Demand now swings in sharper, less predictable cycles. Transportation costs fluctuate week to week, and labor availability changes month to month. Yet retailers and suppliers are still expected to deliver precise, reliable execution with almost no margin for error.

Teams aren’t just trying to stay ahead of trends anymore; they’re trying to stay ahead of volatility. In that environment, predictability becomes a strategic asset. And across the market, retailers are already making the shift:

• They’re building more resilient and transparent supply chains designed to withstand disruption — not react to it.
• They’re tightening control and increasing item-level visibility as demand becomes harder to forecast.
• They’re using digital planning tools to stabilize inventory instead of responding to every fluctuation in real time.

In short, retailers aren’t chasing chaos anymore — they’re engineering calm. The shift toward steadier, data-driven operations is clear. Yet even as supply chains become more resilient, one quiet destabilizer remains: constant order changes.

The mid-cycle adjustments, delayed acknowledgments, quantity edits and shipment updates that happen after a truck is already rolling may seem minor on their own, but together they’re costly. They disrupt planning, confuse systems, slow execution and quietly drain cash, undermining the very stability retailers are working to build. And they happen every day, often unnoticed and almost always underestimated.

The data tells the story

When SPS Network Intelligence examined the real movement of orders across the retail network, the pattern became impossible to ignore. The analysis covered 1.2 million purchase orders, 4.8 million associated documents and $9.7 billion in merchandise volume — a scale large enough to reveal where volatility starts, how it spreads and what it ultimately costs.

Across that dataset, one signal cut through: order volatility is far more common, and far more expensive, than most teams realize.

The findings were consistent across categories and order types:

• 6.5% of total merchandise value, or $634 million, was exposed to volatility-related risk. That exposure represents inventory sitting longer, shipments moving inconsistently and cash tied up for days or weeks longer than planned.
• Every 1% reduction in volatility returned $9–10 million in cash flow back into the operation.
• Even categories known for stable, predictable demand — including grocery — showed meaningful volatility, underscoring that this isn’t an issue limited to seasonal or trend-driven businesses.

The operational consequences were equally clear.

Every small change — whether a timing update or a line-level edit — creates a series of downstream ripple effects: delayed shipments, mismatched inventory, extended dwell times and lost sales opportunities. A single mid-cycle adjustment can trigger rework across ERP, WMS, transportation and store systems.

As one retail operations leader put it: “A single delayed PO can freeze a week’s worth of sales and tie up millions in inventory.”

Volatility doesn’t just slow down one order. It compounds across the network, introducing friction at every handoff and silently pulling performance, liquidity and customer experience in the wrong direction.

Explore the complete findings in our on-demand webinar:
Pulling back the curtain on network-level volatility

What order volatility is and how it drives cost

Volatility isn’t just a process issue. It’s a financial one. At its core, order volatility is the variation or fluctuation that occurs throughout a purchase order’s lifecycle: timing updates, quantity edits, line-level changes or shipment corrections. These shifts often seem routine, but they introduce uncertainty at every step. And uncertainty creates rework, delays and added cost.

Volatility can originate from multiple touchpoints:

• Timing updates that adjust acknowledgment or ship-by dates
• Quantity changes made after the PO is issued
• Line-level edits affecting individual SKUs
• Shipment corrections made after goods have already left the warehouse

Each update triggers a downstream chain reaction. A single header-level change may force multiple revisions across ERP, WMS, carrier or 3PL systems. That rework absorbs time, slows decision-making and reduces the predictability of both shipments and inventory placement. SPS Network Intelligence found that even minor fluctuations compound as they move through the network, lengthening cycle times and increasing operational strain.

How volatility impacts financial performance

The financial impact is equally clear. When orders change mid-cycle, inventory spends more time in transition, tying up cash and extending the cash conversion cycle. Carrying costs — often 20–30% of inventory value — rise as goods sit idle or move inconsistently. Teams lean on expedited transportation to recover lost time. Missed windows introduce penalties, deductions and lost sales opportunities. The ripple effect touches every KPI:

• Delayed orders
• Higher fees
• Reduced operational efficiency
• Lower OTIF
• Narrower margins and tighter cash flow

Across $9.7 billion in analyzed order volume, SPS identified more than $600 million in merchandise value exposed to volatility risk. The pattern is direct: the more an order changes, the more value is put at risk.

This is why predictability matters more now than ever. In a market defined by thin margins, tight schedules and unpredictable demand, stability isn’t just operational efficiency — it’s liquidity, profitability and resilience.

How leaders are fighting back

Volatility has become a direct threat to profitability, especially as margins shrink and demand grows more erratic. What used to be minor exceptions now trigger downstream delays, stranded inventory and costly last-minute workarounds.

