Bob Trebilcock

METRO Group rolls out new RFID pilot program
June 10, 2008

Here’s a quick question: Can you name the global retailer leading the way on RFID? And no fair peeking at the headline.

If you guessed Wal-Mart you’d be close, but no cigar. That isn’t meant to take anything away from Wal-Mart. They got the ball rolling on RFID and continue to move forward with their plans to tag cartons and pallets going into Wal-Mart (and Sam’s Club) DCs.

But for my money, the real innovator has been METRO Group, the German retail giant (www.metrogroup.de). Like Wal-Mart, METRO is tagging cartons and pallets. But METRO has also been piloting RFID in a variety of applications inside its Future Stores. Last year, METRO began tagging men’s suits and accessories, with the idea of eventually being able to make fashion suggestions to fashion-challenged consumers like me. Pick out a blue suit, and the solution might suggest a selection of shirts and ties that match up well with that outfit.   

Last week, I spoke Maggie Bidlingmaier, senior manager of global compliance for Avery Dennison, about a project they’re doing with METRO, providing tags for a meat tracking pilot program at METRO’s real, Future Store in Toenisvorst, Germany.

Now, METRO isn’t actually adding an RFID tag to a rib eye steak or a package of chicken breasts. Instead, the tags are applied to the foam meat packing trays used to store perishable product. The tags can be read even when meat is stacked inside a freezer. The idea is that METRO can better manage the flow of perishable products, making sure that meat is sold while it’s still fresh – which means the consumer gets a better product and METRO will do less discounting.

Now, I have no idea whether METRO plans to use RFID information to suggest food pairings (“You’re getting the chicken breast. Wouldn’t you like some broccoli and rice to go with that?”) the way they’re talking about pairing a tie with a suit. But what has struck me about METRO’s pilot programs is the combination of technology and imagination. They have consistently looked for ways to apply RFID technology to improve business processes (keeping track of men’s suits and efficiently managing the flow of meat from the freezer to the meat department) and the consumer experience (pairing clothing or insuring the freshness of food).  

At the end of the day, that richness of data and experience is what RFID in the supply chain is supposed to be about. Otherwise, why not just use a bar code?

Posted by Bob Trebilcock on June 10, 2008 | Comments (0)