Master in Business Administration

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11. RFID at the Metro Group
Question a – What are the advantages and disadvantages of using RFID technology? Answer the question with specific reference to the Metro group. Ans- RFID stands for Radio Frequency Identification Technology. The advantages of RFID are as follows- 1. The retail industry was suffering from regular theft either by employees or customers. The estimate of shrink was put at 2% and it was a great a hit on the company. Studies reveal that use of the RFID technology bring it down by 25% as per one of he studies conducted by IBM 2. This was meant to improve on shelf availability and reduce out of stocks. This could be achieved by the fact the RFID could make replenishment of stock much faster. 3. Productivity and labor efficiency is another important point. Both suppliers and retailers were expected to achieve time and money savings techniques by eliminating manual work and bar code scanning.

Disadvantages- To be frank RFID was technically superior to the erstwhile things but implementation was lacking and hence sometimes there some problems. This was borne out by the experience of Metro too. Very often the suppliers forgot to put tag or put at wrong places making it un readable for the RFID. METRO too fund t difficult at time to read the tag because of poor quality of tag.

Question B – Critically analyze the Future Store initiative at the Metro Ans- Metro launched the Future Store initiative in 2002. ne of the largest trading groups worldwide, the METRO Group was founded in Germany in the 1960s and steadily expanded throughout Europe, merging with several top retail companies. Based on its successful performance in the domestic market, the group quickly expanded into 28 countries offering product and services which meet the most stringent customer demands. The METRO Group prides itself on its guarantee that a large selection of high quality merchandise is always available – both in the food and non-food areas. Freshness is a...
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