GS1 Standards: History and Its Role in Global Commerce
GS1 Standards are the foundation of modern business. This system of standards makes it possible to identify and track products globally.
But these standards didn’t always exist. They started with the Uniform Product Code Council (UPCC), an organization created in 1973.
The UPCC introduced the Universal Product Code (UPC), which is the barcode on almost every product today.
This simple invention changed how businesses manage their products, making checkout and inventory faster and easier.
By the early 2000s, the Global Standards 1 (GS1) organization was born, which has continued to improve product tracking with new tools like the GS1 Digital Link.
Let's look at GS1’s history and how this evolution has shaped product management today.
Table of Contents
What is GS1 Standards?
These are a set of rules that help businesses identify, track, and share information about products. They are used worldwide to ensure the supply chain runs smoothly and products are handled identically everywhere.
The most common example of a GS1 Standard is the GS1 product identification barcode. This small black-and-white pattern on products helps stores scan prices and manage inventory.
GS1 Standards also include tools for tracking shipments, identifying locations, and connecting products to digital information, like websites or instructions.
Over two million companies worldwide are currently using GS1-compliant barcodes. These barcodes help them save time, reduce errors, and make things easier for customers.
What is the Uniform Code Council (UCC)?
The Uniform Code Council (UCC), formerly known as the Uniform Product Code Council (UPCC), was the organization that set the stage for standardized product recognition in global e-commerce.
It built a standard system for businesses to track and manage products efficiently. One of the most significant achievements was the creation of the Universal Product Code (UPC).
The UCC’s system has solved many business issues, such as reducing pricing errors and accelerating checkout times. It also allows companies to convey product information more effectively, regardless of where they operate.
Transition from UCC to GS1
The demand for a global standard in barcode technology and product identification drove the transition from UCC to GS1.
The UCC focused primarily on the Universal Product Code (UPC), which is broadly used in North America, whereas the European Article Numbering (EAN) International administered standards for barcodes in Europe and other regions.
With the expansion of businesses across borders, the demand for a coordinated system became crucial, which prompted discussions between the two organizations.
In 2005, UCC and EAN International formally merged to establish GS1, the global organization responsible for maintaining and improving these standards today.
This merger guarantees consistency in barcode standards worldwide. These innovations continue to influence the way businesses connect and operate globally.
The establishment of GS1 benefited companies by providing access to a unified identification system that worked smoothly across regions and industries.
With the introduction of global product codes by GS1, businesses found it simpler to track inventory, reduce logistics errors, and improve supply chain efficiency.
The transition from UCC to GS1 widened the applications of barcodes beyond retail. It covered sectors like manufacturing, healthcare, and transportation, ensuring that product recognition conforms to international standards.
GS1 continued to advance by introducing the latest technologies, such as Data Matrix codes, QR codes, and Digital Links, which connect digital information with barcodes.
The role of UCC
1. Development of functional standards
2. Standardization across industries
3. Collaboration for global adoption
4. Foundation for digital evolution
The introduction of 2D barcodes
Where it all began?
Norma Joseph Woodland and Bernard Silver developed the idea for barcodes in 1952. Inspired by Morse code, they designed a system using bars of different widths to store information.
Their invention was revolutionary, but the technology wasn’t ready for immediate use.
The first steps toward innovation
In the 1960s, industries started exploring ways to improve processes like product recognition and checkout systems.
This initiative led to the first use of barcode scanning in 1967 in Ohio. The system used circular barcodes and was an early step towards modern systems.
The UPC revolutions
The central turning point was the development of the UPC in 1973. Designed for the grocery industry, this barcode system revolutionized product tracking.
In 1974, the first UPC barcode was scanned on a pack of gum, marking the beginning of a faster, more efficient retail system.
Global adoption and GS1’s role
The success of the UPC barcode highlighted the need for global standards. Over time, the system expanded beyond groceries, becoming useful in logistics, healthcare, and manufacturing.
By 2005, the organization behind UPC became part of GS1.
Modern-day barcodes
Barcodes have evolved to meet new demands. While traditional UPCs are still standard, newer technologies like QR codes and Data Matrix help businesses store more information and connect products to digital information.
Today, these standards are used by companies in over 150 countries, making them a universal tool for product identification. You may find many of them at the points of sale of retail outlets.
Mobile POS systems account for 35% of total POS transactions in retail. They are expected to surpass $4 billion in sales by the end of 2025.
Evolution of barcode standards
The journey of barcode technology shows continuous innovation and adaptation. GS1 QR codes have developed over time to keep up with the changing needs of businesses and consumers. This includes:
1. Origins of linear barcodes
Barcodes began as linear, one-dimensional designs like the UPC. They use vertical lines and spaces to encode basic information, such as a product’s unique identifier.
