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German retailer REWE has started an extensive pallet-level RFID pilot at its Norderstedt distribution centre in Germany. The UHF Gen 2 inlays used in the pilot are provided by UPM Rafsec. Following RFID mandates from major global retailers, REWE Group has itself decided to begin implementing RFID and is the first to use the latest Gen 2 technology.

Through RFID implementation REWE aims to strengthen its competitive advantage and market position by optimising the joint supply chain with its suppliers. There will be up to 30 suppliers involved in the pilot’s first phase. To help them access quality RFID labels at a competitive pricing of 23 euro cents each, REWE decided to bundle the projected need to one supplier.

REWE’s partners will have access to a label pool via the REWE RFID intranet where they can order the labels. The offer will be valid for five months starting from 15 December and ending 15 May 2006. There will be two different label types available.

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