Wolfram Metro Future Store - rfidjournal.net©METRO AG 2004, Dr. Gerd Wolfram Electronic Shelf...
Transcript of Wolfram Metro Future Store - rfidjournal.net©METRO AG 2004, Dr. Gerd Wolfram Electronic Shelf...
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The Executive Conference Produced by RFID Journal • March 29 to 31, 2004 • Hilton Chicago
From Promise to Reality
Executive Conference
Hilton ChicagoMarch 29 to 31, 2004
The Executive Conference Produced by RFID Journal • March 29 to 31, 2004 • Hilton Chicago
From Promise to Reality© METRO AG 2004, Dr. Gerd Wolfram
The METRO Group Future Store Initiative
Dr. Gerd WolframDirector of IT Strategy,IT Buying and Development Services,Metro MGI Information Technology
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The Executive Conference Produced by RFID Journal • March 29 to 31, 2004 • Hilton Chicago
From Promise to Reality© METRO AG 2004, Dr. Gerd Wolfram
Contents
1 The METRO Group Future Store Initiative
2 The Extra Future Store in Rheinberg
3 Results of the Boston Consulting Panel
4 Next Steps
The Executive Conference Produced by RFID Journal • March 29 to 31, 2004 • Hilton Chicago
From Promise to Reality© METRO AG 2004, Dr. Gerd Wolfram
METRO Group – One of the World‘sLargest Retail Groups
Management Holding
METRO AG
Cross-divisional Service Companies
Cash & Carry Food Retailing Nonfood Consumer Outlets Department Stores
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The Executive Conference Produced by RFID Journal • March 29 to 31, 2004 • Hilton Chicago
From Promise to Reality© METRO AG 2004, Dr. Gerd Wolfram
METRO Group – 2.340 Locations in28 Countries
AustriaC & C 12Media/Sat. 22Praktiker 5Sonstige 3
BelgiumC & C 7Kaufhof 15Media 2
BulgariaC & C 7
CroatiaC & C 2
Czech Rep.C & C 10
DenmarkC & C 4
FranceC & C 78Media/Sat. 18
GermanyC & C 112Real 253Extra 476Media/Sat. 258 Praktiker 288Kaufhof 133Others 215
GreeceC & C 6 Praktiker 7
HungaryC & C 12Media/Sat. 10Praktiker 14
ItalyC & C 39Media/Sat. 47
JapanC&C 2
LuxembourgPraktiker 3
MoroccoC & C 6
NetherlandsC & C 15Media/Sat. 11
PolandC & C 20Real 25Media/Sat. 17 Praktiker 16
PortugalC & C 10
As of September 30, 2003
PR ChinaC & C 18
RomaniaC & C 15Praktiker 1
RussiaC & C 6
SlovakiaC & C 5
SpainC & C 26Media/Sat. 16
SwitzerlandMedia/Sat. 14
TurkeyC & C 9Real 7 Praktiker 7
UKC & C 31
UkraineC & C 1
VietnamC & C 3
The Executive Conference Produced by RFID Journal • March 29 to 31, 2004 • Hilton Chicago
From Promise to Reality© METRO AG 2004, Dr. Gerd Wolfram
METRO Group Future Store Initiative –Jointly Elaborating Visions
Cooperation of METRO Group with SAP, Intel, IBM and othersPlatform for technical and process-relateddevelopments and innovations
Efficient retailing through implementationof future technologiesDeveloping visions on technologiesBenefiting customers, retailer, supplier
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The Executive Conference Produced by RFID Journal • March 29 to 31, 2004 • Hilton Chicago
From Promise to Reality© METRO AG 2004, Dr. Gerd Wolfram
Partner Companies – Strong Alliance
METRO GROUP SAP INTEL IBM
CISCO SYSTEMS COCA COLA DHL SOLUTIONS GILLETTE HENKEL HEWLETT PACKARD JOHNSON & JOHNSON KRAFT FOODSMICROSOFT NESTLÉ ORACLE PHILIPS PIRONET NDHPROCTER & GAMBLE SYMBOL VISA WINCOR NIXDORF
ALGOTEC ALPHA TONTRÄGER AVERY DENNISON BIZERBA BOSTON CONSULTING GROUP CHECKPOINT SYSTEMS CHEPCITTADINO EYCKELER&MALT FEIG ELECTRONIC FUJITSU SIEMENS COMPUTERS HINTZPETER & PARTNER INTERMEC KURT SALMON ASSOCIATES LIEBHERR LOYALTY PARTNER METTLER TOLEDO MULTIQ NCR OATSYSTEMS ONLINE SOFTWARE SONOPRESS WANZL METALLWARENFABRIK WMS
The Executive Conference Produced by RFID Journal • March 29 to 31, 2004 • Hilton Chicago
From Promise to Reality© METRO AG 2004, Dr. Gerd Wolfram
Contents
1 The METRO Group Future Store Initiative
2 The Extra Future Store in Rheinberg
3 Results of the Boston Consulting Panel
4 Next Steps
