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Why a barcode that scans fine at the factory is rejected at the distribution centre

By Frank GuoPublished Updated 12 min read

// In short

A barcode that beeps on the factory scanner can still be refused at a distribution centre. Either its print quality is too close to the limit for the DC’s scanners, or it scans and carries a number the DC does not expect, or a required label is missing. Each has a different fix, and only one of them is about print quality.

// Key takeaways

  • A scanner only tells you a code decodes; a verifier measures how well it is printed. A code can pass the first and still fail at another scanner.
  • On GS1 logistic labels the SSCC, carried in GS1-128, is the one mandatory element, and GS1 sets a minimum print grade for barcodes in general distribution.
  • Many DC refusals are not print problems at all: the SSCC is wrong, duplicated or unknown to the receiving system, or a side label is missing.
  • Reading every case or pallet label at dispatch and checking the SSCC against the WMS stops wrong and missing labels; sampling with a verifier proves the print grade.

Why does a barcode that scanned fine get rejected?

“It scanned fine here” usually means one scanner, at one angle, read the code once. GS1 UK puts the difference plainly: a scanner simply beeps or not, whereas a verifier checks the barcode’s quality (GS1 UK). A code printed near the limit decodes on a forgiving scanner and fails on a different one, at a steeper angle, at conveyor speed or after the label has been scuffed in transit.

The other half of refusals has nothing to do with print. The DC reads the code without trouble and the number is wrong: an SSCC that was not in the advance notice, a label from another pallet, or the same SSCC used twice. A barcode verifier would grade that label as perfect.

Why logistic labels fail at the distribution centre, and what a dispatch check catches
What the distribution centre seesTypical cause at the supplierCaught by reading every label at dispatch?
The label does not scan at allPrint too light or too dark, a worn print head or ribbon, a damaged or creased labelYes: a no-read is a fail and the case or pallet is held
It scans on one scanner but not on anotherPrint quality near the limit: it decodes on a forgiving scanner but not at a DC scanner, angle or speedPartly: a quality indicator can warn; a formal grade needs a verifier on samples
It scans, but the number is unknown or wrongSSCC not sent in the advance notice, label from another pallet, duplicate or reused SSCCYes, if the read SSCC is checked against the WMS or dispatch record
Only one side of the pallet has a labelLabeller missed a side, label torn off during wrappingYes, if both required sides are read
Two different labels on one palletRelabelling after a mix-up without removing the old labelYes, if the two reads are compared

What do GS1 rules require on cases and pallets?

On a GS1 logistic label the SSCC is the single mandatory element, carried in a GS1-128 barcode (GS1 General Specifications). GS1 also sets the minimum print quality: barcodes in general distribution, including ITF-14 and GS1-128 on cases and pallets, need at least 1.5/10/660, where 1.5 corresponds to ISO grade C (GS1 General Specifications).

GS1 South Africa tests barcodes with ISO 15416 verification methods and states that many retailers require its barcode test report when a product is listed (GS1 South Africa). That report tests samples before listing. It does not check what the labeller prints every day, which can drift with the print head, ribbon, label stock and speed.

How the grades are measured is explained in barcode verification and grading and the GS1-128 barcode guide.

What does the distribution centre actually check?

The SSCC, which identifies one logistic unit (GS1, SSCC), is the link between the physical pallet and the data about it: GS1 describes it as connecting the logistic unit with the information exchanged between trading partners by EDI (GS1 General Specifications). The GS1 Logistic Label Guideline describes the supplier using the same SSCC to identify stock when it is loaded for dispatch (GS1 Logistic Label Guideline). So the DC does not only scan the label; it looks the number up.

How a distribution centre receives a labelled pallet, and where supplier labels fail
Step at the DCWhat the DC system checksHow a supplier label fails it
Advance notice receivedThe despatch advice lists each SSCC and what that pallet holdsSSCC printed but never sent, or sent with the wrong contents
Pallet scanned at the doorThe SSCC barcode decodes and matches an SSCC in the advance noticeNo-read, unknown SSCC, or an SSCC already received before
Contents confirmedGTIN, count, batch and dates on the label agree with the noticeWrong case GTIN, count or batch; missing FNC1 so fields run together
Put awayLocation recorded against the SSCCLabel torn or missing on the scanned side, so the pallet is handled manually

GS1 rules make two of these failures easy to cause. An SSCC must stay the same for the life of the pallet and must not be reallocated within one year of shipment (GS1 General Specifications, 4.3.1), so a label printer that restarts its counter, or a relabel with a fresh number that was never sent, both produce a pallet the DC cannot match. How the SSCC and its Application Identifiers are built is covered in the GS1-128 and SSCC guide.

What should be checked before a pallet leaves?

The checklist below turns the GS1 rules into checks a dispatch line can make. GS1 places all barcodes on a pallet between 400 and 800 mm above the base, at least 50 mm from a vertical edge, and recommends two identical labels on adjacent sides (GS1 General Specifications). The Logistic Label Guideline repeats the two-side recommendation (GS1 Logistic Label Guideline).

