According to Using RFID, Following RFID mandates from other retailers around the world, the 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 being provided by UPM Rafsec. Through RFID the retailer aims to gain additional competitive advantage through supply chain optimisation with its suppliers. There will be up to 30 suppliers involved in the pilot's first phase. The tags will initially cost suppliers euro 0.23 each (valid for five months from 15th December 2005). There are two different label types available within the pilot programme: a standard 4x6" label, and the UPM Rafsec UHF FlagTag. The FlagTag, developed with SATO, works with fluids, metal, glass, and other problematic pallet contents, as the part of the label that contains the UHF tag is folded so that it sticks out vertically from the pallet surface.