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The Executive Conference Produced by RFID Journal • March 29 to 31, 2004 • Hilton Chicago
From Promise to Reality© METRO AG 2004, Dr. Gerd Wolfram
The Extra Future Store –Testlab of the Initiative
• Extra Future Store in Rheinberg• Central building block of the METRO Group
Future Store Initiative– First Project– Application and combination of a wide range
of technologies in retailing– Test under real-world conditions– Testing acceptance of customers– World-unique experiment
The Executive Conference Produced by RFID Journal • March 29 to 31, 2004 • Hilton Chicago
From Promise to Reality© METRO AG 2004, Dr. Gerd Wolfram
Innovative Technologies in the JointTesting Laboratory
InfrastructureWLAN ServerContent Bus
ComfortShopping
In-Store Information
SmartCheck-out
RFID InventoryManagement
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The Executive Conference Produced by RFID Journal • March 29 to 31, 2004 • Hilton Chicago
From Promise to Reality© METRO AG 2004, Dr. Gerd Wolfram
Comfort Shopping: Convenient and Easy
Intelli-gentScale
InfoTermi-
nal
Pers.Shopping Assistant
Electr.Price
Labels
Electr.Advert.Display
InfrastructureWLAN ServerContent Bus
ComfortShopping
In-Store Information
SmartCheck-out
RFID InventoryManagement
The Executive Conference Produced by RFID Journal • March 29 to 31, 2004 • Hilton Chicago
From Promise to Reality© METRO AG 2004, Dr. Gerd Wolfram
Advice and Service Made to Measure –the Personal Shopping Assistant (PSA)
Handy computer device on the shopping trolleyPersonalized customer loyalty card (“Extra Future Card”)
Personalization of shoppingDisplay of promotion campaigns and special offersFaster orientation in the store –“navigation system”Access to product information
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The Executive Conference Produced by RFID Journal • March 29 to 31, 2004 • Hilton Chicago
From Promise to Reality© METRO AG 2004, Dr. Gerd Wolfram
Info Terminals fill Customers in
Screens show interesting information on the corresponding product
Scanning of productsDisplay of detailed informationAdditional functions, e. g. recipes, with printout
The Executive Conference Produced by RFID Journal • March 29 to 31, 2004 • Hilton Chicago
From Promise to Reality© METRO AG 2004, Dr. Gerd Wolfram
Comfort Shopping with Intelligent Scales
Intelligent fruit and vegetables scale facilitates the weighing process
Automatic recognition of fruit and vegetablesWeighing the productsPrinting out the bar-code label
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The Executive Conference Produced by RFID Journal • March 29 to 31, 2004 • Hilton Chicago
From Promise to Reality© METRO AG 2004, Dr. Gerd Wolfram
In-Store Promotion throughElectronic Advertising Displays
Electronic displays directly point to current offers and promotions
Highlighting special offers and promotionsShowing short video sequences
The Executive Conference Produced by RFID Journal • March 29 to 31, 2004 • Hilton Chicago
From Promise to Reality© METRO AG 2004, Dr. Gerd Wolfram
Electronic Shelf Labels –Always the Right Price
Shelves are equipped with electronic price labels and continuously supplied with updated information
Direct networking with the check-out system; differing price indications are thus avoidedCentral control via radio signals
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The Executive Conference Produced by RFID Journal • March 29 to 31, 2004 • Hilton Chicago
From Promise to Reality© METRO AG 2004, Dr. Gerd Wolfram
In-Store Information: EnhancingEmployees‘ Productivity
Mobile Assistant
InfrastructureWLAN ServerContent Bus
ComfortShopping
In-Store Information
SmartCheck-out
RFID InventoryManagement
The Executive Conference Produced by RFID Journal • March 29 to 31, 2004 • Hilton Chicago
From Promise to Reality© METRO AG 2004, Dr. Gerd Wolfram
Personal Digital Assistant (PDA) –Mobility for Employees
