METRO Group RFID Rollout

1
METRO Group RFID Roll-out

• October 2005
• Scott Medford Vice President - RFID
• Intermec Technologies Corporation
• for
• Dr. Gerd Wolfram
• Managing Director MGI

2
RFID at METRO Group A Success Story

• January Founding of the METRO Group Future Store
  Initiative
• April Opening of the Extra Future Store
  Rheinberg
• November EPCglobal replaces Auto-ID center

• January Announcement of RFID rollout at NRF NY
• May 1st METRO Group RFID congress for suppliers
  Cologne
• July Opening of the METRO Group RFID Innovation
  Center Neuss
• November Start of RFID roll-out 1st phase

• January 100-days balance of the RFID roll-out at
  the NRF NY
• June 2nd METRO Group RFID congress for
  suppliers Cologne
• End of 2005 Start of RFID roll-out 2nd phase

2003
2000
2004
2005
3
METRO Group Future Store Initiative
IBM INTEL SAP T-SYSTEMS
CISCO SYSTEMS COCA-COLA DHL SOLUTIONS
HENKEL HEWLETT-PACKARD JOHNSON JOHNSON
KRAFT FOODS LORÉAL LOYALTY PARTNER
MICROSOFT NESTLÉ ORACLE PHILIPS PIRONET
NDH PROCTER GAMBLE SATO SYMBOL
TECHNOLOGIES TRICON VISA WINCOR NIXDORF
X-IDENT
ADT DEUTSCHLAND ALGOTEC ALPHA TONTRÄGER
AVERY DENNISON BIZERBA BOSTON CONSULTING
GROUP CHECKPOINT SYSTEMS CHEP EYCKELER MALT
FEIG ELECTRONIC FUJITSU SIEMENS COMPUTERS
GILLETTE HINTZPETER PARTNER INTERMEC KURT
SALMON ASSOCIATES LIEBHERR LOGOPAK SYSTEME
METTLER TOLEDO MULTIQ NCR OAT SYSTEMS
ONLINE SOFTWARE PAXAR SIEMENS BUSINESS SERVICES
SONOPRESS TOMRA TOSHIBA TECUPM RAFSEC
WANZL WMS ZEBRA
4
Our Vision RFID along the complete supply chain
Manufacturer
Distribution Warehouse
Store/Outlet
Shelf management
Shelving
Inventory management
Incoming merchandise
Loading
Outgoing merchandise
Storage
Order picking/additional merchandise
Reserve area
Production
Incoming merchandise - precise verification
Incoming merchandise
Delivery notification (DESADV)
5
METRO Group RFID-Roll-out

• Started November 2004 with around 20 industry
  partners as well as selected warehouses stores
  and branches of the METRO Group

Launch of the roll-out

• Incoming/outgoing goods inventory replenishment
  automatic reconciliation

Focus of theroll-out
RFID transponderson...

• Logistical units (pallets) and retail units
  (boxes)
• Individual items are not included in the RFID
  roll-out

6
Phase 1 Participation of three METRO Group sales
divisions since November 2004

• Galeria Kaufhof
• Apparel/Textiles
• 3 Suppliers
• 5 DCs

• Metro Cash Carry
• Grocery General Merchandise
• 20 Suppliers
• 2 Stores
• 1 DC

