Wal-Mart's RFID applications: lessons learned from those who left later - Wal-Mart, RFID-printing industry

Wal-Mart's RFID applications: lessons learned from those who left later - Wal-Mart

, RFID-printing industry

Plans to change the Although Wal-Mart is expected to make use of RFID in the April number of the system to reach 1,000 stores, but retailers for failing in its distribution center planned deployment of the technologies have been a number of analysts and customers criticism. Wal-Mart spokesman acknowledged the company

not achieved before the end of 2006 in its 137 distribution centers in 12 centers to deploy RFID technology goals. Wal-Mart director of RFID and transportation systems SimonLangford its interpretation, does not meet the target line changed to reflect the company: The company should focus on implementing RFID technology on its retail stores.

Beginning of the century Wal-Mart began its RFID journey, when it was mandatory for the largest of its top 100 suppliers in January 2005 prior to the delivery of goods to all the boxes and pallets of goods with RFID tags . Wal-Mart officials said the current 600 suppliers to develop RFID technology.

Distribution center despite missing the deadline for the deployment of this technology, but the overall Langford insisted that Wal-Mart RFID effort is on schedule and so far successful. He said: "We will accelerate RFID adoption, steps go far bigger than last year."

Break game However, the New York City Oyster Bay MichaelLiard ABI Research analyst, said such a strategy shift likely to slow Wal-Mart to increase its supply chain visibility to speed.

Liard believes that RFID technology will be deployed to the distribution center will enable the company can be reached from the suppliers of goods when the mark merchandise. When the goods on the RFID functionality do not have the distribution center, the product was not visible, so the supply chain, Wal-Mart will not get the full benefits of RFID technology.

But Langford think the first thing to install RFID technology in stores, so that the retailer can better monitor inventory flow and the need to respond to questions or surge in demand and supplier collaboration.

Langford said, store personnel can better use this technology to maintain adequate goods on the shelves of every store out of stock and reduce the number of products.

Use of RFID technology will reduce the number of out of stock products by 30%, while the Treasury to move the product on store shelves by the increased efficiency by 60%.

Langford declined to estimate when this technology will be deployed to all of Wal-Mart distribution centers. He pointed out that the current five deployment has helped companies improve the efficiency of the supply chain.

Procter & Gamble: the introduction of effective RFID

Cincinnati Procter & Gamble is to achieve Wal-Mart with RFID chips to the product requirements of the top 100 suppliers. According to its spokesman PaulFox said the company has improved the accuracy of this retail supply, especially in time-sensitive promotional period.

RFID technology than the bar code system has been a huge improvement. Fox pointed out that as each RFID tag has a unique identifier, so workers will not scan an RFID tag with two, while the lack of these features bar code technology. RFID P & G Automation also accelerate the product to distribution centers in the process of speed: hand collecting on a pallet bar code data requires 20 seconds, while only 5 seconds to read RFID data. Each RFID tag

now cost less than 10 cents, so the technology is economically feasible. Fox said that P & G's total investment in RFID technology (millions of dollars) have been recovered.

Prospects to be seen

Wal-Mart, some analysts still believe the RFID program will benefit all suppliers. ABIResearch analyst MichaelLiard said, to determine whether RFID technology more cost effective than the bar code system needs more data.

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