Description
For Nmims Assignments Contact
[email protected]
+91 95030-94040
Global Retailing
1. What is your opinion on the path IKEA has chosen to on its entry in the Indian market? (10 Marks)
2. Vicco laboratories manufacturers of the toothpaste brand Vicco Vajradanti is planning to enter the international market expanding its presence in more than 40 countries? What should be their strategy? (10 Marks)
3. Case Study
Metro AG is located in Dusseldorf, Germany. It was established in 1996 by the merger of the country’s three retail companies. The group has presence in Europe, Africa and Asia. It has four sales divisions and seven retail brands, viz., cash and carry stores (MET-RO, Marko), food retailing stores (Real, Marko), food retailing stores (Real, Extra), non-food specialty stores and tage (Media Markt, Saturn) and departmental stores (Galeria Kaufhof). It roughly employs 3 lac people. Individual customers and wholesalers are its primary customers. It has successfully applied RFID in its retail business and supply chain.
At present, Metro is using RFID an all its stores. However the method was not implemented overnight; it had been deployed through a series of trials. Let us look back at course of RFID implementation as it exists today in Metro.
In 2003, Metro started the use of RFID and field trials for the same at selected stores. Motivation behind it was to achieve high efficiency in its supply chain operations, optimize inventory, minimize stock-outs and achieve fully automated replenishments systems and item-level tagging. After the success of field trials, RFID was implemented through the whole of Metros supply chain in November 2004.
Now, most of its suppliers ship pallets ( a unit on which goods or containers to be shipped are placed) tagged with RFID labels. There are RFID gates deployed at the entry and exit points of every Metro distribution centre. In order to fully automate the supply chain the group decided to put some kind of penalty on suppliers who do not use RFID labels. Almost all pallets should be tagged with RFID UHF (Ultra High Frequency) transponders. These contain data such as serial shipping container codes, store number etc. A code called Electronic Product Code (EPC), which can identify every single item, is stored in the RFID tag. Metros supply chain process with the use of RFID comprises the following steps:
1. The supplier sends an electronic dispatch note to a Metro distribution centre where goods are to be received and tags pallets with RFID that are read through RFID exit gates.
2. At the distribution centre, pallets with RFID tags are read through RFID entry gates and then are stored in the warehouse. When a requirement is received from a Metro store, the pallets are sent to the store and, at the time of exit, are again read through the RFID exit gate.
3. The store receives the pallets; they are read through the RFID gate and are then stored in stock rooms.
To support RFID, Metro has used a variety of Hardware and software support such as RFID readers, RFID applications and software components. The group also updated its merchandise management systems (MMS) and warehouse management systems (WMS) to make provisions for RFID.
In January 2005, RFID implementation was accomplished all through. In 2006, Metro moved to EPC global Gen2 tags and new reader designs. By using these tags, carton-level tagging was possible; however, item tagging was not available.
In September 2007, Metro started item level tagging trails at Galeria Kaufhof, Essen, which stocked about 30,000 items (clothes) any time, RFID gates could sense motion and automatically activate readers. They are present at the transition points. The use of readers enabled the staff to locate items and their availability. Smart shelves were introduced that could identify clothes via RFID and provide information related to price, size etc. In addition, smart mirrors and smart dressing rooms were introduced; they also provided details of clothes through RFID tags.
The group reported the following benefits after RFID implementation:
Inventory optimization\
As against the natural barcode, RFID reduced idle time and accelerated good receipt.
Lesser shelving errors.
Improved and smoother flow of process.
Lesser events of theft and shrinkage.
Approximately 10-20% reduction in stock-outs, thus increasing sales performance.
Cost reduction for suppliers using RFID.
Cost saving by the use of electronic dispatch notes.
Track and trace feature for store items.
