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RFID in Retail: Case Studies


Reducing shrink/theft. Besides EAS, can alert for suspicious behavior at shelf ... Samples of CD and DVD video clips available. Map of store available; ... – PowerPoint PPT presentation

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Title: RFID in Retail: Case Studies

RFID in Retail Case Studies
  • DISC 4397 Section 12977
  • University of Houston
  • Bauer College of Business
  • Spring 2007
  • Source Loebbecke, 2003 Modernizing Retailing
    Worldwide at the point of sale MISQE.
  • Chappell et al. 2003 Auto-ID in the Box The
    Value of Auto-ID Technology in Retail Stores,
    Accenture whitepaper

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Value of RFID in Retail
  • Product receiving
  • Improved efficiency (currently manual)
  • Improved visibility (currently assumed receipt)
  • Maintaining shelf stock
  • Accenture has estimated that 33 of out-of-stock
    items are actually in the store
  • Maintaining product freshness
  • Reducing check-out labor

Source Accenture, 2003
Value of RFID in Retail
  • Reducing shrink/theft
  • Besides EAS, can alert for suspicious behavior at
  • Couple with surveillance cameras for high value
  • Returns and warranty authentication
  • Tracks history of the item
  • Recalls
  • Currently have to manually locate all items of
    the Stock Keeping Unit (SKU)

Source Accenture, 2003
Case Study Metro Group
  • Worlds fourth largest retailer
  • Headquarters in Duesseldorf, Germany
  • Employs 240,000 staff in 28 countries
  • About one-half its revenue comes from food
  • The Metro Groups Future Store Initiative

Metro Group
  • In 2002, started initiative to exploit potential
    of content integration
  • Aims
  • Provide more individual information and service
    offerings to shoppers
  • More effective process and communication
    functions to Consumer Packaged Goods (CPG)
  • Define new international standards for retailing,
    supporting the modernization process of the
    industry on a sustainable basis
  • Challenge
  • Tradeoff between competency-based islands and
    integrated solutions

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  • Test bed Rheinberg, Germany

Metro Group - Content Provision Devices
  • Personal Shopping Assistants (PSAs)
  • Attached to shopping carts customers
    automatically given a proposed shopping list
    based on previous purchases
  • Customer can modify list prices displayed
  • A running total maintained of items, scanned and
    placed in cart
  • Customer Cards
  • Attached to PSA. Repeat customers data

Metro Group - Content Provision Devices
  • Intelligent scales
  • Equipped with camera identification software
  • Customers put item on scale
  • Based on structure, size, color, thermal image,
    item is recognized via optical identification,
    weighed, and the label is printed.
  • Scale is linked to checkout counter via stores
  • Checkout
  • Checkout via PSA Total calculated while
    shopping. Customers initiate a Pay Go process
    data transferred wirelessly from PSA to checkout
  • Self-checkout
  • machines with touch screens, scanners and payment
  • Items scanned across a 360 degree scanner to
  • Items then placed in a bag weight compared to
    calculated weight of scanned goods

Metro Group - Content Provision Devices
  • Information terminals
  • Offer PSA functionalities w/o customer card
  • Provide comprehensive information about selected
    products meat, wine, cheese, baby care,
    multimedia products, etc
  • Ingredients, price, location in store
  • Show alternative/ equivalent products recipe
  • Samples of CD and DVD video clips available
  • Map of store available information can be
  • Electronic Advertising Displays
  • Centrally controlled by the stores WLANs
  • Show images and video animations on 19 screens
    attached to the ceiling specials on products in
  • Larger plasma screens in drugstore, detergent,
    and snack areas run promotional videos or product
    demos from database communicated via the WLAN

Metro Group - Content Provision Devices
  • Everywhere Displays (May 2004)
  • Proposed by IBM
  • Turn any surface walls, shelves, floors into
    a virtual, interactive touch-screen computer
  • Use a combination of projectors, rotating
    mirrors, video cameras, and software project
    images to surface react to customer responses
  • Shoppers touch surface as if interacting with a
    touch-screen computer
  • Used for digital merchandising show ads/ promos
    without the customer having to interact with
  • E.g. Project directions arrows on floor lead
    customers to the exact location of the wine they
    choose on an Information terminal

Metro Group - Content Provision Devices
  • Electronic Shelf Labels
  • Directly connected to price administration system
    and checkout system via WLAN
  • 37,000 labels have liquid crystal displays in 4
  • Each label has a battery, a radio receiver, and a
    tiny receiving antenna. Battery used to change
    information last 5 years
  • Personal Digital Assistants (PDAs)
  • Handed to employees to check stock levels in
    central merchandising management system
  • Can change electronic advertising displays, send
    and receive emails
  • Coupled with RFID readers, can carry out
    real-time inventory checks as they walk through
    the aisle.

Metro Group - Infrastructure
  • Structured data sources
  • Checkout system
  • Merchandise management system
  • Unstructured input data
  • Picture and product databases owned by producers
    and marketing departments
  • Data outlets PSAs, PDAs, electronic shelf
    labels, intelligent scales
  • Content integration platform Pirobase Content
  • Real-time integration to complement the existing
    WLAN, Ethernet, barcode, EDI, and RFID

Metro Group - Infrastructure
  • Pirobase content bus
  • Runs on application server between data sources
    and output formats
  • Meta-data repository
  • Extracts content from individual applications and
    respective data sources and supplies to output
    formats in real time
  • Output formats are decoupled from individual data
  • RFID
  • Item-level tagging for front-end content
  • Smart shelves inform staff when items need to be
  • Recognizes expired items

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Customer Benefits
  • Individuality
  • Reliability
  • Convenience
  • - See paper for statistics

Additional resources
  • http//www.microsoft.com/presspass/press/2004/jan0
    4/01-12metrogroupfuturepr.mspx -- Microsoft
  • http//www.ti.com/rfid/docs/news/news_releases/200
    5/rel06-13-05.shtml -- Texas Instruments
  • http//www.internetretailer.com/internet/marketing
    -- Checkpoint Systems
  • http//
    5glus Cisco
  • http//www.metrogroup.de/servlet/PB/menu/1048850_l
    2/index.html -- See video on Future history of
  • http//streaming.mgi.de/metro/Virtueller_Rundgang_
    VR_8-1_DSL.asx -- Future Store Video

Source Accenture, 2003
Silent Commerce
  • Silent commerce creates and captures value by
    deploying intelligent, interactive objects and
    machines that communicate with one another
    without human intervention
  • Enabled by technologies ranging from global
    positioning systems (GPS) to radio frequency
    identification (RFID)
  • Accenture (2002) believes that while eCommerce
    transforms how people communicate within and
    across firms, the intelligent interaction enabled
    by silent commerce between machines, parts,
    assemblies or any other item in any value chain
    is potentially as revolutionary as the Internet
    and World Wide Web
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