MANAGEMENT
3.2 MANAGEMENT
3.2.4 The METRO Group Future Store
The METRO Group Future Store Initiative in Rheinberg was found as a cooperation project between METRO Group, SAP, OAT systems, Oracle, Intel, and IBM as well as other partner companies from the information technology and consumer goods industries. They all aim at promoting innovations in retailing on a national and international level. In the long run the initiative sets the stage for creating or implementing existing stan- dards for retailing that can be implemented on an international scale.
The technologies that the METRO Group Future Store Initiative used in a test store were aimed at making shopping more convenient for consumers through better service and at improving processes in retailing. Different combinations of RFID applications were tested in which a completely inte- grated system was implemented for inventory management, information management, and check-out.
86 RFID in the Supply Chain: A Guide to Selection and Implementation
Let’s take a look at each of the three aspects of the integrated system.
They are inventory management, information management, and check-out.
3.2.4.1 Inventory Management
The Future Store Initiative focuses on the development of new processes in inventory management using RFID technology. Merchandise goods can be tracked at various locations as they move from one end of the supply chain to another in the central warehouse and for the delivery and storage of goods and shelf filing. Using the data captured from the RFID tags, goods can be reordered according to demand and inventory safety check.
All goods are sorted on RFID-tagged pallets in a central warehouse before they are delivered to the Future Store. Data captured from RFID tags are transferred to an electronic RFID merchandise management system, allowing the goods to be registered with the respective information in the system. Once registered, the locations of goods can be tracked throughout the entire logistic chain.
When ready, the loaded pallets are moved to the exit zone of the central warehouse, where an electronic gate is installed with an RFID reading device.
When passing this gate, the data in the chips of the tags affixed to the cartons and pallets is transmitted to the merchandise management system.
When goods are received at the Future Store, employees transport the pallets from the truck through an RFID gate at the backstore entrance.
The data of the chips on each pallet and crate are read. Once the merchandise management system is updated, the supermarket employees can compare the received goods with the order to determine if the order was met or if the items were over-shipped, under-shipped, or missing.
After the goods are delivered for storage in the back room of the Future Store, each storage position is affixed with an RFID tag. When storing the goods, the employees use a handheld scanner to read this tag into the system.
When taking goods to the sales room to refill the shelves, the employees pass an RFID gate at the exit of the backstore area, where the data on the RFID chips affixed to the cartons is captured for transmission to the mer- chandise management system. Cartons that could not be emptied due to a lack of shelf space are returned to the backstore area. As they pass at the gate, tag data is updated and then transferred to the system. When the merchandise is emptied from the carton, the RFID tags are deactivated. But what happens when the executives need the information from those tags that have been deactivated?
3.2.4.2 Information Management
Innovative technologies and devices offer a whole new range of information possibilities in the Future Store. The Personal Shopping Assistant, information
RFID Applications in Supply Chain Management 87
terminals, and advertising displays, for example, help customers to find products and advise them with comprehensive information when choosing the goods. A customer can also take advantage of intelligent scales, elec- tronic shelf labels, and smart shelves. Let’s take a brief look at each device.
Personal shopping assistants are handheld mobile computers, each of which is given to a customer with a personal loyalty card when the customer enters the store. After using the loyalty card, the customer gains access to a range of individual services, such as shopping list recall, product shelf map, and product price search. In the first instance, the customers can recall their own shopping list comprising the purchases of the last few weeks. In the second instance, the customers can search a product on this device to find out exactly where it is located in the store. In the third instance, customers can check out the price of and other information about the product. When the customer is finished with shopping, the list is transferred to the check-out (automatic or cash).
Info-Terminals are touch-screen displays, serving as shopping aids.
They offer an array of information on product lines such as meat, wine, fruit and vegetables, or baby products. Customers also receive updated recipe suggestions.
An intelligent scale is capable of recognizing fruit and vegetables and distinguishing the different products. The scale uses an integrated camera to identify the product and prints out an adhesive tag containing the price and other information that the customer sticks on the plastic bag.
Electronic shelf labels will make conventional price labels a thing of the past in the Future Store. The goods are placed on shelves equipped with electronic shelf labels. On a small display, the customer sees the base and product prices. Next to the display is a paper label showing product name.
The system sends information on price changes directly to the displays (and check-out systems as well) via a wireless local data network. The check- out systems are also provided with data from this source.
Smart shelves in the Future Store are equipped with RFID reading devices on the bottom and linked to the merchandise management system. They recognize when goods are misplaced or missing. When it happens, they send a message to the system. When the employees receive them, they can rearrange or refill the goods.
3.2.4.3 Check-Out
The customers have new options for paying their shopping fast by scanning the products using the Personal Shopping Assistant or using the self-check- out allowing customers to act as cashiers. They draw their articles with a scanner with RFID reader. They may pay as usual, either cash or with credit card. Those who do not wish to take advantage of new technologies can take advantage of paying in cash at the check-out.
88 RFID in the Supply Chain: A Guide to Selection and Implementation