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METRO Group RFID Roll-out

METRO Group RFID Roll-out. October 2005 Scott Medford, Vice President - RFID Intermec Technologies Corporation for Dr. Gerd Wolfram Managing Director MGI. RFID at METRO Group – A Success Story. January: Founding of the METRO Group Future Store Initiative

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METRO Group RFID Roll-out

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  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 2004 2000 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 L‘ORÉAL 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 Focus of theroll-out • Incoming/outgoing goods, inventory replenishment, automatic reconciliation 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 • Metro Cash & Carry • Grocery, General Merchandise • 20 Suppliers • 2 Stores • 1 DC • Galeria Kaufhof • Apparel/Textiles • 3 Suppliers • 5 DCs • 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 L‘OREALINTERUNION With availability of GEN 2 about 100 suppliers

  8. RFID Rollout  Still a long way to go METROGroup Distribution Lines 3 Supplier 26 RFID Gates 111 Pallets 218.108 Cases 79.100 Items 82.800 EPC Reads 879.979

  9. Standard rollout portal setup Reader Motion Sensor Light stack Metal protection 4 antennas

  10. DC Essen 4 Portals (e.g. Trash Door) Extra Rheinberg 1 Standalone PC RFID Controller Customer Information for Check Out and Gates Standalone PC 9 Exit Gates RFID Server (Rack) 14 Check Out Eth. Switch 2 Entry Gates to SAP SII 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) Ethernet Switch 14 Check Out 14 Check Out 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. … 19. 20. 1. 2. 3. 4. 21. 22. 23. 24. 41. 42. 43. 44. … 57.

  12. 1 4 2 3 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 Codematches data from Merchandise Manage-ment Systems

  13. 100 days of RFID – High reading accuracy in first trials • Hanger goods conveyor: 99% • Stackable goods conveyor: 99% • Returnable transport • items: > 90% • Portal for incoming and • outgoing goods: Varying results, up to 99%

  14. 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

  15. 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

  16. 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.)

  17. Speed • Efficiency • Reliability • Range • Security • Cost • Many tags and late tags • Fast singulated write • Tag select by data filter • Dense reader installation • Global unlicensed operation • Minimal interference Verified write Error correction in air interface Wide operating temperature Eliminate ghost tags Up to 5 meter range • Write protection • Tag kill • Secure forward link • Data cloaking Synchronized Timing User Requirements

  18. 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

  19. 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

  20. METRO Group – Experience the future of retailing with the third largest retailer in the world

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