Customer Service Improvement and Cost Reduction with 12N Codes

By Ron Lembke, University of Nevada

At the conference and trade show in Las Vegas, the members of the Standards Committee had many opportunities to talk to RLA members and other show attendees about potential uses for our 12N codes.

12N Codes

In case you are not aware, the RLA Standards Committee has developed a method for incorporating multiple pieces of information into a single QR code, and this method has been added to the ANSI barcode standard, making it available globally. As an open standard, there is no licensing cost to anyone for using the standard.

Tracking Refurbishment Activities

This project started in response to a request from an RLA member company who wanted help tracking the repairs that had been made to a device. When members ask for help with something, we are happy to help.

The company wanted a sticker that would contain the results of diagnostic tests, so the repair third party would know exactly what to fix. The sticker could be put inside the device, so it could not get lost, unlike the paper-based system they were using, which was typically lost. After the repair was made, a second sticker could be placed inside the device, telling what repairs had been made, the date, and the identity of the authorized repair facility.

This way, when the device entered a repair facility later, by scanning the sticker, the technician could know that any modifications had been made by an authorized repair facility, what they did, and when.

The Power of 2D Barcoding

In order to store this much information in a small space, linear barcodes are out of the question. As the number of characters increases in a one-dimensional barcode, it becomes proportionally longer. But 2D barcodes, such as QR codes, can store up to 4,000 characters, which is a lot of characters. To give some size comparison, Abraham Lincoln’s famous Gettysburg Address is only 1,400 characters. You could write that almost 3 times in a single QR code.

Security of Encryption

The 12N standard allows the creator of the barcode to put all information in an unencrypted format, which can be read by anyone. However, for greater security, the user can also put anything they want to in an encrypted format, either using public key encryption, or private key encryption.

One of the partners working with the Standards Committee on this project is Denso Wave, the company that invented the QR code. Their scanners have the ability to use private key encryption, which ensures that the only people who can read and understand the contents of the QR code, or certain fields of the QR code, are people who have been authorized to use a properly-keyed scanner.

Not only are people without authorization forbidden from reading the contents of one of their encrypted fields, using Denso’s encryption, any un-authorized users cannot even see the encrypted version of the encrypted fields, further protecting against unauthorized access.

Security from Fewer Passwords

When the information about a product or a product’s repairs is stored in a 12N QR code, anyone can see the (unencrypted) information. This means that the information can be forwarded to other people without the need for them to access the company’s website. The fewer users who have accounts and passwords for the website, the fewer opportunities there are for those passwords to be compromised.

Refurbishing License Plate ID

One RLA member company we talked to in Las Vegas was very interested in using 12N codes to track the progress of a device inside a refurbishing facility. Currently, the devices have a label applied that matches up to the order number. At the end of the process, the information has to be typed into the UPS delivery system. A single 12N label can contain the order number, a device license plate number, and the customer’s name and address.

Reduced Labor, Errors, and Data Risks

In addition, when the device reaches the end of the refurbishing process, a 12N label can also store a UPS shipping ID, created at the start of the process. At many companies, user names and addresses are tightly controlled, for security reasons. By storing this information in an encrypted 12N code, no one can access that information, except for authorized personnel.

Additionally, by storing the information in a 12N code, the company will avoid the labor required for an employee to currently re-type all of the information into the carrier’s shipping system. This will save labor costs, and remove a significant opportunity for errors.

Shipping Addresses

Previously, the Standards Committee spoke with the US Postal Service about using 12N codes in place of their current 420 tracking barcodes, which are linear. The 420 codes are typically several inches long, and store a 30 character string. A 12N code can easily store all of this information, plus the addressee’s name, address, city, state, and ZIP code.

Hundreds of Data Fields Available

The 12N standard is an open standard, which also means that anyone can request additional data fields be made available. Any 12N label can hold as many or as few fields as the company wants to use. We currently have over 200 different fields available. If for example, a company wants a 12N label to include information about the minimum storage temperature or humidity for an item, its weight, its cost, country of origin, lot code batch code, whether it contains lead or meets RoHS standards, or is considered hazardous, these are all currently available, plus hundreds more.

Whenever a company discovers the need for another field to be created, the Standards Committee has a quick and easy process for nominating a new field and getting it created by the Committee.

Bill of Lading

One application area which the Standards Committee spoke to a number of RLA members about was the ability to pre-fill bills of lading. A 12N code can easily contain all of the information that any company is likely to want in a bill of lading. If all of the information is stored in a 12N code, the user can scan the 12N code with an iPad, and all of the fields can be automatically populated onto the paperwork. The customer receiving the shipment can then read through all of the information before signing the paperwork right on the iPad, no physical paper needed.

Point of Sale Product Registration

Another very interesting conversation we had in Las Vegas was with an RLA member company about point of sale registration. If the 12N code contains the serial number and the UPC of the product, a retail cashier only needs to scan one 12N code, instead of both a UPC and a separate serial number. This way, with a single scan, the retailer can find out the price to charge the customer, and capture the serial number of the unit.

By capturing the serial number from the 12N code, and getting the user’s name from their credit card or store loyalty program membership, the retailer can know exactly who purchased the item, and when. In the case of electronics items, this information could be used to automatically register the unit in the customer’s name, for warranty purposes.

Recalls

If the item being scanned has either a serial number or a lot code or batch code, these can also be associated with the customer’s loyalty card or name from the credit card. If there is a recall on the product, the retailer knows exactly which customers purchased products that are part of the recall.

This can be particularly valuable in the case of food or drug recalls. The retailer can actively reach out to any customers who purchased an item subject to a recall, and inform them of the dangerous situation, and advise them to return or dispose of the unsafe item.

Unlimited Product Information

One final application to discuss is presenting product information. A 12N code on an item can provide the user extensive product information. The code can contain as many web links as desired. This can allow the user to read the product description, watch an informative video, download the manual, or any other information they desire.

12N codes are particularly valuable in places where space is at a premium. Medical products have many governmental requirements, and space is at a premium. This is why the information on the packaging is printed in such tiny fonts. A 12N code can allow a company to place an unlimited amount of information at the user’s fingertips.

Summary

The Standards Committee had many interesting conversations with RLA members at the conference, and we were very pleased by the large number of members who said they had been thinking about ways to use 12N codes since they talked to us at last years’ show.

This article only scratches the surface of the benefits and opportunities for using 12N codes. Please contact us for more information about how 12N codes can reduce costs and improve customer satisfaction for your company.

Ron Lembke is an Associate Professor of Supply Chain Management at the University of Nevada, and Director of the Summer Logistics Internship Program. He received his Ph.D. and MS degrees in Industrial Engineering from Northwestern University, and his undergraduate degree in mathematics with a computer science concentration from St. Olaf College in Northfield, Minnesota. Ron is co-author, with Dr. Dale Rogers, of 'Reverse Logistics for Competitive Advantage,' a forthcoming CSCMP Explores publication, and 'Going Backwards: Reverse Logistics Trends and Practices,' published by the Reverse Logistics Executive Council. His reverse logistics consulting experience includes projects with a number of large American companies, and he has been an invited speaker on Reverse Logistics in Brazil, Canada, Colombia, England, France, Mexico, and Spain. In the Fall of 2005, Ron was on sabbatical as a visiting professor at the corporate offices of 3M in St. Paul, Minnesota. His research has appeared in journals such as the Journal of Business Logistics, The California Management Review, and The International Journal of Physical Distribution and Logistics Management. He is a two-term Past President of the Logistics Section of INFORMS, the Institute for Operations Research and the Management Sciences.