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RFID at Metro Group

How RFID will improve Metro Group retail supply chain performance
12/24/12 Garuda Team Click Winadi Fredy Jingga Kartika Martina Albert to edit Master subtitle style Ruru

Situation Overview

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About Metro AG

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Germanys biggest retailer


56.4 billion sales in 2006 2,300 locations in 30 countries 250,000 employees 6 independent Retail Formats

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About RFID

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Radio-Frequency Identification Identification and tracking using radio waves.

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Why RFID?

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RFID Benefits in Retail Supply Chain

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Process Flow

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Current Process
Manufacturer

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What Can RFID Improve


Manufacturer

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Improved Process
Manufacturer

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Current Process
Receiving and Storing Pallets on DC

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What Can RFID Improve


Receiving and Storing Pallets on DC

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Improved Process
Receiving and Storing Pallets on DC

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Current Process
Picking and Shipping Pallets to Store

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What Can RFID Improve


Picking and Shipping Pallets to Store

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Improved Process
Picking and Shipping Pallets to Store

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Pallet vs Case

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An average pallet arriving at an Extra store : 70 cases


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Financial Benefit Tagging


Specific Change

Pallet

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-cent/Pallet 20 5 25 Total benefit50

Manufacturer Truck loading at manufacturer Auto scanning at warehouse Process Change

Retailer

Auto scanning in receiving and storing pallets Auto scanning in order assembly Truck loading for shipments

11.2 2.8 1.7

Total benefit15.7

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Financial Benefit Tagging


Specific Change

Case

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-cent/Case

Manufacturer Increase profit from better on-shelf status 7 Total benefit7 Retailer Eliminate case counting in receiving goods Labor reduction in picking mixed pallets 0.3 1.7

Eliminate sample checks of mixed pallets 0.3 Reduce inventory counts Reduce mispicked cases 0.1 1.5

Increase profit from better on-shelf status 5 Total benefit8.9

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Cost Saving
COST SOURCE

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Tag Printer Tag Portal - Reader


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Growth on Sales
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(in 1,000

Savings
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(in 1,000

Cash Flow
Cash Flow - Case
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(in 1,000

ROI - IRR

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10 9 8 7 6 5 4 3 2 1 0

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NPV

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Q&A Session

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