METRO Group Completes RFID Deployment at Retailer's Largest DC in Germany

50,000 pallets said read to date, with 99 percent pallet tag read rates; company partners with Intermec on implementation

50,000 pallets said read to date, with 99 percent pallet tag read rates; company partners with Intermec on implementation

Everett, WA — January 25, 2005 — Retail giant METRO Group has completed a radio frequency identification (RFID) deployment at its largest and busiest distribution center (DC) in Germany, and to date the company has seen 50,000 pallets read, with 99 percent tag read-rates, according to announcement from Intermec Technologies, a technology provider involved in the project.

The world's third-largest retailer and an RFID pioneer, METRO is working with Intermec on the implementation at the DC, located in Unna, Germany. The distribution center is equipped with Intermec IF5 Intelligent RFID readers and RFID tags using Intermec technology. In addition to achieving the high read rates, the technology also is in compliance with European Telecommunications Standardization Institute (ETSI) radio standards for operation in Europe, Intermec said.

"Intermec understands RFID and has been an integral partner in our full-scale RFID rollout," said Dr. Gerd Wolfram, executive project manager of the METRO Group Future Store Initiative. "With the strong read rates and system performance we've seen from our Intermec hardware, METRO Group is proving the efficiency and accuracy that RFID promises for retailers."

Intermec said that its partnership with METRO builds on the provider's RFID system participation in the METRO Group Future Store Initiative, METRO's Innovation Center and the full-scale METRO RFID rollout that began in November 2004.

"METRO Group's commitment to RFID demonstrates how emerging technologies can benefit retailing operations from inventory to point of sale," said Intermec President Tom Miller.

Areas of profitability improvement from supply chain RFID include reduced shrink and loss of inventory, reduced out-of-stock conditions at store level, more efficient transportation and logistics, reduced inventory and lower labor costs associated with receiving, Intermec said.

METRO Group operates in 30 different countries around the world, with nearly 2,500 locations and more than 240,000 employees.

For a contrary view of the future of the RFID market, see the article "The O'RFID Factor: A 'No Spin' Look at Where Radio Frequency Identification Is Headed," in the October/November 2004 issue of Supply & Demand Chain Executive.

For more information on trends relating to radio frequency identification, follow this link for an extensive listing of articles, featuring the latest research findings on the RFID, including adoption, return on investment and barriers to implementation.