Shan Huang Yanqing Liu Ziying Chen
SBS stockholm university
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RFID at METRO GROUP
Seminar 1
Shan Huang Yanqing Liu Ziying Chen
SBS stockholm university
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RFID at METRO GROUP
Seminar 1

In the recent years, Radio Frequency Identification (RFID) technology has been developed. Along with such development, the implementation of RFID systems in retail supply chains can be realized and improved. In early 2004, METRO Group (Metro) announced that RFID technology would promote to 250 stores and 10 warehouses together with 100 suppliers. In 2005, after expanding rollout RFID in Metro, the benefits and problems of using RFID both emerged. In this article, the decision on whether Metro should implement RFID in its supply chain and which level (pallet and case level) is more suitable for Metro have been proposed after identifying, analyzing and evaluation of RFID implemented at Metro, the implementation process and action plans for further development of using RFID are also illustrated.

RFID is the wireless use of electromagnetic fields to transfer data, for the purposes of automatically identifying and tracking tags attached to objects [1]. Since 1999, with the reduction of cost of RFID tags, RFID technology is used to track products in retail supply chains. Some big retailers have announcements of RFID technology rollout at their supply chains. The METRO Group is the world’s third-largest retailer with the annual sales of €56.4 billion in 2005. Since 1999, Metro has shown its interest in RFID technology. In 2003, the test of RFID has started in Metro. In 2005, RFID on pallet level rollout have been expanded to 33 suppliers, 13 stores and 9 DCs (distribution center). And some leaders of Metro believe that RFID technology can bring many benefits of shrink reduction,