The retailers making progress have one advantage: earlier visibility into when, where and why orders are changing. With that clarity, they plan better, react faster and prevent issues before they spread.

Predictability strengthens execution by improving visibility across the PO lifecycle, reducing shipment mismatches, sharpening cash-flow accuracy and enabling clearer retailer–supplier communication. Unpredictable orders do the opposite — slowing goods midstream, weakening forecasts and compounding cost across the network.

Leading organizations counter volatility by focusing on a few core habits:

• They benchmark how often orders change and what it costs.
• They connect POs, acknowledgements, ASNs and shipments into a clear real-time view.
• They create shared accountability with suppliers to address issues early rather than react late.

These behaviors are part of a broader journey toward operational maturity. Most retailers progress through four stages of predictability, moving from reactive processes to more stable, data-driven execution. Each stage builds greater visibility, reduces variance and strengthens financial performance — especially in high-volatility environments.

Organizations that reach predictive maturity consistently see 12–18% better on-time delivery and 20–30% faster acknowledgment cycles, leading to fewer surprises, faster turns and stronger liquidity.

Predictability doesn’t remove problems — it reveals them early enough to stay in control.

The bottom line

Order volatility is the quiet force undermining even the best-built supply chains. Small changes ripple into delays, deductions and trapped cash — costing far more than most teams realize.

Leaders who take volatility seriously are already seeing the difference: fewer surprises, stronger turns, higher OTIF and more confident planning.

In a market defined by tight margins and unstable demand, predictability pays off — every single time.

Learn more with the predictability pays off analysis

Explore the research, data, and frameworks behind these findings in our new analysis,
Predictability pays off: How retail and supply chain leaders turn order volatility into a competitive advantage.

With an electronic data interchange (EDI) solution, you can electronically transmit documents such as orders, inventory updates, shipping notices and invoices. This not only eliminates time-consuming data-entry tasks and automates your order processes but also helps you support more clients and more retailers without adding operational strain.

But what about your customers who aren’t set up to use EDI?

If you’re like many suppliers and 3PLs, you work with a mix of retailers and clients who still send orders by PDFs, spreadsheets, emails and attachments.

Managing orders from non-EDI customers can be a step backwards into the inefficiencies of manual workflows. You have higher operational costs and an extra layer of difficulty when it comes to scaling and growing your business. Manual entry slows down receiving, creates downstream errors and adds cost to every order you handle.

There’s a better way.

SPS Commerce PDF Order Automation is the key to seamlessly processing non-EDI orders across your entire network, reducing effort, eliminating errors and enabling faster, more reliable fulfillment.

Navigating non-EDI order hassles

Once you’ve experienced smooth EDI order processing, the challenges of handling non-EDI orders feel even more painful, especially in a warehouse environment where every minute matters:

• High operational costs: Manually entering orders into your system costs you both time and resources, driving up cost per order and slowing down the floor, especially during peak volume.
• Errors and delays: The fallout of mis-keyed data for your business can be picking mistakes, incorrect shipments, chargebacks, damaged client trust and missed SLAs.
• Limited scalability: The more your business grows, the more manually processed PDFs and emails simply cannot keep pace with client onboarding or seasonal volume spikes.

Outdated workflows are what keep many operations from reaching true supply chain efficiency.

Transforming non-EDI orders with automation

When you manage your EDI processes with SPS Commerce Fulfillment, you already have access to 400+ pre-built system integrations for ERP, OMS, WMS solutions and more.

Our PDF Order Automation uses your existing Fulfillment integrations to map and translate non-EDI orders directly into your EDI workflow. AI-assisted mapping and translation seamlessly integrates your orders into Fulfillment.

With PDF order automation, you can:

• Process all orders through one automated workflow
• Reduce errors and speed up fulfillment
• Handle seasonal or rapid growth without increasing headcount
• Free your CSRs and warehouse teams to focus on strategic and revenue-generating work

As the largest retail network with 4,000+ buying organizations, SPS is uniquely positioned to automate even the most complex, multi-client order channels.

Tackling the accuracy issue: OCR versus AI

You may be wondering how this works or be skeptical about success if you’ve experienced the shortcomings of solutions that claim to automate non-EDI orders with optical character recognition (OCR).

OCR behaves like a scanner: it recognizes characters, not meaning. For 3PLs, where order accuracy determines pick efficiency and shipment correctness, that’s a problem. When an “O” becomes a “0,” your warehouse ends up picking the wrong SKU — and the cost hits your margins.

SPS PDF Order Automation is not OCR. Our solution uses AI, so instead of just reading characters, our system actually understands the structure and meaning of the documents.

Thanks to AI-assisted mapping, our solution also learns how to match the fields in each unique PDF to the fields in your order system.