Optimum transparency regarding backstore and frontstore inventories
Barcode reader with access to the warehouse management system of METRO AGMail functionMobile access to e-mails, diary and contact data Linking the product with the advertising display via the PDA
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The Executive Conference Produced by RFID Journal • March 29 to 31, 2004 • Hilton Chicago
From Promise to Reality© METRO AG 2004, Dr. Gerd Wolfram
Smart Check-out: Facilitating theCheck-out Process
Self-Check-
out
PSACheck-
out
InfrastructureWLAN ServerContent Bus
ComfortShopping
In-StoreInformation
SmartCheck-out
RFID InventoryManagement
The Executive Conference Produced by RFID Journal • March 29 to 31, 2004 • Hilton Chicago
From Promise to Reality© METRO AG 2004, Dr. Gerd Wolfram
Self-Check-out: Managing Check-outby Yourself
New, fully automated check-out system accelerates the payment process
Customers manage the check-out process themselvesPayment at the machine (in cash or with a card)
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The Executive Conference Produced by RFID Journal • March 29 to 31, 2004 • Hilton Chicago
From Promise to Reality© METRO AG 2004, Dr. Gerd Wolfram
Comfort Check-out – Payment with thePersonal Shopping Assistant
Total price of the products scanned with the Personal Shopping Assistant is transmitted to the check-out system via radio signals
Customers scan products themselves while shopping in the StoreCheck-out system takes over the total priceCustomer pays, assisted by a cashier
The Executive Conference Produced by RFID Journal • March 29 to 31, 2004 • Hilton Chicago
From Promise to Reality© METRO AG 2004, Dr. Gerd Wolfram
RFID Inventory Management
SmartShelves
Logistics
InfrastructureWLAN ServerContent Bus
ComfortShopping
In-Store Information
SmartCheck-out
RFID InventoryManagement
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The Executive Conference Produced by RFID Journal • March 29 to 31, 2004 • Hilton Chicago
From Promise to Reality© METRO AG 2004, Dr. Gerd Wolfram
RFID-Technology – ImprovingSupply Chain Efficiency
Radio frequency-based product lablesprovide realtime inventory data, new levelof product information and potential fortailored marketing
Accurate inventoriesOut-of-stock warnings systemRFID-based replenishment processes forwarehouse and storePersonalized advertising
The Executive Conference Produced by RFID Journal • March 29 to 31, 2004 • Hilton Chicago
From Promise to Reality© METRO AG 2004, Dr. Gerd Wolfram
RFID in Retailing
All cardboard boxes for the store andpallets are provided with tags
An RFID gate at the ramp reads eachpallet and each box that passes by thegate
An RFID gate at the ramp reads eachpallet and each box transported intothe storage area of the supermarket;reconciliation with the order; registration in the store system
Warehouse in Essen
I
II
III
Store in Rheinberg
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The Executive Conference Produced by RFID Journal • March 29 to 31, 2004 • Hilton Chicago
From Promise to Reality© METRO AG 2004, Dr. Gerd Wolfram
Tests on Pallet and Case Level
RFID-Portals
RFID-Chipson cartons and pallets
Preparation of RFID-Chips
The Executive Conference Produced by RFID Journal • March 29 to 31, 2004 • Hilton Chicago
From Promise to Reality© METRO AG 2004, Dr. Gerd Wolfram
RFID Data Management
SAPApplication
System
Future StoreNetwork
Delivery Monitor
Writing the Tags Exit and Entrance Portal In-Store Portal
Goods Flow
I II III
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The Executive Conference Produced by RFID Journal • March 29 to 31, 2004 • Hilton Chicago
From Promise to Reality© METRO AG 2004, Dr. Gerd Wolfram
SAP Portal – Tracking and Tracing
complete tracking control
The Executive Conference Produced by RFID Journal • March 29 to 31, 2004 • Hilton Chicago
From Promise to Reality© METRO AG 2004, Dr. Gerd Wolfram
RFID in the Store
