Europe's Largest RFID Rollout

Published Fri, 2008-01-11 18:52 RFID

IBM (NYSE: IBM) worked with METRO Group to implement Radio Frequency Identification (RFID) technology to improve the availability of products in its stores. The companies are successfully using RFID in a system which tracks shipments from suppliers to warehouses, distribution centers and stores. The companies are also teaming on an innovative customer focused RFID project in one of METRO Group's Galeria Kaufhof department stores.

IBM and METRO Group recently completed the rollout of Europe's largest RFID project. The system allows METRO Group to track shipments from suppliers to its warehouses and distribution centers to around 200 supermarkets and stores across Germany. It has enabled METRO Group to improve product availability and ensure that customers' expectations are met.

Pallets of goods destined for a METRO Cash & Carry or Real store contain an RFID tag when they leave the supplier or the group's distribution centers. The tags are scanned by RFID readers on delivery at a store location. The data captured by the readers is provided in real-time to METRO's merchandise information systems using the IBM WebSphere Premises Server, software which aggregates and analyzes RFID information.

Galeria Kaufhof, a division of METRO Group, has teamed with IBM to develop and install a first of a kind system to enhance customer service in one of its department stores in Essen, Germany. As part of a pilot program, approximately 30,000 articles in the men's fashion department have been equipped with ultra high frequency second generation RFID tags.

Employees are using the system to find articles that shoppers are looking for and to monitor stock to ensure that popular items are always available. The store also features devices in the store's fitting rooms which recognize the tagged garments and display customer information such as price, fabric and care instructions.

A team of experts from IBM Global Business Services designed the system's software architecture and conducted an in-depth analysis of how to best execute the project. IBM also developed Galeria Kaufhof's Store Information System, which provides real-time information on inventory based on readouts of RFID tags. The system puts comprehensive reports on business-related performance indicators into the hands of store employees and managers.

The Galeria Kaufhof project is one of the first to use the EPCglobal architecture framework, which sets communication standards between hardware and software components while also defining data interfaces. Galeria Kaufhof can use the captured data to make better informed decisions on products it will sell in the future.

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