Pre-dispatch checklist for pallet labels (an organising aid built from GS1 rules, not a GS1 document)
Check before dispatchGS1 rule or reasonHow to check it on the line
SSCC present and lowest on the labelThe SSCC in GS1-128 is the only mandatory element and sits in the lowest part of the labelReader at the labeller or after the wrapper
SSCC valid and newCheck digit correct; not reallocated within one year of shipmentReader checks the digit; the station keeps a list of issued SSCCs
SSCC known to the WMSThe DC links the SSCC to the advance noticeCompare the read SSCC with the WMS dispatch record
Data fields correct(02) contents only with (00) and (37); FNC1 after variable-length fields that are not lastParse the AIs, compare GTIN, count, batch and dates
Print grade above the minimumAt least 1.5/10/660 for GS1-128 in distributionVerifier on samples at start-up, after ribbon or stock changes
Label height and side400 to 800 mm above the pallet base, 50 mm from a vertical edge; two identical labels on adjacent sides recommendedReader height fixed to the label zone; read both sides and compare

The first four rows are content checks a reader does on every pallet. The fifth is a print grade that only a verifier gives. The last decides where the reader is mounted: a fixed reader aimed at the 400 to 800 mm band reads every pallet the same way.

What about chargebacks and rejected shipments?

Suppliers often ask about chargebacks when a GS1-128 label fails and a shipment is rejected. Whether a retailer charges, refuses the delivery or relabels it at the supplier’s cost is set in each supplier agreement. We have not found published South African figures, so this article does not quote any. What is certain is that every refused pallet costs a return trip, relabelling and a late delivery, whatever the agreement says.

How do you stop it at dispatch?

Two checks, because they prove different things:

  • Read every label before it leaves. A fixed code reader on the case conveyor or after the stretch wrapper reads each label, treats a no-read as a fail, and checks the SSCC against the WMS or dispatch record. Both required sides of a pallet can be read and compared. This catches unreadable, wrong, duplicated and missing labels on every unit. See pallet identification system and carton and pallet label verification.
  • Grade samples with a verifier. At start-up, after a ribbon or label stock change, and at set intervals, labels are graded with a calibrated verifier, or sent to GS1 South Africa’s verification service. This proves the print stays above the GS1 minimum, which a reader cannot prove.

Many readers report a quality indicator for each read. A falling trend is a useful early warning that the print head or ribbon needs attention, but it is not a formal grade.

How do you find the cause after a rejection?

  1. Get the DC’s reason and a photo of the label as it arrived. “No-read”, “unknown SSCC” and “label missing” point to different fixes.
  2. Classify it: print (no-read, intermittent read), data (wrong or unknown number, fields run together) or presence (missing side label, two different labels).
  3. For print: grade retained labels from the same run with a verifier. GS1 lists the usual causes, such as light bars, uneven inking or bar gain, with their remedies, so the report points to the printer setting to change (GS1 General Specifications, 5.12.5.11).
  4. For data: compare the SSCC and fields on the photo with the WMS record and the despatch advice sent.
  5. Close the gap with the matching dispatch check, so the next one is stopped at the dock rather than at the DC.

What should be recorded?

For each pallet or case: the SSCC read, the time, which sides were read, the result and, for failures, an image. When a DC queries a delivery, that record shows what left the dock. Readers and how they connect to the PLC and WMS are covered in choosing a fixed mount barcode scanner.

Separate the checks before the pallet leaves

A barcode read is one part of distribution releaseMatch product identity to the orderCheck symbol data and verification evidenceConfirm case-to-pallet associationRelease or hold the identified shipment
Schematic: A barcode read is one part of distribution release.

Keep the failed layer in the exception record. Correcting print quality cannot resolve a wrong product identity, and a correct pallet association cannot repair an unreadable case label. This sequence helps the production and warehouse teams send the problem to the right owner.

Frequently asked questions

Why was my order rejected at the distribution centre when the barcode scanned fine?
Either the print is close enough to the limit that it decodes on your scanner but not on the DC’s, or the code scans and carries an SSCC the DC does not expect, or a required label is missing. A verifier tells you about the first; checking the SSCC against your dispatch record at the dock catches the other two.
What barcode grade do carton and pallet labels need?
GS1 sets at least 1.5/10/660 for barcodes in general distribution, including ITF-14 and GS1-128 on cases and pallets. Grade 1.5 corresponds to ISO grade C. Individual retailers may set their own rules in supplier agreements.
Does an in-line reader prove the label meets the GS1 grade?
No. It proves every label decodes with the right content at that point. A formal grade needs a calibrated verifier measuring samples under the conditions the standard sets.
Why does the DC say our SSCC is unknown when the label scans?
The DC matches each SSCC with the advance notice it received. If the label was reprinted with a new number, the counter was reset, or the notice was not sent, the code scans and matches nothing. Check the read SSCC against the WMS before the pallet leaves.
Are barcode chargebacks common in South Africa?
We have not found published South African figures. Charges and refusals are set in each retailer’s supplier agreement, so check yours.
// About the author

Frank Guo is addaScan’s technical lead and writes the technical articles on this site. More about the team → LinkedIn

// Next step

Are pallets coming back from the DC?

Tell us how labels are printed and applied, what the DC reported, and how dispatch records are kept. We will tell you where a reading point would stop it, and where a verifier is still needed.