Antonia Voerste, Head of Communications & Public Affairs, MGI METRO Group Information Technology

METRO Group is one of the pioneers in the introduction of RFID in the retailing sector. How do you use the technology?

We already use the technology for our logistics and inventory management on an everyday basis at more than 180 locations in Germany. The aim is to speed up the processing of incoming and outgoing goods. For this purpose, numerous suppliers are tagging cartons and pallets being shipped to us with smart chips. At the incoming goods portal in our stores and warehouses, pallets are automatically compared with orders. There are no costly manual checks. This all saves time and money.

Do your customers benefit from this as well?

Yes, of course. RFID ensures transparency in logistics, because the inventories in our databases are always up to date. Our staff notice when a product is running out and can then reorder it in good time. The advantage for our customers is that they are rarely confronted by empty shelves. In our real,- Future Store, opened in Tönisvorst near Krefeld at the end of May, we use RFID to check stocks of meat items from our own production and also their sell-by dates. We are also engaged in further pilot projects involving the testing of innovative applications with the aim of improving service in stores.

What kind of applications are these?

As part of a pilot project which involves our sales brand Galeria Kaufhof in Essen, we are testing Smart Dressing Rooms with integrated RFID readers. When a customer enters the dressing room with an item of clothing to which a smart chip is attached, he or she will find additional information about the product on a monitor – for instance, the price, the type of fabric, tips for washing or cleaning, and even suggestions for combining it with other items of clothing.

Are there any obstacles to the full-scale introduction of RFID?

On the one hand, we need to put unified standards in place for the use of RFID – in different sectors and in different countries. Only then will it be possible to utilize the potential of this key technology to the full. At METRO Group we use only the EPCglobal Class 1/Gen. 2 standard for our RFID processes. On the other hand, it is important to keep consumers even more closely informed about the functions and benefits of the technology in order to ensure greater acceptance. Our transparent information policy helps us achieve this.

Data protection: how does METRO Group approach this issue?

It goes without saying that the use of this technology complies fully with both the German and European regulations governing the protection of personal data. As a member of the international standardization organization EPCglobal, METRO Group additionally observes a range of guidelines which even go beyond these legal provisions. Our goal is to safeguard our customers' privacy. For example, we keep them informed about where and why RFID is being used. We also provide them with the capability of rendering RFID transponders on products permanently unusable once the purchase has been completed.

So far you have only referred to Germany. Are there plans for the use of RFID internationally?

Yes, we do have plans. Our next goal is to introduce RFID portals for incoming and outgoing goods in Metro Cash & Carry's wholesale stores in France. The Advanced Logistics Asia (ALA) pilot project has been under way since 2006 in Vietnam and China, where roughly 100 producers are fitting their cartons and pallets with RFID transponders. The result: we are able to track the movement of products from Asia to Europe with much greater accuracy.

Organisation

METRO Group is one of the world’s most important international retailing companies. In 2007, it generated around 64 billion euros in turnover. The group maintains operations in 31 countries at more than 2,200 locations and employs around 280,000 people. The strength of METRO Group is based on its sales brands, which operate independently within their respective markets: Metro/Makro Cash & Carry, the worldwide market leaders in self-service wholesale; real,- hypermarkets; Media Markt and Saturn, the  European market leaders in consumer electronics; as well as Galeria Kaufhof department stores.

MGI METRO Group Information Technology is the METRO Group's service provider for information systems, supplying the member companies of the retailing group with a common infrastructure for communication and data transfer.