Discover a modern labeling solution for GS1 and SSCC compliance. Learn how to generate accurate, scan-ready labels to meet retailer expectations.
Shipping labels play a bigger role in retail fulfillment than many suppliers might realize. A single barcode that doesn’t meet proper formatting rules can slow down receiving, cause shipment rejections, or lead to unexpected chargebacks. These issues affect companies of every size, but smaller suppliers often feel the impact the most because they’re working with limited tools and inconsistent labeling processes.
As supply chains rely more on automation and standardized data exchange, retailers expect every pallet and carton to have labels that meet strict GS1 and SSCC requirements. This means suppliers need a labeling solution that’s accurate, easy to use, and consistent with modern compliance expectations. For many teams, the first step in meeting those expectations is understanding how modern EDI supports labeling accuracy across different retail workflows.
This guide walks through the challenges companies face with barcode and pallet labeling, explains what GS1 and SSCC standards require, and shows how a modern tool like Orderful’s Labels App makes compliance easier for growing businesses.
About Orderful
If you're struggling with inconsistent shipping labels, retailer chargebacks, or manual labeling processes that can't guarantee GS1 compliance, Orderful's Labels App delivers a simple, browser-based solution for creating accurate SSCC-18 and GS1-128 barcodes in seconds. The app automatically applies GS1 formatting rules including proper extension digits, company prefix integration, serial reference assignment, and check digit validation, eliminating the errors common with spreadsheets and outdated desktop software. Built specifically for smaller suppliers and web EDI users who need affordable labeling solutions without complex software installations, the Labels App provides consistent, scan-ready labels that meet strict retailer requirements for Walmart, Costco, Target, and other major partners. As your shipment volumes grow, the tool scales effortlessly to support faster workflows without adding operational complexity. The Labels App is part of Orderful's broader supply chain ecosystem designed to help suppliers improve accuracy, strengthen retail relationships, and modernize data exchange processes. Beyond labeling, Orderful's platform supports complete EDI automation, real-time transaction validation, and seamless integration with your existing systems. You can try the Labels App to create compliant labels instantly, explore how the platform works, and review our pricing to see how simple it is to eliminate labeling errors and support smoother supply chain operations across all your retail partnerships.
Shipping Label Problems and Pain Points
Retailers like Walmart, Costco, and Target expect every pallet and every carton to arrive with shipping labels that follow strict GS1 and SSCC formatting rules. When labels don’t meet those requirements, companies can run into costly setbacks long before products reach store shelves.
One of the most common issues that retailers encounter is inconsistency. Many smaller suppliers still create carton or pallet labels with spreadsheets, templates, or older desktop software. These tools don’t validate GS1 formatting, check digits, or serial references, which makes it easy to generate labels that look correct but fail during scanning. Even a single misplaced character in an SSCC number can cause the label to be rejected at receiving, forcing teams to reprint and relabel shipments.
The Cost of Labeling Issues
At scale, these issues translate into real costs, such as extra labor hours, delayed purchase orders, and chargebacks for non-compliance. For organizations shipping to multiple retailers, the complexity multiplies because each partner has slightly different rules for label placement, data structure, and pallet identification.
Smaller suppliers and web EDI users face additional challenges because they often lack affordable labeling software that includes GS1 validation. Without a reliable labeling solution, they’re forced to rely on manual processes that can’t guarantee accuracy. Over time, these preventable errors chip away at operational efficiency and strain relationships with retail partners that expect consistent, scan-ready shipments.
What Is GS1/SSCC Labeling?
GS1 and SSCC labeling create a standardized way for retailers, distributors, and logistics teams to identify and track shipments across the supply chain. When companies consistently follow GS1 rules, it makes it easier for retail partners to receive goods quickly and avoid label-related errors.
At the center of this system is the serial shipping container code, or SSCC, an 18-digit number that uniquely identifies a logistic unit so it can be tracked end-to-end across the supply chain. The SSCC includes several critical components that work together to ensure the number is globally unique and formatted correctly for scanning:
Extension digit: A single digit used to increase the numbering capacity of the SSCC and help differentiate between logistic units.
GS1 company prefix: A unique identifier assigned to a business by GS1, ensuring the SSCC ties back to the correct supplier.
Serial reference: A sequence of digits your company assigns to identify each individual pallet or shipment uniquely.
Check digit: A calculated digit that validates the entire SSCC using a special algorithm to ensure the number scans correctly.
Why Labeling Accuracy Matters in the Modern Supply Chain
Accurate labeling is one of the simplest ways for companies to keep products moving on time. Every pallet and carton relies on a scannable barcode that tells warehouse systems where an item came from, where it’s going, and how it should be handled. When labels are incomplete or incorrectly formatted, distribution centers can’t route shipments efficiently, slowing down receiving and impacting downstream inventory management.
