Increased Barcode Compliance Charges in 2023

For over twenty-five years, we have been administering barcode certification and compliance programs for major US retailers. The retail industry has dramatically changed over the years and the focus on supply chain efficiency has never been greater. Some suppliers view barcode compliance charges as a “profit center” for retailers but as an unbiased testing center, we can attest that the infractions we are processing are very much valid. The retailers that utilize our compliance administration services, empower us to support the compliance offsets and protect their suppliers’ interests against inaccurate barcode reporting.

Prior to the COVID-19 pandemic, we were routinely told by individual suppliers receiving compliance notices that “This is the ONLY retailer that’s charging me back for barcode labels”. Today, many of those same suppliers are experiencing compliance offsets from a variety of customers.

This year our testing division, Identification Labs, has evaluated hundreds of supplier GS1-128 shipping labels for retailers outside our existing partnerships. The primary reason is that these retailers are assessing compliance fees but do not provide the necessary ISO/ANSI certification and assistance to enable their suppliers to comply. Below are a few of the recent supplier-provided retailer GS1-128 we have been asked to evaluate.

GS1-128 Shipping Label Best Practices

• Routinely review your trading partners’ requirements. Convey this information to key personnel at your company. For example, JCPenney suppliers are encouraged to visit their web portal weekly.

• Do not assume your company is in compliance. Confirm your company’s compliance by certifying your GS1-128 shipping labels. New personnel and system changes require updated certification for each retailer whose business you value.  A $75 testing/certification fee can prevent unnecessary compliance offsets. We consistently see an increase in label defects from previously certified suppliers who made changes to their label material.

• Emphasis the importance of GS1-128 Shipping Label Placement to all personnel responsible for handling cartons. Placement requirements vary among retailers so education is key. Over 23% of all label offsets in the last quarter involved incorrectly placed GS1-128 labels.

• Perform routine maintenance on printing equipment and confirm supplies are suitable for your application. If you are having issues with print quality, changing your print heads may solve the problem. We also recommend you always have spare print heads in-house at all times. Print quality infractions account for the largest percentage of GS1-128 issues and can be eliminated by proactive quality control that ensures consistent label compliance.

For the retailers that we partner with, we’re able to promote and guide suppliers to certification immediately after any shipping label-related compliance issues. In some cases, re-certification is simply built into the compliance process – if a label fails in the supply chain that means you automatically need to certify a corrected sample.

Bar Code Graphics is a leader in barcode print quality and is the largest North American barcode testing center for POS and shipping labels. Please feel free to call us at 800.662.0701 x310 or email us at support@barcode-us.com.  Information on our in-house barcode testing group can be viewed at www.identificationlabs.com.