All boxes are read as soon as they aretaken to the sales room; registration of the change in storage location
Products on the shelf are equippedwith tags; a shelf reader registers thelocation on the shelf; posts removal; advises of misplaced products
RFID readers at the InformationTerminals provide the customers withadditional information on the product
I
II
III
IV Exit readers ensure theft protection
Store in Rheinberg
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The Executive Conference Produced by RFID Journal • March 29 to 31, 2004 • Hilton Chicago
From Promise to Reality© METRO AG 2004, Dr. Gerd Wolfram
The Smart Shelf – Never Empty
Reading devices in the shelves recognize the RFID label on the products and automatically register when a product is taken off the shelf or placed in the wrong space
The shelves indicate when they need to be refilledThis way, all products are always available
The Executive Conference Produced by RFID Journal • March 29 to 31, 2004 • Hilton Chicago
From Promise to Reality© METRO AG 2004, Dr. Gerd Wolfram
Smart Shelf
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The Executive Conference Produced by RFID Journal • March 29 to 31, 2004 • Hilton Chicago
From Promise to Reality© METRO AG 2004, Dr. Gerd Wolfram
RFID supports the OptimalShelf Availability Process
• RFID supports ...– measurement of Out Of Stocks,– replenishment processes– accurate inventories,– shelf refilling concepts through early warning systems.
MeasurementManage-
mentAttention
Inventory accuracy
Replenishment system
Merchandising
Promotion management
Ordering System
The Executive Conference Produced by RFID Journal • March 29 to 31, 2004 • Hilton Chicago
From Promise to Reality© METRO AG 2004, Dr. Gerd Wolfram
Projects Yield Experiences andChallenges
• Individual settings Pilots, tests, QA• Technical know-how Strong partner• Standardization EPCglobal, GCI• Acceptance for benefits Internal promotor• Acceptance at employee-level Training• Process-changes New opportunities• Privacy concerns Open communication
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The Executive Conference Produced by RFID Journal • March 29 to 31, 2004 • Hilton Chicago
From Promise to Reality© METRO AG 2004, Dr. Gerd Wolfram
RFID – Customer Information hasHigh Priority
De-Activator
RFID brochure
The Executive Conference Produced by RFID Journal • March 29 to 31, 2004 • Hilton Chicago
From Promise to Reality© METRO AG 2004, Dr. Gerd Wolfram
Contents
1 The METRO Group Future Store Initiative
2 The Extra Future Store in Rheinberg
3 Results of the Boston Consulting Panel
4 Next Steps
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The Executive Conference Produced by RFID Journal • March 29 to 31, 2004 • Hilton Chicago
From Promise to Reality© METRO AG 2004, Dr. Gerd Wolfram
As Many as 77 % have used FSIApplications Already
At least 25 % of the customers have tested all applications
Use of a single FSI application
24 %28 %
62 %
48 %
77 %
At least one-time use
Source: BCG Market Research
The Executive Conference Produced by RFID Journal • March 29 to 31, 2004 • Hilton Chicago
From Promise to Reality© METRO AG 2004, Dr. Gerd Wolfram
Results of the Boston Consulting Panel
• Customers of the Future Store in Rheinberg show great interest in FSI applications
• As many as 77 % have used FSI applications already
• 50% of the non-users are planning a future use• The benefit of the applications is evaluated
positively• Even elderly and technology-averse customers are
using the applications• The percentage of use of the different appli-
cations ranges from 24 % (PSA) to 62 % (Intelligent Scale)
Source: BCG Market Research
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The Executive Conference Produced by RFID Journal • March 29 to 31, 2004 • Hilton Chicago
From Promise to Reality© METRO AG 2004, Dr. Gerd Wolfram
Customers of the Extra Future Store in Rheinberg are More Satisfied!
