Metro, the German retailer, reportedly plans to penalise suppliers up to £1.35 per pallet for pallets that do not carry RFID tags. The move to enforce contractual compliance comes as Metro expands its RFID supply-chain track and trace system from a pilot to 200 locations. Some 650 suppliers will be affected.
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The move follows Wal-Mart's decision several years ago, which gave the initial impetus to the RFID industry. Metro is the first European retailer to commit itself to the problematic technology.