This proprietary technology extracts data with near-perfect accuracy. This ensures your PDF orders are processed just like EDI orders — precisely, consistently and reliably enough for warehouse execution.

SPS PDF Order Automation delivers the highest level of accuracy and efficiency, eliminating the concerns associated with legacy OCR systems.

Weighing the need: PDF order volume

While PDF Order Automation may seem like an obvious solution for high-volume businesses, it’s also valuable for low order volumes and for warehouses with mixed clients or unpredictable order patterns.

Manual processes for smaller orders still create inefficiencies, errors and unnecessary costs. SPS PDF Order Automation reduces these burdens, providing a scalable foundation that saves time and money now while preparing your business for growth.

Leveling up: now is the time

Automating non-EDI orders isn’t just about saving time—it’s a strategic move that prepares you to move ahead in a competitive market and accelerate your growth. Leading the way with innovative automation helps you better meet customer demands, handle growing order volumes and eliminate costly errors.

Whether you’re an existing SPS customer or just starting your supply chain optimization journey, SPS PDF Order Automation is a reliable, scalable solution that eliminates inefficiencies from your non-EDI workflows and prepares your warehouse for the future.

Non-EDI orders don’t have to slow your business down. Automating these workflows enables you to process orders faster, reduce your costs and focus on your business goals.

Ready to eliminate manual PDF orders? Talk to a rep to see how PDF Order Automation fits into your operations.

At 9:46, you’re blindsided by changing requirements for another long-time customer, spiking load acceptance times. It’s an all-hands-on-deck moment, but the full consequences of the bottleneck won’t be felt until the carrier scorecards are delivered. Your teams start to worry about keeping the shipper relationship alive as they scramble to manage the chaos.

Hour by hour, the challenges that come with outdated systems and disconnected processes combine to take their toll on revenue. At the center of it all is a tangled web of slow communication, manual effort and missed insight. But even the toughest challenges carriers face can be overcome with solutions designed to help transportation companies fit into the flow of today’s supply chain.

Let’s break down where it hurts the most and how implementing new solutions could prove to be a turning point for carriers.

1: Slow tender response time

Delayed response to load tenders leads to missed opportunities, slashed revenue and eroded trust. With shippers giving preference to carriers who respond quickly, inconsistent communication damages relationships and increases the chances of being passed over entirely. The longer it takes to respond, the less likely a carrier is to win profitable loads.

That makes reducing the time from receipt to response a high priority for carriers, and as transportation companies look to process optimization to push times down, load tender responses are a prime target.

As companies evaluate options to accelerate the pace of business, leaders are turning to centralized EDI solutions that can simplify tender responses. Instead of chasing down information, dispatchers can respond to tenders within seconds, helping boost revenue and keep preferred carrier status. The benefits of implementing an EDI solution can be far-reaching, as carriers find they gain added visibility on top of improved customer relationships.

2: Delayed shipper onboarding

Onboarding new shippers can require carriers to enter a danger zone of endless emails, redundant paperwork and disconnected workflows. When carrier teams are stuck in the weeds and unable to focus on performance or relationship-building, shippers experience downhill delays, confusion and frustration.

Ensuring that new customers feel comfortable and your systems align can help carriers shorten time to value. But what happens when all the new business results in a mess of disconnected portals and logins? As you take on more shippers, the need to work alongside their tech stack can drag efficiency down.

Some carriers are working toward standardized forms, real-time data validation and automatic system updates to reduce friction and error, but increasing numbers of transportation companies are opting for turnkey, full-service solutions with onboarding workflows already built in. This results in shippers being onboarded in weeks instead of months, allowing carriers to grow their business without increasing manual effort.

3: Lack of TMS optimization

Operating without a TMS—or with one that’s poorly configured—leaves carriers gambling with their shipments. There’s no reliable way to manage capacity, optimize routes or track carrier performance. The result is a mixed bag of effects caused by manual processes: slow dispatching, underused resources and excessive labor costs.

But even as more carriers move to a TMS system to handle these details, barebones implementations can leave out vital features, leading to processes that are only half as powerful as they could be. As carriers work to remain relevant in a fiercely competitive industry, ensuring that their TMS is supported by solutions that streamline other areas of the business can help them stay ahead.

As carriers fight to keep pace with their peers, more powerful TMS tools will be a deciding factor in their success. A centralized EDI system can integrate seamlessly with TMS platforms, enhancing their capability by feeding them real-time data. The addition enables better automation and more accurate routing while boosting the scalability of the business as a whole.

4: Weak shipper scorecard results

Without clear, trackable shipper scorecard metrics, performance management becomes guesswork. Are you meeting SLAs? Are certain lanes costing more than they’re worth? Without the numbers, you’re flying blind, and that’s risky, especially with shippers who expect transparency and proof of value.