For high-volume retailers, any scanning error can create a bottleneck. A mislabeled pallet may require manual inspection and reprocessing before moving forward. The extra work slows down warehouse workflows and increases the likelihood of delays.
Accurately printed labels help prevent misrouted shipments, misplaced inventory, and incorrect replenishment. When barcode data matches what the retailer expects, warehouses can process goods quickly and keep shelves stocked. This accuracy becomes even more important as supply chains rely on automation, where every scan updates a system that coordinates purchasing, logistics, and store-level inventory. With the right labeling solution, companies can reduce errors, improve operational efficiency, and support smoother coordination across retail partners and logistics services.
Solution: Orderful Labels App
Orderful’s Labels App gives suppliers a simple way to create GS1-compliant shipping labels without relying on templates or outdated software. It generates accurate SSCC and GS1-128 barcodes as needed, making it easier for teams to keep shipments moving and meet retailer expectations.
Simple, Accurate GS1 and SSCC Label Generation
The Labels App creates SSCC-18 and GS1-128 labels instantly, using the correct data structure and formatting required for supply chain compliance. Companies don’t have to worry about spreadsheets, manual entry, or adjusting barcode layout by hand, because the tool applies GS1 rules automatically. The app produces a clean GS1-128 barcode that encodes the necessary shipment identifiers. With browser-based access, users can generate labels in seconds without installing traditional label-printing software.
Built for Small Suppliers and Growing Operations
The Labels App is an ideal fit for smaller suppliers and web EDI users who need an affordable labeling solution that supports retailer compliance. Many businesses don’t have access to high-end barcode software. This application gives them a reliable way to create carton or pallet labels that meet GS1 standards.
Instead of using different templates across teams or locations, everyone generates labels with the same structure and formatting. This consistency reduces labeling errors, prevents scanning issues at receiving, and helps organizations build stronger relationships with their retail partners.
As volumes increase, the Labels App supports faster workflows by taking the guesswork out of label creation. Companies can generate print labels that are easy for scanners to read without slowing down fulfillment. For teams looking for a dependable entry point into Orderful’s broader supply chain ecosystem, it offers the accuracy and simplicity needed to stay compliant as shipment volumes scale.
Who Needs a Modern Labeling Solution?
Manufacturers Shipping to Retailers
Retail partners depend on accurate pallet and carton labels to process shipments quickly at their distribution centers. A modern labeling solution helps manufacturers create consistent, compliant labels that prevent delays, reduce rework, and support smoother receiving at high-volume facilities.
3PLs and Logistics Providers
Without a standardized process, it’s easy for labeling errors to slip through and disrupt warehouse operations. A reliable labeling solution allows third-party logistics (3PL) providers to generate accurate SSCC and GS1-128 labels for any customer, improving operational efficiency and reducing manual corrections.
Distributors and Pallet-Level Operations
Receiving workflows can break down when labels fail to scan, leading to misrouted or delayed shipments. Using a compliant pallet label generator helps distributors maintain accuracy as order volumes grow and retailer requirements evolve.
Small Businesses and Web EDI Users
Many small suppliers and web EDI users rely on templates or manual formatting, which increases the risk of barcode errors or incorrect serial references. A modern labeling solution provides these teams with an affordable, dependable way to create GS1-compliant labels that meet retailer standards without adding extra complexity to their workflow.
Improve Your Labeling Accuracy and Retail Compliance
Accurate shipping labels help ensure your pallets and cartons move smoothly through retail distribution centers. When every SSCC and GS1-128 barcode is formatted correctly, warehouse teams can scan shipments quickly and avoid extra work at receiving. A reliable labeling solution gives your business the consistency needed to reduce errors and support smoother supply chain operations. For additional guidance, you can review our article on creating GS1-compliant labels to meet industry standards and try our tool to create labels in seconds.
Orderful’s Labels App is just one part of a larger ecosystem designed to help suppliers improve accuracy, strengthen their relationships with retailers, and simplify how they exchange data. If your team is exploring ways to modernize supply chain processes or reduce manual work across your operations, speak to an EDI expert to learn how Orderful supports long-term growth.
Labeling Solution FAQs
What is GS1/SSCC labeling?
GS1 and SSCC labeling creates a standardized system for retailers, distributors, and logistics teams to identify and track shipments across the supply chain. The SSCC (Serial Shipping Container Code) is an 18-digit number that uniquely identifies each logistic unit for end-to-end tracking. The SSCC includes four critical components: an extension digit to increase numbering capacity, a GS1 company prefix uniquely assigned by GS1 to identify your business, a serial reference that you assign to each individual pallet or shipment, and a check digit calculated using a special algorithm to validate the entire SSCC for scanning accuracy. GS1-128 barcodes encode this information along with other shipment identifiers, enabling automated warehouse systems to process pallets and cartons efficiently. Consistent GS1 labeling prevents receiving delays, scanning errors, and retailer chargebacks.
