In a VDC report titled “Advancing Logistics Operations Through Intelligent Data Capture,”1 the organization creates a pathway for companies that are looking to streamline their supply chains, while also tackling goals pertaining to speed, efficiency, and transparency.2
Even with growing progress in automation, the results show that many companies continue to struggle with key operational hurdles, including aging scanning technologies and inconsistent labeling practices.
Common challenges in modern logistics operations
Some of main obstacles faced in the logistics space include:
- 70% of logistics operations face barcode readability issues every week, as a result of poor label quality, inconsistent labeling or outdated scanning systems
- 47% of companies note that that invest in 2D barcodes for the enhanced information exchange aspect
- 43% of companies are looking for a boost in transparency when it comes to sourcing and traceability
- 36% of companies aim to bolster both their asset tracking and inventory management
Why standards-based automation is key to supply chain resilience
The GS1 US-commissioned study also determined that improving supply chain efficiency and resilience is dependent on adopting automated, standards-based data capture systems. Although several types of 2D barcodes—such as QR codes and GS1 DataMatrix—have the capability to store much more information than traditional barcodes, many companies still use outdated systems unable to process 2D data effectively.
That’s where GS1 standards come in. They are utilized internationally for the simplification of product identification, and they allow for real-time visibility and coordination between supply chain partners. In essense, the goal is to increase transparency and lower the amount of labeling errors, which would remove any relabeling efforts.
“In today’s fast-paced, data-driven supply chain environment, outdated logistics systems, fragmented labeling practices and manual processes are no longer sustainable,” commented Gena Morgan, vice president of global standards with GS1 US. “The need for real-time traceability, inventory management and smooth operations calls for more-standardized logistics practices. In order for products to move efficiently through the supply chain in a system that can adapt to potential disruptions, more-automated data capture that builds on the foundation of supply chain standards is paramount.”
“As pressure builds to strengthen traceability, automate fulfillment and reduce waste, the findings show that businesses across industries—from retail and food to healthcare and apparel –can make meaningful progress by voluntarily adopting 2D barcodes and GS1 Standards. These proven enablers support faster, more accurate product identification and seamless data exchange from source to shelf.”
Supporting DSCSA implementation through collaboration
To dig into this topic further, Pharma Commerce recently spoke3 with Ullrich Mayeski, GS1 US’ community engagement director of health, in which he outlined how manufacturers, distributors, and dispensers can strengthen end-to-end traceability, especially when it comes to Drug Supply Chain Security Act (DSCSA) implementation.
“The good news here is that generally, the industry doesn't have to invent things. There are implementation guides from GS1, from HDA [Healthcare Distribution Association], and from other organizations that have really explored a lot of the issues that trading partners or supply chain is going to face when they are enacting their DSCSA compliance program” Mayeski explained. “There are things like exceptions, for example. The industry has really spent a lot of time on exceptions, which are essentially instances where there's a non-conforming transaction. Something happens in your system, we have data that shows up with no product, or we have product that shows up and it doesn't have the appropriate data. How do we diagnose that? The industry spent a lot of time collaborating on what are the best practices to address that.”
References
1. Clarke M, Gupta R, Krebs, D. Advancing Logistics Operations Through Intelligent Data Capture. GS1 US. Accessed October 6, 2025. https://www.gs1us.org/lp/vdc-research?utm_source=release&utm_medium=pr&utm_campaign=bupc-scv-vdcresearch&utm_content=vdcpr
2. New GS1 US Research Offers Companies a Roadmap to Supply Chain Modernization Through Intelligent Data Capture. PR Newswire. September 25, 2025. Accessed October 6, 2025. https://www.prnewswire.com/news-releases/new-gs1-us-research-offers-companies-a-roadmap-to-supply-chain-modernization-through-intelligent-data-capture-302566978.html
3. Saraceno N. HDA 2025 Traceability Seminar: Building a Secure and Interoperable Supply Chain. Pharmaceutical Commerce. September 24, 2025. Accessed October 6, 2025. https://www.pharmaceuticalcommerce.com/view/building-a-secure-interoperable-supply-chain