Rfid at the Metro Group Essay
Mierdorf and Wolfram are preparing their report to the RFID steering committee next month and they have three options to recommend. They can: * Expand the scope of the current pallet level RFID rollout * Move to case level RFID tagging with the manufacturers currently engaged in pallet level rollout * Stop the expansion of the RFID and focus on traditional process improvement opportunities
Given the facts in the case and as outlined in more detail in this case study, it is our recommendation that Mierdorf and Wolfram move to the case level RFID tagging process. The improvements up and down the supply chain in accuracy, inventory control, reduced labor costs are enough to at least continue with the RFID …show more content…
At the pallet level the RFID tagging would make the shipment from the manufacturer more accurate and efficient. With RFID, all pallets could be scanned while being loaded onto the truck. The need for manually scanning the pallets was eliminated and now the truck driver can monitor the pallets being loaded on his truck. Furthermore, the forklift drivers would no longer need to preassemble the pallets and store them in the shipping area in advance of the delivery trucks’ arrival. This greatly reduces the need for supervision over the forklift driver. Metro estimated a cost savings to the manufacturer of approximately €0.20 per pallet shipped.
Benefits of RFID at the Case Level
At the case level there were two significant areas of improvement. One had to do with the mixed pallet picking at the Metro DC and the other was improving the shelf restocking at the stores. At the Metro DC, pickers were used to reassemble a mixed pallet. The pickers used a hand held scanner to track what cases were picked for the pallet. Metro estimated that the picking errors amounted to .05% of the cases that were picked. Using RFID tagging, the process would be automated by the forklift drivers. The RFID could alert the picker if they had too many or too few of the proper cases or if they had picked the wrong case altogether. With these controls in place, the need for