Better scorecard results can strengthen partnerships with higher freight volumes and better contracts, while less desirable scorecard results can spell disaster for medium-sized carriers. But to get the best scores, it’s clear that carriers need the right solutions in place to manage common friction points that can drive scores down and leave dollars on the table.

Solutions that enable automatic metric tracking from load acceptance to delivery KPIs can best help carriers sidestep those friction points and achieve scorecard success. The result is a win-win situation: Shippers get the visibility they need, and carriers gain actionable insights to improve efficiency, win more freight and do it all with improved service quality.

5: Trouble turning growth into scale

As volume increases, so does the complexity of managing the people, systems and data needed to support a network of new customers. Without streamlined workflows, growth becomes unsustainable, leading to burnout, mistakes and customer dissatisfaction. That means operational inefficiency isn’t just holding carriers back from doing their best work day-to-day—it’s holding them back from scalable growth year-over-year.

Scaling logistics operations can be shackled by complexity as carriers expand operations to take on new business, with slowdowns surrounding billing and hiring compromising carrier revenue. As carriers manage a list of billing templates, schedules and workflows, the added complexity requires carriers to spend extra time handling shifting requirements.

The disruptions have led carriers to look for solutions that create a foundation for scalable operations by standardizing communication, automating routine tasks and consolidating fragmented customer portals. New solutions allow carriers to grow without having to chase down updates, reconcile documents or respond to avoidable exceptions, leaving teams to focus on strategy and service.

The turning point

The challenges facing transportation companies today are more about structure than speed. A centralized, full-service solution offers a framework for running leaner, faster and more resilient operations, and it shows in our original example:

It’s 9:03 a.m. and a high-priority customer posts a shipment that’s bid, accepted and off the dock faster than ever. Your team is on top of every reply and all your customers experience an onboarding workflow that’s fast and standardized. Drivers are busy, and every requirement is managed without extra personnel to manage it all. The upcoming scorecards look great, and you’re looking forward to taking on even more shipments next quarter as the excellent results keep rolling in.

Sound too good to be true? SPS for 3PLs Transportation Solution can get you there. In a business where every delay costs money and every inefficiency compounds, carriers who focus on modernizing their workflows can gain margin and momentum. That’s why SPS for 3PLs Transportation Solution was made to help carriers work at the pace of today’s supply chain and offer a standout customer experience in the process. Learn more here.

Scorecard performance is a reflection of how well a carrier aligns with a shipper’s operational and strategic priorities. Earning high marks requires a combination of operational discipline, data visibility, compliance and adaptability. In today’s environment, where cost control and service levels are critical considerations, carriers that treat scorecard success as a core competency will be better positioned to compete, scale and lead their markets.

Strong scorecard performance opens doors to long-term, high-volume relationships with favorable terms, while a weak showing can limit growth, regardless of operational capabilities. But maintaining consistently strong marks is difficult without the right systems in place—especially in a complex, margin-tight environment where rules and requirements are constantly changing.

Here, let’s explore where carriers can focus to drive better scorecard outcomes and unlock growth.

Roadblock 1: Complex load acceptance

Though it may be a straightforward decision for an owner-operator carrier, developing load acceptance strategies for companies with multiple power units and shippers has become a multi-dimensional problem. Carriers must weigh margin, resource constraints, regulatory issues and the downstream impact of each load on performance metrics before taking it on.

Manual processes often lead to poor load selection, missed SLAs and rejected tenders, all of which hurt scorecard performance. Inefficiencies in carrier operations can also lead to higher logistics costs, damaged goods from inefficient loading and transportation delays, but a successful scorecard strategy can help identify underperforming areas of the business.

Carriers that implement data-driven load acceptance models can weigh profitability and performance impact side by side, enabling better decisions at scale. By integrating a modern TMS with EDI and visibility tools, carriers can streamline decision-making to improve and protect scorecard health.

Roadblock 2: Limited shipment visibility

Tracking compliance and milestone visibility are key metrics on most shipping scorecards. Without automated updates, accurate ETAs and real-time alerts, carriers risk falling behind, even if actual delivery performance is strong.

Supply chain disruptions, such as delays or damage to goods, also pose risks to visibility and scorecard success. With added stress around order and inventory management, stock levels may be kept low to avoid warehousing costs, so there may not always be a backup plan for late or damaged goods.

Lack of system integration, outdated tracking methods or overreliance on manual updates can all erode trust and lead to missed opportunities. Carriers that invest in telematics and connect their systems to shipper platforms demonstrate greater transparency, reduce administrative overhead and build stronger partnerships.

