Metro Group Case

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Metro Group Case 1. What is your assessment of Metro’s approach to implementing RFID? Has the project been a success thus far? It seems that the pallet-level rollout of the RFID system was executed with careful planning and thought. Wolfram and Mierdorf understood the large scope of the plan and pre-planned several of the steps they would need to take prior to initiating the test-run. These steps included forming a steering committee, creating an Innovation Center for hands-on experience and testing, development of a middleware system, and training. Each of these steps indicates an organizational structure behind the process redesign. A few problems surfaced during the rollout including human error with the RFID tagging as well as issues with the middleware system. Wolfram and Mierdorf may have overlooked the importance of training, especially when the responsibility lies with the suppliers who are ultimately looking out for themselves, rather than Metro. Before moving on to a case-level rollout I believe Wolfram and Mierdorf need to work on streamlining the efficiency of the pallet-level system first. So far, I think they have done a nice job on preparing for the roll out of the pallets. It seems a lot of planning went into it and I think it was a good idea to try the new process in 10 DC's and 250 stores to see the initial reaction of the implementation. I also think creating the MGI METRO Group Information Technology company was something done very well. This company was able to help with customization and planning which served well for the company. 2. Explain the costs and benefits of implementing RFID at the pallet level and at the case level. What savings might be realized from full-scale implementation of RFID (for both pallet-level and case –level implementations)? Implementation of the RFID system at the pallet level appears to have positive
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