German retailer Metro Group plans to become the world’s first retailer to deploy RFID throughout its supply chain, with 20 suppliers shipping RFID-tagged pallets into its distribution centers and stores starting in November.
Metro says it is deploying Websphere-based RFID and data management technology from IBM Corp. that will provide a standards-based infrastructure to collect, integrate and manage shipment data obtained from RFID tags and readers placed throughout its supply chain. "RFID is transforming the retail industry,” says Gerd Wolfram, project manager of the METRO Group Future Store Initiative.
The system will provide an instant web-based view of Metro’s complete shipping process, letting the retailer identify the exact location of goods at any stage of the delivery process from suppliers to distribution centers and stores, Metro says. RFID, or radio frequency identification technology, uses a system of RFID tags and readers to collect data on individual shipments and make shipment status available to managers over the web.
Metro says 20 of its consumer products suppliers will begin operating with RFID in November, followed by another 80 next year. By January 2006, it expects to have 300 suppliers sending RFID-tagged cases and pallets. By comparison, Wal-Mart Stores Inc. expects to have more than 125 suppliers sending RFID-tagged cases and pallets to its Dallas distribution centers next January, followed by most if not all of its suppliers a year later.
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