Roadblock 3: Changing customer requirements

Requirements change—constantly. As shippers evolve their strategies, they introduce new metrics and compliance standards, which can catch carriers off guard. New internal initiatives from shippers require carriers to quickly pivot and adjust their strategy. Without a way to stay in sync, the added communication demands can become a challenge.

With increasing emphasis on sustainability and efficiency, businesses desire carriers that align with their priorities. Scorecarding can evaluate carriers both operational and environmental metrics such as fuel efficiency and emissions reduction.

The most successful carriers implement internal governance processes to track changes, assign ownership and respond proactively. But not every carrier has the internal resources or usable data to manage this effectively. In those cases, partnering with a full-service analytics provider or managed service can help bridge the gap — providing strategic insight and hands-on support to keep performance in sync with changing demands.

Improving shipping scorecard performance goes far beyond checking compliance boxes to unlocking business value. Carriers who excel in scorecard metrics enjoy better rates, stronger relationships, reduced operating costs and priority access to freight. In a landscape where every dollar counts and every shipment matters, investing in the right tools and strategies is the path to sustainable growth and differentiation. See how the SPS for 3PLs Transportation Solution can help.

But achieving operational efficiency isn’t that simple, and scaling operations can stall in the face of common problems that cause delays and bottlenecks. Without the right strategies and solutions, teams can spend valuable hours chasing down updates, reconciling documents and responding to avoidable exceptions, compromising the scalability of the business as a whole.

In this blog, we’ll look at the challenges that stand in the way of scaling operations for trucking companies, and how persistent problems can be solved with the right mix of processes, people and technology.

Moving past inefficient manual processes

Today, many carriers still rely on spreadsheets, emails and other manual processes to manage critical business functions. Teams waste time rekeying data, working around multiple partner portals and tracking down missing documents, all of which cut into margins and take dollars away from the company’s bottom line.

Top carriers are now replacing outdated processes with digital workflows that connect shippers and data in real-time. Systems that reduce manual touchpoints and minimize errors allow businesses to more easily onboard customers and keep operations synced with their partner network.

An EDI solution can help trucking companies reduce manual processes by automating the exchange of load tenders, invoices and delivery confirmations between carriers and a network of retail and manufacturing partners. This reduces costs associated with time-consuming emails and data entry, allowing the business to operate with enough efficiency to confidently take on new shipping partners.

Navigating complicated billing requirements

Carriers that support a wide range of shippers know each has its own invoicing rules, formats and compliance needs. What works for one might not be acceptable to another, forcing carriers to maintain multiple templates, schedules and workflows. As carriers grow their partner network, the operational complexity grows with it, ultimately cutting into cash flow and damaging the financial health of the business.

But without automation, that level of detail introduces operational risk; incorrect or late invoices, disputed charges and delayed payments are common costly challenges that restrict revenue. A single mistake like sending an invoice in the wrong format or missing a required field can delay payments for weeks.

However, carrier technology solutions can streamline cash flow by enabling automated, rules-based billing that adapts to each customer, meaning carriers no longer have to manage a tangle of custom processes. Instead, they can standardize and automate billing across their entire customer base, allowing them to scale operations as they take on new business.

Relying on expensive employee hours

As they grow, many carriers discover a frustrating truth: adding more customers often means hiring more people just to handle the increased volume of paperwork and communication. What should be a success story quickly becomes unmanageable as operational costs rise alongside number of shipping partners.

Scaling by constantly expanding workforce alongside customer count is both inefficient and unsustainable. Labor costs quickly eat into margins while new hires require training, oversight and time to ramp up—and that’s not even considering the current challenges with finding and hiring talent.

Rather than building out larger teams to handle repetitive tasks, carriers are moving toward smart systems that offer the efficiency they need to handle additional customers. Automating document exchange, standardizing processes and implementing real-time data visibility allows carriers to support higher volumes and more complex operations without proportionally increasing headcount.

Without addressing the problems created by manual processes, complex billing and dependence on large workforces, it becomes impossible to operate a carrier business at scale. But proven solutions can help carriers grow without struggling with common challenges. Problems with billing, data exchange or process automation can be effectively managed with a combination of the right technology and team.

Want to see how SPS helps carriers achieve that combination? Read more about SPS for 3PLs here and discover a single-point solution that integrates seamlessly with your TMS, so you can elevate your efficiency to new heights.

But a significant shift is changing how companies track and identify products throughout the supply chain. 2D barcodes are emerging as the next standard, and they pack dramatically more information into a compact square format. While a UCC-128 shipping label might hold 48 characters of data, a 2D barcode can store thousands of characters, including serial numbers, batch codes, expiration dates and much more.

