HONG KONG, Nov. 9 /Xinhua-PRNewswire/ -- Checkpoint Systems, Inc. (NYSE: CKP), a leading supplier of technology solutions for retail security, today announced its participation in the upcoming expansion of METRO Group’s "Tag It Easy!" pilot program. The second phase of the pilot will enable additional 70 consumer goods suppliers in China and Vietnam to apply RFID labels on shipments to METRO Group’s facilities in Germany. The company held a kick-off event for suppliers today in Hong Kong.
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"Tag It Easy!" is part of METRO Group’s Advanced Logistics Asia (ALA) initiative to jointly enhance logistics processes with its Asian suppliers using Radio Frequency Identification (RFID) to track merchandise throughout the supply chain. Because many suppliers in the region have limited technology capabilities, METRO Group developed the "Tag It Easy!" pilot to assist them with utilizing RFID within their operations. Through its partnership with Checkpoint Systems, METRO Group is able to provide pre-printed RFID labels to suppliers in the region so that they can initiate the tracking process with only a minimal technology investment.
"Our Tag It Easy! RFID solution is a breakthrough, showing how integrated RFID solutions benefit both suppliers and retailer" says Dr. Gerd Wolfram, Managing Director of MGI METRO Group Information Technology.
For the pilot, METRO Group selected established suppliers that had worked closely with the company in the past. Suppliers were chosen based on their geographic location and the type of products they manufactured, in order to ensure a diverse product mix.
The RFID labels provided by Checkpoint store the Serial Shipping Container Code (SSCC), which is read at several points along the supply chain between Hong Kong and Unna, Germany. METRO Group receives an electronic advance shipping notice detailing the contents of each shipment, and the suppliers receive automatic proof-of-delivery notifications. Suppliers order the RFID labels through the company’s global supplier portal Metro Link.
By using RFID to provide real-time visibility, METRO Group is able to eliminate manual counting and checking of export packages. With a more efficient supply chain, the company can reduce out-of-stock situations at the retail store, which improves the customer shopping experience. Suppliers benefit through enhanced proof-of-delivery information and more accurate shipping data, and are also able to position themselves as reliable business partners in the highly competitive consumer goods market.
METRO Group has standardized on UHF EPC Gen 2 tags for this project, and so far has reported read rates well meeting METRO Group’AAAApectation in the early stages of the pilot.
The first phase of the project, which was launched in May, included 30 Chinese suppliers. Phase 2 will be launched in early November, with the first tagged shipmentAAAApected in December. METRO Group will conduct a three-month evaluation to explore other opportunities for improvement.
"METRO Group continues to be a leader in the adoption of RFID technology in the supply chain," said George Off, CEO and chairman of the board of Checkpoint Systems. "The success of the ‘Tag It Easy!’ program, and this current expansion, are a testament both to METRO Group’s commitment to the technology, and to the effectiveness of RFID for enhancing supply chain visibility and improving customer service. We look forward to partnering with METRO Group as their RFID initiatives continue to evolve to other areas of their supply chain."
About The METRO Group
METRO Group is one of the most important international retailing companies. In 2006 the group reached sales of about � 60 billion. The company has a headcount of some 270,000 employees and operates about 2,400 outlets in 30 countries. The operating business is performed by the sales brands which operate independently in the market: Metro/Makro Cash & Carry -- world market leader in cash & carry wholesale, Real hypermarkets and Extra supermarkets, Media Markt and Saturn -- market leader in consumer electronics centers in Europe, and Galeria Kaufhof department stores. More information at: http://www.metrogroup.de .
About Checkpoint Systems Inc.
Checkpoint Systems, Inc. is the leading supplier of retail shrink management solutions. Checkpoint’s global team helps retailers -- and their suppliers -- reduce theft, increase inventory visibility and provide consumers with greater merchandise availability through the company’s rapidly evolving RF technology, expanding shrink management offerings and Check-Net labeling solutions. Checkpoint has more than one million RF devices installed in stores today and has secured more than 100 billion products. Scaling cost efficiently, Checkpoint’s solutions provide increased revenues and profits to a fast-growing community of successful retailers and a superior experience for their consumers. Listed on the NYSE (NYSE: CKP), Checkpoint operates in every geographic market and employs 3,200 people worldwide. For more information, visit http://www.checkpointasiapac.com .
Checkpoint Systems, Inc.
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