Scmrfid at Metro

RFID at electron tube grouping| October 20 BUAD 6600| SCMers Meagan Frances AyersJames FranksEmelie HallJean-Hubert Trahan| Instructor: Sachin Modi| Objective/Scope The declare oneself of this article is to determine if thermionic vacuum tube Group should implement a Radio Frequency Identification (RFID) tagging system and on what aim METRO group should implement the system (i.e. pallet tagging versus upshot tagging). If METRO Group implements an RFID system, the company must besides go down how much price it will incur and how much of the costs will be deferred to its manu accompanimenturers. Recommendations Through careful analysis, it is recommended that: * METRO Group uses a case level tagging system for larger suppliers, * METRO Group uses a pallet level tagging system for little suppliers, and * The costs link up to the implementation of the technology would be faux by larger suppliers and negotiated with smaller suppliers. Analysis Cost Saving for METRO Group Cost nest egg of case level tagging to Extra stores could be significant. With an average savings of €7.12 per pallet (€0.089 per case), the benefits of case level tagging could honk from €8.3M to €13.8M per year.

(See Exhibit 2) Most of this savings can be attributed to an estimated 25% reduction in shrink related costs. Other cost benefits of case level tagging are reductions in stock outs, labor, and mis-picked cases. It should also be noted that the cost of RFID chips is given in US dollars, distorting the true cost to METRO. Currency exchange rates baffle been considered in the analysis shown in Exhibit 2. Cost savings to Extra stores of pallet level tagging are estimated to be borderline in some years and non-existent in others. (See Exhibit 2) In fact, our projection estimates losses in some years. This is due to the fact that there are no reductions in shrink related expenses with pallet level tagging. Pallet level tagging yields manufacturers more than trey times the cost benefits than... If you want to get a fully essay, order it on our website: Orderessay

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