Major retailers are preparing for 2D barcode adoption, and new industry standards will require point-of-sale systems to accept 2D barcodes globally by the end of 2027. This means businesses across the supply chain must understand how 2D barcodes work and prepare their operations for the transition.

Why 2D barcodes are replacing traditional barcodes

The push toward 2D barcodes comes directly from consumer demand. According to recent research by industry standards body GS1, 77% of shoppers say product information is important when making purchases, and 62% are willing to spend more on products that offer detailed information. Additionally, 79% are more likely to purchase products with scannable codes that provide extra product details via smartphone.

The information consumers want most includes nutrition facts, materials and ingredients, safety information, country of origin, allergen warnings and recall alerts—far more than a traditional 1D barcode can hold.

Consumer pressure has accelerated industry adoption. The transition is already underway, with 2D barcode technology being tested in 48 countries that represent 88% of the world’s GDP. Major retailers are preparing for 2D barcode adoption, and new industry standards will require point-of-sale systems to accept 2D barcodes globally by 2027 under the GS1 Sunrise 2027 initiative.

What are 2D barcodes?

A 2D barcode stores information in two dimensions—both horizontally and vertically.

In contrast, a 1D barcode stores information horizontally.

The most common types of 2D barcodes include:

QR codes are square, pixelated codes you scan with your smartphone. Originally developed in Japan for tracking automotive parts, they’re now everywhere from restaurant menus to marketing materials.

Data matrix codes are smaller, more compact squares often used in manufacturing and healthcare. You might see these on prescription bottles or electronic components.

PDF417 codes are rectangular barcodes that look like tiny bricks stacked on top of each other. These are commonly used on driver’s licenses and shipping labels.

So, is a QR code a 2D barcode? Absolutely! QR codes are the most recognizable type, but they’re just one variety of advanced barcode technology.

How do 2D barcodes work?

2D barcodes work by encoding information in patterns of dark and light squares, rectangles or dots arranged in a grid. Instead of reading information linearly from left to right like traditional barcodes, scanners read 2D codes in multiple directions.

Here’s what happens when you scan a 2D barcode:

1. Pattern recognition: The scanner’s camera or laser identifies the finder patterns (those larger squares in the corners of QR codes, for example) to understand the code’s orientation and size.
2. Data extraction: The scanner reads the arrangement of dark and light modules across the entire code, converting the visual pattern into digital information.
3. Error correction: Most 2D barcodes include built-in error correction, meaning they can still be read even if part of the code is damaged or obscured.
4. Information output: The scanner processes the data and presents it in a readable format, whether that’s a website URL, product details or other encoded information.

How much data can a 2D barcode hold? It varies by type:

• QR codes can store up to 4,296 alphanumeric characters.
• Data Matrix codes can hold up to 2,335 alphanumeric characters.
• PDF417 codes can store up to 1,850 alphanumeric characters.

The massive capacity difference explains why 2D barcodes can include detailed information like batch numbers, expiration dates, serial numbers and even complete product descriptions.

Creating and scanning 2D barcodes

How to create 2D barcodes

Businesses have several options for generating 2D barcodes, depending on their volume needs and technical requirements.

For small-scale needs, online generators offer a simple solution. Search for “QR code generator” or “2D barcode generator,” enter your information (text, URL, contact details) and download the resulting image.

For office integration, creating 2D barcodes in Excel is possible through add-ins or formulas that generate QR codes.

For enterprise operations, businesses choose between dedicated barcode software for bulk creation or integrated solutions that connect with existing supply chain systems. Many companies prefer platforms that generate compliant barcodes and integrate data with trading partners.

How to scan 2D barcodes

Many small businesses begin by using mobile phones to scan barcodes. On an iPhone, open the Camera app and point it at the barcode. A notification will appear at the top of the screen. Tap it to view the information. Most Android phones offer a similar experience.

As a business grows, receiving processes often become more complex. At that point, companies typically move to tablets or dedicated scanners. These devices may be handheld or mounted and are built to handle higher volumes. They also connect directly to ERP or WMS systems, making it easier to manage inventory at scale.

Most modern scanners can read both 1D and 2D barcodes. If you’re using older equipment, look for “2D imaging” or “area imaging” capabilities. Laser-only scanners may not support 2D codes.

Scanner compatibility and technical questions

One of the most common questions businesses ask is: can a 2D barcode scanner read 1D barcodes? The short answer is yes, almost always.

Modern 2D scanners use imaging technology (essentially tiny cameras) that can capture and decode both 1D and 2D barcodes. This means businesses can upgrade to 2D scanning equipment without losing the ability to read traditional UPC codes and other 1D formats.

However, the reverse isn’t true. Traditional 1D laser scanners can’t read 2D barcodes because they only scan in one direction. If you’re still using older laser scanning equipment, you’ll need to upgrade to 2D imaging scanners to read the new barcode formats.

