Put simply, "what you do not measure you cannot manage", said Jan Teeuwen, Logistics Consultant, Heineken Technical Services. Heineken's level of non-returns in fact amounted to between 0.5% and 4% of its total park of 40 million crates in Europe. The company decided to pilot a RFID system, known as "Chip in Crate" (CiC), to establish a clearer pattern of non-returns. The key requirements for the chips were that they be invisible to the customer (i.e. positioned discreetly on the crate), visible to the project team and also removable for recycling purposes. A pilot involving 9,600 crates at one brewery offered data as to where the 1% of non-returns were being lost. The advantage of the chip system was that it was simple to install and provided valuable information for overall supply chain management.
Tracking Perishables:.
For Sainsbury's, RFID represented a potential tool in pursuing its goal of a "simple, stockless, paperless, accurate" supply chain. The main problems affecting implementation, explained Andy Banks, Supply Chain Development Director, were the relatively high cost (US$2 per chip in 1996) and the fragmented state of the sector, with a range of manufacturers and solution providers not linked by clear standards. Sainsbury's opted to go ahead with a pilot in 1998-1989 using chips to pallets and trays to track perishables both at distribution centres and at stores. .
The main benefits promised by the innovation were:.
• Better information which could be applied to whole supply chain .
• Labor savings .
• Reduced stock loss .
• More cost-effective supply chain management .
However, the retailer decided not to proceed with the project as the market was not then sufficiently developed to make a major investment worthwhile. The key then for Sainsbury's in the future is to "implement proven solutions which address specific business issues". .
A World Without Wires - Bluetooth Technology and its Application in Retail: .