SAP Takes RFID into the Enterprise

There are no detailed results about the initiative yet, but Metro plans to publish them within weeks, says Albrecht von Truchsess, a spokesman for Metro AG in Duesseldorf, Germany. He expects SAP to take a major role in bringing RFID technology into the supply chain.

"The Future Store is an important step on the way to creating an RFID roadmap for SAP and its customers," von Truchsess says. "SAP has the vision to create a complete RFID solution portfolio that will encompass applications and technology to close the loop between physical objects and business processes, as well as a comprehensive services offering."

Metro Future Store personal shopping assistant

He says the technology used for the Future Store will play an important part in building SAP's Adaptive Business Network concept. "Supply chains are moving from a linear model to a model of a virtual, dynamic network of business partners," von Truchsess says. "For companies to create their own Adaptive Business Network, they need to think beyond their own four walls. RFID technology supports collaboration between retailers and manufacturers and helps to create higher volumes, faster turn-around, and mutually improved margins—all essential aspects of the Adaptive Business Network model."

Following the Metro Future Store project, SAP and Metro "will have a nice advantage over others who haven't done this," Koch says. "We can understand the real issues and can be more proactive."

SAP is evaluating what it has learned to date from the project and will develop a business case for Metro to use RFID more broadly in its business. It's also collecting data to help in building its own RFID product line. "We want to get even deeper insights into this," Koch says. That includes extending RFID capabilities into manufacturing applications. And to that end, SAP will begin to look into future pilots involving partners in the manufacturing industry.

Nothing on the order of the Metro Future Store is currently in the works, SAP’s Blanchard says. But he expects the Metro project will have a huge impact on the marketplace. "Metro had a lot of guts to do what they did, and they've been enormously successful at it," he says. "I've talked to a huge number of retailers, consumer goods manufacturers and other companies, and they all say, 'Where do we get started, what do we do, what about all the standards?' My answer is, 'Just start.' You have to learn by doing. The business case is strong enough in a variety of capacities to use this technology. This technology is here to stay."