When evaluating scanner upgrades, consider:

• Imaging vs. laser technology: 2D scanners use cameras, 1D scanners use lasers.
• Reading distance and angle: 2D scanners are generally more flexible about positioning.
• Durability requirements: Industrial environments may need ruggedized 2D scanners.

Benefits of 2D barcode technology

2D barcodes provide several key benefits:

• Enhanced traceability: Batch numbers and expiration dates encoded in the barcode improve recall response and inventory management.
• Supply chain transparency: 2D barcodes track detailed product information from manufacturer to consumer.
• Consumer engagement: Shoppers scan products with their phones to access detailed information, reviews, recipes or promotional content from the same checkout barcode.
• Operational efficiency: A single scan captures pricing, promotional details and inventory data, reducing checkout errors and speeding up transactions.
• Regulatory compliance: Pharmaceutical and food industries increasingly require detailed product tracking that 1D barcodes can’t support.
• Better product authentication: 2D barcodes combat counterfeiting and build brand trust through verified information.

The transition to 2D barcodes won’t happen overnight. Businesses need to upgrade point-of-sale systems, update packaging processes and get their supply chain partners ready. But the benefits, from improved food safety to better customer experiences, are expected to drive rapid adoption across retail chains.

Common applications and use cases

2D barcodes are already transforming operations across industries:

Retail and consumer goods: Companies authenticate products, share ingredient information and run promotional campaigns that connect physical products to digital experiences. 2D barcodes on shipping labels consolidate shipment details, item information and receiving instructions into a single scan, providing complete supply chain visibility from warehouse to store.

Healthcare and pharmaceuticals: Medication tracking creates full traceability from manufacturer to bedside, reducing medication errors and meeting regulatory compliance requirements. Healthcare providers can track batch numbers and expiration dates throughout the entire supply chain.

Manufacturing and automotive: Quality control systems track parts throughout complex supply chains and rapidly identify defective components. Production data, batch numbers and quality control information travel with products from manufacturing through distribution, creating complete visibility into the production process.

Food and beverage: Lot tracking systems enable rapid response to contamination issues and provide consumers with detailed sourcing information. Companies can trace products from farm to table, improving food safety and meeting transparency demands.

Electronics and technology: Manufacturers embed serial number tracking, warranty information and anti-counterfeiting measures directly into product labeling. This creates visibility into product authenticity and ownership throughout the device lifecycle.

The future of 2D barcodes

2D barcodes are more than just a technical upgrade. They open the door to entirely new ways for businesses and consumers to interact with products. As scanning technology advances, expect to see:

• Dynamic content: Barcodes that link to real-time information like pricing, availability, or promotional offers
• Personalized experiences: Product scans that deliver different messages or offers based on the user, time, or location
• IoT integration: Barcodes that connect physical products to smart systems for reordering, maintenance, or usage tracking
• Enhanced security: Built-in authentication features that make counterfeiting much more difficult
• Sustainability tracking: Lifecycle data that helps consumers make environmentally responsible choices

2D barcode technology is already in use, and early adopters are seeing strong returns. As momentum builds, businesses that prepare now will be better positioned to take full advantage of what’s ahead.

Getting started with 2D barcodes

The simplest approach involves starting small by creating a 2D barcode for a business website or contact information to test customer response. The barrier to entry is lower than most expect.

Begin by examining current barcode scanning equipment and identifying where 2D barcodes could add value. Try testing 2D barcodes with key processes before expanding across your company.

Organizations worldwide are already implementing 2D barcode technology across their supply chains. Understanding how they work and planning for implementation now positions operations for the transition to this new standard in B2B commerce and product identification.

Scanning for what’s next

2D barcodes give you the detailed data you need: batch numbers for recalls, expiration dates for compliance and serial numbers for authentication. But having this data only helps if you can act on it across all your sales channels.

Ready to put your data to work? Omnichannel fulfillment turns improved data into seamless experiences online, in-store and everywhere customers shop.

Welcome to the beauty industry in 2025, where trends move faster, promotions launch around the clock and the margin for error is smaller than ever. Tariff shifts, supply delays and viral media moments creating instant and unplanned demand make it almost impossible to plan ahead. That’s why so many beauty brands are upping their game, looking for more tailored and data-ready solutions.

Because when you’re navigating complexity, clarity becomes a powerful advantage.

Why visibility matters more than ever

In a dynamic category like beauty, understanding what’s working and where it’s working is critical. Whether you’re evaluating a product launch, responding to a supply chain delay or reviewing seasonal performance, having clear, up-to-date data makes it easier to take the correct next steps.