• Real
• Grocery
• 12 Suppliers
• 11 Stores
• 3 DCs

7
Suppliers involved today
DR. OETKER NESTLÉ MILASAN MAGGI PAPSTAR
3M FABER CASTELL JOHNSON JOHNSON 3M
SCOTCH GILLETTE GLAXOSMITHKLINE SCHWARZKOPF
HENKEL LEVER FABERGÉ TRIUMPH GERRY WEBER
ESPRIT PAPSTAR KRAFT SARA LEE PAPSTAR
TIP GILLETTE BRAUN HAKLE KIMBERLY SCA
Suppliers involved Q2/3 2005
NESTLE PURINA HENKEL WASCHMITTEL COLGATE
PALMOLIVE UNILEVER BESTFOODS SCHWARTAU
MELITTA MEDION BEIERSDORF FUJITSU SIEMENS
MATTEL BOSCH SIEMENS HAUSGERÄTE WAGNER PIZZA
FREIBERGER LOREAL INTERUNION
With availability of GEN 2 about 100 suppliers
8
RFID Rollout Still a long way to go
METROGroup
3
Distribution Lines
26
Supplier
111
RFID Gates
218.108
Pallets
79.100
Cases
82.800
Items
879.979
EPC Reads
9
Standard rollout portal setup
Reader
Motion Sensor
Light stack
Metal protection
4 antennas
10
DC Essen
DC Essen
1 Portal (Dock Door)
1 Portal (Dock Door)
Standalone PC
Standalone PC
1 Standalone PC
1 Standalone PC
DC Packing
DC Packing
4 Portals (e.g. Trash Door)
4 Portals (e.g. Trash Door)
Extra
Rheinberg
RFID Controller
1 Standalone PC
1 Standalone PC
for Check Out and Gates
Customer Information
Customer Information
Standalone PC
Standalone PC
9 Exit Gates
9 Exit Gates
RFID Server (Rack)
14 Check Out
14 Check Out
Ethernet Switch
2 Entry Gates
2 Entry Gates
to SAP SII
to SAP SII
11
Backend System

• Scanning PID
• Reading UID
• Create a UID-/ PID-
• Message

• Cache UID / PID
• Gate Controller
• Messaging

RFIDServer
RFIDCtrl
Reader
Picking Zone Food Non-Food Cross-Docking

• Reader and Motion detector - Controller
• Gate- / PID -Messages

• Reader and Motion detector- Controller
• Gate- / PID -Messages

RFIDCtrl
RFIDCtrl
RFIDCtrl
Reader
Reader
Reader
Reader
Reader
Reader
Reader
Reader
Reader
1.
2.
10.
11.
12.
20.
21.
22.
29.
39.
40.
20.
19.
1.
2.
3.
4.
21.
22.
23.
24.
41.
42.
43.
44.
57.
12
Pallet-level roll-out instant data processing
and verification
Reading initiated by motion detector
Tag Data (SSCC) transmitted to
decentralized edge node server via LAN network
SSCC sent to Central Server Matched with
EDI data from the Merchandise Management
Systems

• Green light
• if Serial Shipping
• Container Code matches data from
  Merchandise Manage-ment Systems

13
(No Transcript)
14
(No Transcript)
15
100 days of RFID High reading accuracy in first
trials

• Hanger goods conveyor
• 99

• Stackable goods conveyor
• 99

• Portal for incoming and
• outgoing goods
• Varying results
• up to 99

• Returnable transport
• items
• gt 90

16
(No Transcript)
17
100 days of RFID Technical challenges

• Installation and Optimi-zation of different
  setups for various transportation modes depending
  on product group (i.e. hanger goods conveyor
  portal for incoming and outgoing goods)

• Integration of different backend systems

• Process improvement
• matching of motion detectors and readers
• reader configuration
• tag is damaged wrongly attached or missing
• DESADV too late/missing

18
NEXT Steps

• Enhancement of suppliers and locations
• Enhancement of RFID based processes (e.g.
  frontstore backstore separation RFID equipped
  forklifts etc.)
• Start with case level tagging

• prerequisite for all further rollout activities
  is the availability of Gen 2 products

19
Expected improvements of Gen 2 by end users

• Worldwide standard
• Price decline for RFID labels
• Use the RFID advantages in global supply chains
• Increasing investment safety
• Better performance
• Longer read ranges
• Higher anti collission (about 600 Tags in a sec.)

20
User Requirements
21
ISO 18000 and EPC Gen 2

• On track toward ISO standard
• ISO and EPC numbering system conflict resolved
• One bit (bit 17 of PC bits) defines whether EPC
  or ISO (AFIs)
• EPC UHF Gen 2 v 1.0.9 submitted to ISO SC 31/WG
  4/SG 3 on January 25
• Proposed as amendment to ISO 18000-6C
• Should be an ISO standard in early 2006

22
Metro / Intermec next steps

• Innovation Center
• Gen2 performance tests
• EN 302 208
• future store
• Update of existing infrastructure
• RFID roll out
• Full commitment to support the Metro Solution
  Team
• EN 302 208 and Gen2
• Multi Protocol environment

23
(No Transcript)
24
(No Transcript)
25
(No Transcript)
26
(No Transcript)
27
(No Transcript)
28
(No Transcript)
29
METRO Group Experience the future of retailing
with the third largest retailer in the world
30
(No Transcript)