Dr. Gerd Wolfram, Executive Project Manager of the METRO Group Future Store Initiative, has reported back on the first weeks of using RFID technology in the German retailer’s supply chain.

METRO Group, the world’s fourth largest retailer is the first retailer to use RFID technology in its supply chain beginning November 2004. Radio Frequency Identification is the smart tag technology that can track and secure goods from the point of manufacture to the point of sale.

Dr. Wolfram took time out of his busy schedule to describe the progress of the roll-out when he officially opened Europe’s latest showcase RFID showroom in Barcelona. The showcase facility belongs to Checkpoint Systems, who is the preferred systems integrator for METRO Group along with IBM.

The facilities at Torre Mapre, adjacent to the Hotel Arts and a short drive from Barcelona’s main airport, include a demonstration of a complete RFID supply chain – from back of warehouse to front of store. Its function is to educate Checkpoint’s customers and suppliers on the emerging technology by showing them RFID in action.

Checkpoint’s supply chain technology includes a warehouse solution, a smart dock that accurately reads UHF labels on cases, verifying quantities are correct and allowing a real time knowledge of inventory levels to avoid out-of-stocks.

The department store solutions include smart rails and shelves, dual frequency hard tags and integrated RFID swing labels, a Smart Merchandising and Information point, a Smart Point Of Sale (POS) and Checkpoint’s dual frequency EAS/RFID Gemini antenna, the latter of which is already in use in METRO Group’s Future Store in Rheinberg, Germany.

The technology may be used by fashion retailers and shoppers alike, informing them which sizes and colours are in stock simply by scanning the tag. A screen displays all the information about the particular garment without the need to wait until a shop assistant becomes available. In addition, the Smart Merchandising screen located at the changing room can advise shoppers on complementary items to go with the items they are trying on, which may lead to greater sales opportunities.

METRO Group uses Checkpoint’s technology in both the Future Store, the company’s test bed for new technology in Rheinberg, Germany, and at its new RFID Innovation Centre at Neuss, Germany. METRO Group’s Dr. Wolfram used the event to describe the roll-out in detail.

The trial began on 2 November 2004 with METRO Group initially working with 20 suppliers to the group. This is being gradually extended to 100 suppliers, eight central warehouses and 269 different locations of Metro Cash & Carry, Real and Kaufhof in Germany.

Dr. Wolfram summed up the first weeks of the RFID roll-out: “We have learned a lot in the last few weeks. Our experiences are very positive and the cooperation with the suppliers involved runs very smoothly. We especially appreciate that there is a much better understanding about RFID now – not too long ago there has been a lot of misinformation surrounding RFID. The major thing to remember is that we are dealing with business process change. However the lessons that we can pass on are that those involved in implementing RFID should take a holistic view, build upon the global standards and set realistic expectations.”

Before cutting the inaugural ribbon to open the showroom, Dr Wolfram added: “I applaud Checkpoint for having the vision to open this showroom. There is a big difference between talking about RFID and being able to see it in action.”

Albert Roger, Vice President and General Manager RFID Solutions and Strategic Marketing, added: “We thank Dr. Wolfram for taking the time out his schedule to open this showroom. I am also honoured that he took this opportunity to describe for the first time METRO Group’s practical experience in rolling out RFID.”

“This showroom represents a step change for Checkpoint. We are building upon our existing RF/EAS heritage while at the same time presenting a vision of what the near future will bring in terms of key benefits to retailers and consumer packaged goods manufacturers.”

About the Metro Group

The METRO Group is the world’s fourth-largest retailing group. With its powerful brands, the METRO Group operates successfully in 28 different countries around the world – at some 2,300 locations and with more than 240,000 employees. In 2003, the company achieved net sales of € 53.6 billion.