Without that visibility, teams often end up relying on incomplete reports, or occasionally just instinct to make decisions. It’s not a lack of effort. It’s simply hard to stay ahead when the information you need is scattered across systems or buried in spreadsheets.

Brands are finding that when their data is more accessible and aligned, their teams are, too.

More connected data = better decisions at every level

When analysts, planners and decision-makers are all working from the same accurate information, things tend to run more smoothly.

• Demand planners can react quickly to viral trends and avoid stockouts
• Sales teams can walk into buyer meetings armed with data on which SKUs are driving margin, and which ones aren’t pulling their weight
• Leadership teams can spot shifts in the market or shopper behavior and adjust before competitors do

That kind of alignment doesn’t just improve operations. It helps teams feel more in control, even in an unpredictable market.

Better data helps beauty brands move forward with confidence

Making sense of retail data may not be glamorous, but in the beauty industry, it’s essential. The good news? It’s becoming more achievable.

With the right tools and processes in place, more beauty brands are finding ways to cut through the noise, uncover meaningful insights and make proactive decisions.

Brands that are outperforming right now have something in common: they know what’s happening in their business at every level. They’re monitoring SKU-level performance by region. They’re adjusting launch plans based on real-time sell-through. They’re showing up to line reviews with data that tells a clear story.

These brands haven’t just added an analytics tool. They’ve adopted a culture of visibility, and it’s changing how they plan, react and grow.

Ready to take care of your brand’s data? Learn how SPS Analytics helps beauty suppliers turn data chaos into clarity. Download our quick overview or schedule a demo.

It’s an unpredictable retail environment, but one truth stands above all: when you don’t know where to turn, look to your data. At the recent SPS Commerce Analytics User Group (AUG), we heard from both emerging brands and established retail leaders who are leveraging their retail sell-through data and analytics reporting tools to come out strong during unstable market conditions.

The trust challenge

The numbers speak volumes. According to Gartner research, 97% of businesses struggle with supply chain metrics, and 70% lack confidence in their current technology. For suppliers trying to navigate an uncertain future using outdated tools and disparate data, these statistics aren’t just numbers—they represent daily operational challenges impacting their ability to serve retail partners effectively.

“The data is always telling you something.”

– Analytics User Group panelist, VP of collegiate apparel brand.

That insight explains why more suppliers are moving away from portals and spreadsheets and turning toward dynamic analytics solutions that offer practical reporting tools as well as options to integrate with planning systems and BI tools. Starting the week with up-to-date reports highlighting performance metrics and inventory risks offers a head start for tackling the week ahead.

From data to competitive advantage

What separates high-performing suppliers from the rest often comes down to speed: how fast they can turn insights into action. Our AUG participants shared how this plays out in real-world scenarios.

One supplier shared how they revolutionized their inventory approach by combining data sources to create a fast-turn replenishment model. This quick-to-market college sporting apparel brand analyzed sell-through data following game days, along with location data and team schedules for the upcoming weekend’s games, allowing them to replenish key teams’ fan apparel at the exact locations fans would be shopping. This quick-response capability helped them climb from ninth to third position with a key retail partner, growing revenue by 50% in just one year.

For suppliers looking to keep inventory lean while leveraging every opportunity, this example shows how having access to trustworthy data translates directly to measurable results. Suppliers using SPS Analytics consistently outperform industry averages in revenue growth, sell-through and gross margin.

Building your data trust framework

The most successful suppliers use a systematic approach to retail data:

1. Start with reliable inventory tools. Look for solutions that deliver complete, accurate and timely data in one secure location and ease the resource burden on your team.
2. Gain a holistic view of your retail data. Go beyond inventory counts. Analyze omnichannel performance and drill into the “why” behind the numbers.
3. Focus on inventory optimization management. Solutions that offer the option to integrate retail sales and inventory data into your preferred BI tools create process efficiency gains.
4. Use predictive analytics. Forecast demand and adjust before buyers even ask, turning responsiveness into partnership.

Data builds stronger partnerships

The most powerful insight from our AUG discussions wasn’t just about trusting data internally; it was about how trusted data transforms your retail partnerships.

“Leverage data to build trust with your partners.”

– Planning manager of one of the world’s leading footwear brands

By sharing sell-through data, their team aligns more closely with buyers and strengthens collaboration. This approach is especially valuable in categories where retailer trust determines premium shelf space and promotional support.

Transform your retail data into revenue growth

Turn complex retail data into actionable insights that power your success in everything from inventory optimization to sales forecasting to stronger partnerships. The future of retail is uncertain, but trust in your data and strong relationships with your buyers don’t have to be. Be empowered to use your data as your guide and keep moving forward with confidence.

Learn more about SPS Analytics.

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