1. Why did Metro AG feel the need to introduce RFID into its supply chain? (5 Marks)
2. What were the steps and components of information technology that were used by the group to achieve the successful implementation of RFID? (5 Marks)
For Nmims Assignments Contact
[email protected]
+91 95030-94040
doc_496294876.docx
For Nmims Assignments Contact
[email protected]
+91 95030-94040
Global Retailing
1. What is your opinion on the path IKEA has chosen to on its entry in the Indian market? (10 Marks)
2. Vicco laboratories manufacturers of the toothpaste brand Vicco Vajradanti is planning to enter the international market expanding its presence in more than 40 countries? What should be their strategy? (10 Marks)
3. Case Study
Metro AG is located in Dusseldorf, Germany. It was established in 1996 by the merger of the country’s three retail companies. The group has presence in Europe, Africa and Asia. It has four sales divisions and seven retail brands, viz., cash and carry stores (MET-RO, Marko), food retailing stores (Real, Marko), food retailing stores (Real, Extra), non-food specialty stores and tage (Media Markt, Saturn) and departmental stores (Galeria Kaufhof). It roughly employs 3 lac people. Individual customers and wholesalers are its primary customers. It has successfully applied RFID in its retail business and supply chain.
At present, Metro is using RFID an all its stores. However the method was not implemented overnight; it had been deployed through a series of trials. Let us look back at course of RFID implementation as it exists today in Metro.
In 2003, Metro started the use of RFID and field trials for the same at selected stores. Motivation behind it was to achieve high efficiency in its supply chain operations, optimize inventory, minimize stock-outs and achieve fully automated replenishments systems and item-level tagging. After the success of field trials, RFID was implemented through the whole of Metros supply chain in November 2004.
Now, most of its suppliers ship pallets ( a unit on which goods or containers to be shipped are placed) tagged with RFID labels. There are RFID gates deployed at the entry and exit points of every Metro distribution centre. In order to fully automate the supply chain the group decided to put some kind of penalty on suppliers who do not use RFID labels. Almost all pallets should be tagged with RFID UHF (Ultra High Frequency) transponders. These contain data such as serial shipping container codes, store number etc. A code called Electronic Product Code (EPC), which can identify every single item, is stored in the RFID tag. Metros supply chain process with the use of RFID comprises the following steps:
1. The supplier sends an electronic dispatch note to a Metro distribution centre where goods are to be received and tags pallets with RFID that are read through RFID exit gates.
2. At the distribution centre, pallets with RFID tags are read through RFID entry gates and then are stored in the warehouse. When a requirement is received from a Metro store, the pallets are sent to the store and, at the time of exit, are again read through the RFID exit gate.
3. The store receives the pallets; they are read through the RFID gate and are then stored in stock rooms.
To support RFID, Metro has used a variety of Hardware and software support such as RFID readers, RFID applications and software components. The group also updated its merchandise management systems (MMS) and warehouse management systems (WMS) to make provisions for RFID.
In January 2005, RFID implementation was accomplished all through. In 2006, Metro moved to EPC global Gen2 tags and new reader designs. By using these tags, carton-level tagging was possible; however, item tagging was not available.
In September 2007, Metro started item level tagging trails at Galeria Kaufhof, Essen, which stocked about 30,000 items (clothes) any time, RFID gates could sense motion and automatically activate readers. They are present at the transition points. The use of readers enabled the staff to locate items and their availability. Smart shelves were introduced that could identify clothes via RFID and provide information related to price, size etc. In addition, smart mirrors and smart dressing rooms were introduced; they also provided details of clothes through RFID tags.
The group reported the following benefits after RFID implementation:
Inventory optimization\
As against the natural barcode, RFID reduced idle time and accelerated good receipt.
Lesser shelving errors.
Improved and smoother flow of process.
Lesser events of theft and shrinkage.
Approximately 10-20% reduction in stock-outs, thus increasing sales performance.
Cost reduction for suppliers using RFID.
Cost saving by the use of electronic dispatch notes.
Track and trace feature for store items.
1. Why did Metro AG feel the need to introduce RFID into its supply chain? (5 Marks)
2. What were the steps and components of information technology that were used by the group to achieve the successful implementation of RFID? (5 Marks)
For Nmims Assignments Contact
[email protected]
+91 95030-94040
doc_496294876.docx