Rfid Case Essay

1057 WordsNov 7, 20115 Pages
Date: April 27, 2011 To: Mierdorf and Wolfram From: Taili Huang (9:00AM) Subject: Future Supply Chain: RFID Metro’s RFID Approach Metro’s approach to RFID technology implementation has made itself a founding and driving force in the retailing and supply chain industry. I believe Metro’s effort has been successful so far. Metro’s commitment in IT researching and implementations started at 1996 when Metro founded MGI with the help from Mierdorf. At 1999, Metro became a significant force in RFID technology by co-founding GCI and closely working with Auto-ID Center to develop EPC. Metro established FSI in 2003 in order to test and analyze the future of RFID at an Extra store. Metro successfully attracted more than 40 partners including some large brands. This initiative successfully established necessary industrial relationships for further RFID implementation. By testing RFID technology in FSI, Metro successfully identified some of the major benefits of RFID tagging. Metro strengthened its relationship with its partners by opening Innovation Center in July 2004. It provided Metro’s partners hands-on experiences of RFID technology. In November 2004, Metro began deploying RFID at the pallet level with few large suppliers and 20 Metro locations. In mid-2005, Metro’s RFID implementation involves 33 suppliers, 13 stores, and 9 DCs. The implementation is successful since Metro’s read accuracy increased from 30% to over 90%. However, Metro’s RFID implementation was not without flaws. First of all, the number of suppliers and store location is far from its goal (250 stores, 10 DCs, and over 100 suppliers). The lack of suppliers involved limited the benefits of RFID. Secondly, suppliers sometimes forgot to put tags on pallets or misplace tags. Thirdly, Metro experienced low quality tags since suppliers tried to economize. Finally, suppliers mixed barcodes with

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