Rewe rolls out RFID

Leading German retailer, Rewe Group, is extending its use of Radio Frequency Identification (RFID). The company plans to deploy RFID technology it all its distribution centres for foods in Germany.

As part of the process, suppliers have been requested to make use of electronic data interchange (EDI), as well as use RFID tagging on all deliveries to Rewe's warehouses. The retail group does not aim to use RFID at case or item level. RFID at case or item level is tricky because of metal packaging reflecting the radio waves and liquids absorbing them.  Rewe expects its suppliers to label pallets with RFID chips and additionally tags its own roll cages with reusable radio labels.

Commenting on the new policy, General Manager of IT & Logistics, Erich König, said, "The suppliers benefit from our RFID roll-out. A company cross-flow of information allows a reduction in process costs and an improvement in process quality."

After the successful implementation of the technology at its distribution centre in Norderstedt, the retailer plans to roll out the technology to the sites in Wiesloch, Rosbach and Rüsseina during 2008. All other distribution centres for foods are to follow in 2009 and 2010.