Germany : METRO deploys RFID technology in European retail sector

METRO Group in late October completed a major step in the nation-wide operational deployment of the radio frequency identification (RFID) technology in Germany.
At 180 locations operated by the sales brands Metro Cash & Carry and Real as well as the central warehouses of MGL METRO Group Logistics, deliveries can now be recorded automatically.
The remaining locations are scheduled for conversion next year. This is the largest operational rollout of this technology in the European retail sector.
Use of RFID technology raises efficiency in logistics
With RFID tags on each shipping pallet, deliveries can be checked for completeness within seconds. RFID readers at the goods-in gates can automatically recognize and identify incoming pallets.
With a software, the system checks whether the deliveries match the order prior to registering them in the inventory management system. Also deliveries from the warehouses to the stores of the METRO Group are monitored with RFID.
The improved processes help prevent incorrect deliveries and increase the accuracy of the inventory information.
RFID also benefits the suppliers, for example in the goods issuing control. Furthermore, the exchange of data with the vendor is facilitated.
More than 180 suppliers are already participating in the project and discussions are under way with all other suppliers. METRO Group and its partners under the Future Store Initiative offer support to allinterested parties. Three tailor-made “starter kits“ facilitate the start into the future of retailing for suppliers.

Also at the international level, METRO Group is extending the deployment of the radio frequency technology. Starting from late 2007, around 100 suppliers from China and Vietnam will participate in the RFID pilot project “Tag it Easy“ and tag their export packages with RFID transponders. This way, distinct efficiency gains can also be achieved in the supply chain between Asia and Europe.
Better customer service thanks to RFID:
In addition to the benefits in logistics, RFID also brings appreciable benefits for the customers. At the Galeria Kaufhof department store in Essen, METRO Group is testing which RFID-supported applications the customers actually use.
Here,“Smart Dressing Rooms” offer additional product information and “Mobile Assistants” help the employees fulfill the customer requests faster, for example.
Close cooperation with partners of the Future Store Initiative
METRO Group cooperates with its partners under the METRO Group Future Store Initiative to create the infrastructure required for the practical application of this technology in Germany.
IBM supplies the software for the RFID rollout. IBM and Checkpoint take on the system integration of the portals with readers from Intermec Technologies or Sirit.
“For us it was important to be able to rely on competent general contractors for the realization of our concept“ summarized Dr. Gerd Wolfram, Managing Director of MGI METRO Group Information Technology, “The service offered by IBM and Checkpoint was one of the key factors for the smooth operational rollout of the system“.