throughout the supply chain. If inventory can be managed appropriately from the first steps of production, everyone saves time and money. 

2D barcodes offer a powerful and versatile solution for grocery inventory management. A simple scan helps ensure packers accurately pick products, reducing waste, unfulfilled orders and the costs of correcting picking and packing mistakes. 

Placing a barcode on your goods provides access to the GTIN, batch numbers, expiration dates, unique product ID and more. And because 2D barcodes can be scanned from any angle, warehousing staff can increase speed without sacrificing accuracy. 

 

Predictive Analysis and Automated Ordering 

 

Forecasting demand helps set expectations for growers, distributors and retailers. Predictive analysis gleans sales patterns and seasonal trends captured in the historical data from 2D barcode scans. Grocery retailers can then use this data to anticipate fluctuations in demand to ensure appropriate inventories, improving supply chain efficiency and the customer experience. 

The IoT allows retailers to track products as they move, including how quickly and to where they’re moving. Analyzing patterns in inventory movement allows for ordering and product replenishment at the right time. Retailers can use these tools to automatically place orders when stock levels reach specified thresholds. An automated process like this optimizes order timing and product delivery, improving inventory management and reducing costs associated with over- and under-supplying. 

 

Enhance Food Safety

 

Ensuring consumer safety is a primary responsibility of the grocery sector. Product and data tracking enabled by 2D barcodes and the IoT helps increase product quality and customer safety. When food recalls occur, the tracking data provided by these tools allows retailers to act quickly to remove affected products from the shelves. 

U.S. food recalls were up 8% in the first quarter of 2024 from the last quarter of 2023. Memphis-based research organization Sedgewick counted 909 recalls during this period, the highest number in five years. Bacterially contaminated foods, undeclared allergens and even foreign objects in food are all causes of recalls. 2D barcodes allow businesses to quickly, safely and thoroughly remove damaged and tainted grocery products from the supply chain. 

These codes also provide critical safety information to consumers after the recall. Businesses can deliver updates to consumers via a barcode scan, allowing shoppers to determine if their purchases were affected and how to proceed. 

 

Giving Shoppers the Power of Knowledge 

 

Retailers have more information than ever on every grocery product on their shelves, including sourcing, production, transportation and many, many more data points. Consumers want access to this information. 

When it comes to grocery products, shoppers expect accurate product information. They want the data in their hands to make informed purchase decisions. 2D barcodes give shoppers access to the product data and details that matter most to them. And all it takes is a click from their phones. 

Using their smartphone camera, shoppers can instantly explore detailed product information: 

  • Ingredients 
  • Allergens 
  • Nutrition 
  • Sourcing 
  • Recipes
  • Usage instructions 
  • Sustainability commitments and more

This product information isn’t merely valuable data for the shopper. The presence or absence of this content can mean the difference in a sale made or a sale lost. The bottom line is that 2D barcodes will help you sell more in-store

Consider the impact of sustainability initiatives in grocery sales. 83% of Americans are concerned about the environmental effects of the products they buy. With greenwashing as an increasing tactic used to market to environmentally-conscious consumers, grocery brands and companies must earn the trust of shoppers who prioritize sustainability. 2D barcodes allow these brands to highlight their sustainability commitments and prove that their values align with the consumer’s. Shoppers are more likely to buy from brands whose values align with their own. Highlighting shared values in your product information cultivates customer relationships that lead to a sale and long-term loyalty.   

 

Post-Purchase Consumer Engagement 

 

2D barcodes play a crucial role in loss prevention at the point of sale. They play an equally vital role in consumer engagement post-purchase. Brands can provide a plethora of data and information relevant to customers, including loyalty rewards programs, recycling instructions, recipe ideas, etc., that deliver a positive, interactive experience after the sale. 

 

Wrapping Up 

 

Consumer shopping behaviors and product information expectations are shifting. 2D barcodes, the IoT and other smart technologies allow businesses within the grocery sector to cater to consumer demands while recording, maintaining and evaluating relevant product data. Adopting these tools as the omnichannel retail space evolves empowers players in this industry to thrive. 

1WorldSync is working with our customers to ensure they are prepared to adopt 2D barcodes on their product packaging. From content creation to product information management, analytics, review management and every aspect in between, we have the tools you need to execute your product content strategy. Our team is here to ensure you’re equipped to implement revenue-driving 2D barcodes starting now. Reach out to our team to begin your 2D barcode transition today.