They soon became the standard for GS1 retail barcodes that are helping stores automate checkout and manage inventory more efficiently.
Other linear barcode formats, such as Code 39 and interleaved 2 of 5, were used in industries like manufacturing and logistics.
2. The upgrade to 2D barcodes
Unlike traditional barcodes, which store data in one direction, GS1 2D barcodes use both horizontal and vertical spaces, which helps them store a lot of information.
- QR Codes: Popular for their versatility, they can store website URLs, product details, and promotional content. Hence, they are perfect for marketing and e-commerce.
- Data Matrix Codes: Widely used in healthcare and aerospace industries, these codes can store a lot of data in a compact size.
3. Integration with RFID and wireless technologies
Barcode technology led to the development of Radio Frequency Identification (RFID) in the late 1990s and 2000s. Unlike barcodes, RFID uses wireless signals to track items without direct line-of-sight scanning.
RFID and barcodes often work together -RFID helps in bulk tracking, and barcodes are used for accurate identification. Studies also report that RFID improves inventory accuracy by as much as 95%.
4. Barcodes in the digital age
Barcode technology has improved in recent years in connecting with digital platforms. The development of the GS1 Digital Link now allows businesses to embed web-based data into QR codes and other 2D barcodes.
For example, a customer can scan a QR code on a product to check its origin, sustainability certifications, and usage tips.
GS1 Standards and their impact on global commerce
Varied barcode types
GS1 offers various barcode types for multiple industries. It supports UPC and EAN barcode types commonly used in retail, whereas the Data Matrix and QR codes support digital integration and advanced tracking.
Simplifies product identification
These standards have revolutionized how businesses manage inventory, products, and supply chains globally.
Offering a universal system for identifying products and barcodes, GS1 promises seamless operations across industries, ranging from retail to healthcare.
More companies are relying on the standards to boost operational efficiency, decrease errors, and improve traceability in product movement.
Efficient inventory management
One of the most significant impacts of the standards is in supply chain management. Tools like GS1 2D barcodes and RFID help businesses track items in real time, avoiding counterfeit products and ensuring precise inventory management.
The standards also support compliance with regulations, enabling industries to fulfill safety requirements and ensure quality control.
These standards streamline inventory tracking and improve patient safety in healthcare. They also enhance logistics by facilitating precise identification and traceability of products across global supply chains.
Integration with digital platforms
With the evolution of technology, GS1 continues to integrate with digital platforms and thus shape the future of businesses.
Innovations like the Digital Link enable barcodes to connect products with online information. So, consumers can easily access product details, sustainability certifications, and origin history.
The future of GS1
With growing customer expectations and technological innovation, GS1 adapts to fulfill the demands of an advancing digital age.
Here are the things that businesses and industry leaders can look forward to following the organization’s standards:
Sustainability and traceability
Consumers today demand more transparency about their products, including their origin and how they impact the environment. The standards are evolving to support:
- Sustainability Initiatives: Barcodes and QR codes now provide detailed information on product origin, carbon footprints, and recyclability.
- End-to-End Traceability: Enhanced tools for tracking products across complex supply chains, ensuring ethical sourcing and compliance with regulatory standards.
Internet of Things (IoT) support
As IoT devices become more common, these standards facilitate machine-to-machine communication. For example:
- GS1-compliant barcodes and RFID tags let smart devices track inventory, reorder products, and monitor product usage automatically.
- IoT-powered GS1 standard simplifies logistics and inventory management by providing real-time updates across the supply chain.
Advanced data sharing and blockchain integration
Blockchain technology increasingly integrates GS1 to improve data security, traceability, and transparency. This integration helps businesses to:
- Record every step in a product's journey in a secure, unchangeable ledger.
- Share verifiable information with supply chain partners and consumers.
- Reduce fraud and errors in logistics and product tracking.
AI and big data
It is expected that AI helps increase productivity for 64% of businesses. With the increasing reliance of businesses on artificial intelligence (AI) and big data, these standards will evolve to support the following:
- Advanced Analytics: Helping companies obtain deeper insights into consumer behavior, supply chain efficiency, and inventory management.
- Smart Recommendations: Use product data encoded in GS1-compliant systems to optimize logistics, reduce waste, and enhance decision-making.
Create your first GS1 QR code
QR codes are now a key tool for businesses looking to connect the physical and digital worlds. Thanks to these standards, QR codes are now more advanced than ever.
Creating one for your products is easy and efficient, even in bulk. If your business needs to generate GS1-compliant QR codes, choose a platform that simplifies the process with its advanced features.
Start creating next-gen QR codes for your business using QR TIGER/GS1.
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