The third phase of the program, which is just beginning, will cover 75 Asian consumer goods suppliers. They will join 100 manufacturers from Hong Kong, China, and Vietnam who have already participated in previous phases of the project. “Tag It Easy” is a program that is part of the ALA (Advanced Logistics Asia) initiative launched by METRO Group in 2006. Its goal is to improve the logistics process for the group’s Asian suppliers by implementing RFID (Radio Frequency Identification) technology. The idea for the program was created in close cooperation with Checkpoint Systems, a strategic partner of METRO Group in the Future Store Initiative, through which the group’s contractors are offered substantive and technical support in the use of RFID technology. In the “Tag It Easy” program, Checkpoint Systems is the sole provider of RFID labels and related handling solutions. Suppliers order labels via the global Metro Link portal, which serves as a communication channel between the group and its suppliers. The RFID labels provided by Checkpoint Systems contain information about the Serial Shipping Container Code (SSCC), which is read at several points in the supply chain between the supplier’s country and Germany. During this time, METRO Group receives relevant notifications along with an accurate list of the cargo contents (EDI), while suppliers receive confirmation of receipt of the shipped cargo once it reaches the distribution center in Germany.
– Since the start of the program, we have observed a fundamental improvement in the speed of handling shipments delivered to warehouses and stores – says Dr. Gerd Wolfram, Chief Information Officer of METRO Group. – We are also very satisfied with the read rates of information from smart labels containing the Electronic Product Code. Now that manual counting of goods is not necessary, shipments are delivered to individual stores much faster.
The use of RFID technology improves the flow of information throughout the METRO Group supply chain, thereby optimizing logistics processes. It enables the tracking of goods and instant verification of the contents of transported cargo, ultimately contributing to increased consumer shopping comfort by almost completely eliminating out-of-stock situations on store shelves. Suppliers, in turn, reduce their costs and save time previously lost on manually counting and checking shipment contents. Another benefit is secure shipping and receipt confirmations, as well as precise data regarding the transport of goods. Thanks to RFID, they also become much more reliable partners for other clients, which is very important in the highly competitive consumer goods market. METRO Group has set the ultimate goal of increasing both the effectiveness and efficiency of supply chain management. To achieve this, the company must maximize the transparency of the flow of goods and information throughout the entire supply chain. This project provides the opportunity to achieve that.
– I am impressed by how METRO Group maintains its position as a market leader in the use of RFID technology in the global supply chain – comments Rob van der Merwe, President and CEO of Checkpoint Systems. – The success of the “Tag It Easy” program in many countries demonstrates the high effectiveness and benefits of its large-scale application.
METRO Group management expresses its satisfaction with the introduction of solutions that allow for the monitoring of cargo status at every stage of the logistics process. The “Tag It Easy” project creates an infrastructure that enables the monitoring of an increasing number of increasingly diverse products, which is the basis for supply chain optimization.
– Our partnership with Checkpoint Systems is crucial from the point of view of implementing RFID into the supply chain. The local support and training that Checkpoint provides to our Asian suppliers, combined with the global Check-Net service, which offers the ability to order security label printing and delivery to the manufacturer, allow for significantly accelerating the introduction of new technologies into the logistics process in the East Asia region – points out Dr. Gerd Wolfram. – In this situation, Asian suppliers do not have to worry about technology or large investment outlays. Moreover, the application of international standards, such as labels in the EPC global Gen 2 system, builds a foundation for the cost-effective introduction of RFID technology on a global scale – he concludes.