Why do retailers require GS1-compliant shipping labels?
Major retailers like Walmart, Costco, and Target require GS1-compliant shipping labels because their automated distribution centers depend on scannable barcodes to process shipments efficiently. When every pallet and carton arrives with properly formatted SSCC and GS1-128 labels, warehouse systems can automatically identify where products came from, route them to correct locations, update inventory systems in real time, and coordinate replenishment without manual intervention. Non-compliant labels that don't meet GS1 formatting rules cause scanning failures that slow down receiving, require manual inspection and reprocessing, create bottlenecks in high-volume facilities, and trigger chargebacks for compliance violations. As supply chains increasingly rely on automation, accurate GS1 labeling becomes essential for maintaining operational efficiency and meeting retailer expectations for fast, error-free processing.
What are common shipping label problems that cause retailer rejections?
Common shipping label problems include inconsistent formatting when suppliers use spreadsheets, templates, or outdated desktop software that doesn't validate GS1 standards, incorrect SSCC structure with misplaced characters, missing digits, or invalid check digits that fail scanning, non-compliant GS1-128 barcodes that don't encode required shipment identifiers properly, and label placement errors that don't meet specific retailer requirements. Even single-character mistakes in SSCC numbers cause rejection at receiving, forcing teams to reprint and relabel shipments. These issues result in extra labor hours for corrections, delayed purchase orders while shipments are held, retailer chargebacks for non-compliance, and strained relationships with retail partners expecting consistent quality. Smaller suppliers face additional challenges when lacking affordable labeling software with built-in GS1 validation, forcing reliance on manual processes that can't guarantee accuracy.
How does Orderful's Labels App simplify GS1 labeling?
Orderful's Labels App eliminates the complexity of creating GS1-compliant shipping labels by automatically generating accurate SSCC-18 and GS1-128 barcodes using correct data structures and formatting required for supply chain compliance. The browser-based tool requires no software installation or technical expertise—users can generate print-ready labels in seconds without managing spreadsheets, templates, or manual barcode adjustments. The app applies GS1 rules automatically including proper extension digits, company prefix integration, serial reference assignment, and check digit calculation to ensure every label scans correctly. Built specifically for smaller suppliers and web EDI users who need affordable labeling solutions, the app provides consistent formatting across teams and locations, reducing labeling errors and preventing scanning issues at receiving. As shipment volumes grow, the Labels App supports faster workflows without adding complexity to fulfillment operations.
Who needs a modern GS1 labeling solution?
Manufacturers shipping to retailers need GS1-compliant labels to prevent delays and rework at distribution centers where retail partners depend on accurate scanning for fast processing. 3PLs and logistics providers require standardized labeling processes to generate correct SSCC and GS1-128 labels for multiple customers without operational disruptions from labeling errors. Distributors handling pallet-level operations need compliant labels to maintain receiving accuracy as order volumes grow and retailer requirements evolve. Small businesses and web EDI users often lack access to expensive barcode software, making affordable modern labeling solutions essential for meeting retailer standards without added complexity. Any supplier facing inconsistent labeling, retailer chargebacks, scanning failures, or manual label creation processes benefits from automated GS1 labeling tools that ensure compliance and improve operational efficiency across retail partnerships.
What information does a GS1-128 barcode contain?
A GS1-128 barcode encodes multiple data elements that enable automated supply chain tracking and processing. The barcode always includes the 18-digit SSCC (Serial Shipping Container Code) that uniquely identifies the logistic unit, along with application identifiers (AIs) that define what each data field represents. Additional encoded information may include shipment destination and routing details, product identifiers like GTINs (Global Trade Item Numbers), quantity and weight information, batch or lot numbers for traceability, expiration dates for perishable goods, and purchase order or shipment reference numbers. The GS1-128 standard uses a specific barcode symbology that warehouse scanners can read to automatically update inventory systems, route shipments correctly, and verify shipment contents match advance ship notices. Proper GS1-128 encoding ensures that all critical shipment data is machine-readable throughout the supply chain.
How do labeling errors impact supply chain operations?
Labeling errors create cascading problems throughout supply chain operations. At the warehouse level, labels that fail to scan require manual inspection and reprocessing, creating bottlenecks that slow down receiving for all shipments in queue. Distribution centers can't route pallets efficiently without accurate barcode data, leading to misrouted shipments, misplaced inventory in wrong locations, and incorrect replenishment orders when systems don't update properly. These delays impact retail store operations by causing stockouts when products don't reach shelves on schedule and disrupting automated ordering systems that rely on accurate inventory data. For suppliers, the business impact includes retailer chargebacks for non-compliant labels, damaged relationships with retail partners expecting consistent quality, delayed payments while shipments are held for corrections, and lost sales opportunities when products can't be processed quickly. Modern labeling solutions prevent these issues through automated GS1 validation.
