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METRO GROUP : ANNUAL REPORT 2011 : BUSINESS
→ GROUP MANAGEMENT REPORT : 6. INNOvATION MANAGEMENT
Operational use of RFiD
our Company is a pioneer in Radio Frequency Identification
(RFID) in the trade industry. The technology makes it possible
to automatically register product movements throughout the
entire supply chain and to transmit the information in a contactless
manner to IT systems. RFID helps retailers and
wholesalers to optimise processes in logistics and warehouse
management, to more efficiently design anti-theft systems
and to continue to increase customer satisfaction. The heart
of the technology is the RFID transponder, a miniature computer
chip with antenna. an electronic product Code (epC) is
usually stored on this chip. With an RFID reader, the epC can
be registered extremely quickly without physical or visual
contact and in large numbers and refers to product information
in the merchandise management system – including the
product’s origin, manufacturer and best-before date.
MeTRo GRoUp has been using RFID in logistics since 2007.
The technology facilitates more efficient processing in the
incoming goods area at about 400 Company locations. as a
result, MeTRo GRoUp remains the pacesetter in european
trading and retailing. We use RFID in our Metro Cash & Carry
sales divisions in Germany and France, at Real and at MGl
MeTRo GRoUp logistics in Germany. In our central warehouses
in Unna and Hamm, more than 700,000 pallets are
registered each year with the assistance of the technology.
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holistic logistics approach
In order to continue to reduce costs along the supply chain
and enhance service levels, MGl MeTRo GRoUp logistics
developed a new model that allows for a comprehensive
assessment of procurement, logistics and sales processes
based on empirical data. Calculations consider such parameters
as savings effects at the supplier level, shipment volumes,
the number of pallets, the number of interim stops per
delivery and the electronic Data Interchange (eDI) format. as
a result, the Company can identify and exploit existing optimisation
potential in a targeted manner. The German association
Materials Management, purchasing and logistics
(aMMpl) awarded MGl MeTRo GRoUp logistics its innovation
prize for the 2011 model.
Project promoting use of RFiD in outer packaging
During the reporting year, MeTRo GRoUp and additional
partners participated in a competitive bidding process sponsored
by the north Rhine-Westphalian Ministry for economic
affairs, energy, Building, Housing and Transport. Under the
motto of “smart.nRW”, the partners – including the company
Mars and the RWTH aachen University – developed a model
for optimising placement and integration of RFID transponders
into packaging. an additional aspect of the project is to
improve the flow of goods in stores. This includes being able
to report on the basis of information made available by RFID
exactly how many articles of each product are on store
shelves. “smart.nRW” is sponsored by the state of north
Rhine-Westphalia. The project spans three years.