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METRO Group RFID Rollout

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January: Founding of the METRO Group Future Store Initiative ... CISCO SYSTEMS COCA-COLA DHL SOLUTIONS HENKEL. HEWLETT-PACKARD JOHNSON & JOHNSON KRAFT FOODS ... – PowerPoint PPT presentation

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Title: 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 TEC UPM 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 the roll-out
RFID transponders on...
  • 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
METRO Group
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

RFID Server
RFID Ctrl
Reader
Picking Zone Food, Non-Food, Cross-Docking
  • Reader and Motion detector - Controller
  • Gate- / PID -Messages
  • Reader and Motion detector - Controller
  • Gate- / PID -Messages

RFID Ctrl
RFID Ctrl
RFID Ctrl
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
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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

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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

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29
METRO Group Experience the future of retailing
with the third largest retailer in the world
30
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