The German mail order retailer Otto has started using the RFID solution  supplied by Siemens in live operation at its goods distribution center in Hamburg. The decision was taken after several months of testing designed to establish the economic viability of the radio identification tags and the resultant reduction in product shrinkage. RFID transponders are affixed to the packaging of high-value mail order goods such as cameras, mobile phones and jewelry, which are thus uniquely labeled on their way to the customer via the central warehouse in Hamburg and the Hermes distribution depots. This allows Otto to track the transport route of the mail order goods from start to finish and to localize the precise point at which any items are  lost en route.
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