DissatisfiedLess satisfied
Satisfied
Highly satisfied
Completely satisfied 15 %
19 %
60 %
4 %2 %
February 2003
22 %
30 %
42 %
1 %5 %
July 2003
The percentage of satisfied customershas increased from34 % to 52 %.
Source: BCG Market Research
The Executive Conference Produced by RFID Journal • March 29 to 31, 2004 • Hilton Chicago
From Promise to Reality© METRO AG 2004, Dr. Gerd Wolfram
Growth in Sales and Number of Customers
• Strong growth in sales compared to the previous year • Growth in sales especially driven by higher frequency
– More than 30% new customers acquired– Frequency also skimmed from important competitors
• FSI as a competitive edge– FSI technology can act as a valuable customer retention tool for
customers with an affinity for technology
• Users of FSI applications are the more valuable customers– Higher sales/customer– Higher share of wallet
Source: BCG Market Research
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The Executive Conference Produced by RFID Journal • March 29 to 31, 2004 • Hilton Chicago
From Promise to Reality© METRO AG 2004, Dr. Gerd Wolfram
Contents
1 The METRO Group Future Store Initiative
2 The Extra Future Store in Rheinberg
3 Results of the Boston Consulting Panel
4 Next Steps
The Executive Conference Produced by RFID Journal • March 29 to 31, 2004 • Hilton Chicago
From Promise to Reality© METRO AG 2004, Dr. Gerd Wolfram
Importance for the METRO Group
• The Initiative underscores the role of the Group as a pacesetterand driving-force for innovation in the retail sector.
• Benefits:– Modern technologies support the METRO Group in the systematic
optimization of its sales & marketing concepts– The Group benefits from globally unified technical standards in the
retail sector– The focus on benefit-oriented solutions is ideal for the customers of
the METRO Group and strongly supports the Group's collaboration withits partner companies
– The METRO Group adopts the position of a key protangonist in thedevelopment of visions and prospects for the future of the retail sector
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The Executive Conference Produced by RFID Journal • March 29 to 31, 2004 • Hilton Chicago
From Promise to Reality© METRO AG 2004, Dr. Gerd Wolfram
Successful Presentation at theNRF Retail‘s Big Show in New York
10.000 visitors at the booth of theMETRO Group Future Store InitiativeVery positive Feedback
The Executive Conference Produced by RFID Journal • March 29 to 31, 2004 • Hilton Chicago
From Promise to Reality© METRO AG 2004, Dr. Gerd Wolfram
Next Steps
• Roll-out of FSI-technologies– Self-Check-out– Intelligent Scale
• Additional test of technologies– Extra Future Store in Rheinberg– Additional Future Store
• Expansion of RFID Supply Chain Pilots– Pilot with CPG supplier– METRO Group RFID Innovation Center
• RFID Roll-out– Supplier Briefing May 14, 2004
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The Executive Conference Produced by RFID Journal • March 29 to 31, 2004 • Hilton Chicago
From Promise to Reality© METRO AG 2004, Dr. Gerd Wolfram
METRO Group RFID Innovation Center
METRO GroupRFID Innovation
Center
METRO Group will buildprofessional, world leading
RFID test lab
Test lab will be used byexisting and new RFID partners to test new
technologies before rollout
Test lab will be a commonplatform for compliance
and standards tests
The lab will provide an open project environment:
All sales lines of theMETRO Group are invitedto participate in testing
activities
The Executive Conference Produced by RFID Journal • March 29 to 31, 2004 • Hilton Chicago
From Promise to Reality© METRO AG 2004, Dr. Gerd Wolfram
• Experience the innovative technologies in the Extra Future Store in Rheinberg...
– Extra Future StoreMoerser Straße 2847495 RheinbergGermanyPhone +49 (0) 28 43 - 90 16 82Fax +49 (0) 28 43 - 90 76 87 8
• Or visit our websites!– www.future-store.org– www.metrogroup.de