Marks & Spencer (M&S) claimed that the suppliers of 80% of its chilled products were either "committed to" or "enthusiastic about" radio frequency identification (RFID) after seeing significant improvements in production and despatch control, productivity, accuracy and service.
The retailer's head of food logistics Ian Mumby, speaking at the food business forum CIES supply chain conference in Barcelona, said that more than 100 firms were supplying six depots using plastic cases with RFID labels.
Worldwide Fruit, for example, increased delivery accuracy from 95% to 99.8%. Deliveries to M&S depots were now so accurate that they were not even checked on receipt and payment was made on advanced shipping notes, said Mumby.
He said that more than 4.5m trays and 500,000 wheeled dollies used by M&S have embedded RFID tags, with 1m tags being read per week. Discrepancies between inner labels and outer tray ends, miscounting and inaccurate retail prices were being picked up, he said. Some suppliers have seen a payback purely from better service levels, because M&S fines suppliers if goods are rejected.
He said the point when M&S would process more chilled foods with RFID than barcodes was fast approaching.