Resource Logistics with RFID in Food Retail
Chipotle Mexican Grill Inc., founded in 1993, is a US-American food company that operates over 3,000 restaurants and employs almost 100,000 members of staff worldwide. Headquarters are located in Denver, Colorado.
The company specializes in Mexican cuisine, focusing on the use of locally and sustainably sourced produce.
The aim is to digitize the supply chain and track produce. A digital inventory management system has been introduced in the restaurants in order to monitor the quality of produce and fulfill health and safety standards.
(Image Source: Chipotle Mexican Grill Inc.)
Process Requirements
Chipotle processes locally and sustainably sourced produce in its restaurants. A digital verification of the product origin is required.
As the company processes perishable goods, a strict control of health and safety standards is required. The digitization of logistics and products enables a reliable controlling of the supply chain.
Objectives of Chipotle
- Controlling the origins of goods
- Digital inventory management
- Controlling of health and safety standards
The Chipotle Solution
Chipotle has implemented an RFID system in a distribution center and in 200 restaurants in the Chicago area to optimize inventory and supply chain management. The solution consists of RFID-tagged containers, RFID handhelds and a software platform.
Produce is packed into containers at the point of origin. An RFID label is applied to each container. The chip inside the label contains produce information, including its origin. The containers are then transported to the Chipotle distribution center.
Every delivery to the distribution center is identified using RFID readers. The information on the RFID labels is recorded and transferred to a software platform, which displays inventory information of all received goods.
Goods are transported to restaurants from the distribution center. The RFID tags are read using RFID handhelds on-site, accessing the stored information on the RFID chip. A detailed overview of the inventory in the distribution center as well as in the restaurants is enabled. Based on the digital inventory management solution, an optimized planning of produce deliveries to restaurants is carried out.
Technology Partner
Hardware & Software
- Avery Dennison smartrac – RFID Tags
- Zebra Technologies – RFID Handhelds
- Mojix – RFID Software
Advantages
- Controlling the origins of goods
- Digital inventory management
- Controlling of health and safety standards
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Technologies
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