Rfid at Walmart

Wal-Mart was once the world’s top retailer that used technology to reinvent global supply chains. However, the world has now caught up with the leader and is forcing stores to focus more on their customers. Wal-Mart is no longer the leader and it now faces a crossroads in the technology field (Wailgum, T. 2007).

Walmart was founded in 1962 and by 1990’s grew into the biggest retailer in the United States. Many business organizations such as Walmart invest heavily in information systems to achieve the following strategic business objectives: operational excellence; new products, services, and business models; customer and supplier intimacy; improved decision-making, competitive advantage; and survival. Successful attainment of these objectives aids company in implementing corporate strategies and achieving its goals.

RFID was invented in Soviet Union in 1945 by inventor Leon Theremin. The main use for RFID during 1945, was to track audio information and sounds to identify if aircrafts was friend or foes of the Soviets in World War II. Once the World War was over, similar technology started to be developed such as IFF transponder, Automatic Identification and Data capture (AIDC), and Passive Reader Active Tag and much more. In modern times, RFID is used in many ways, for example in keep track of good in stores, collecting toll payments without contact, and keep track of bagging at the airport. Have you ever bought an item inside a store and wondering what happens when the cashier scans the barcode? This is RFID’s Active Reader Active Tag at work, it’s a system that use tags to transmit signals and reply once the information is received from the item scanned. In addition, Passive Reader Active Tag (PRAT) is often used in stores as well by overnight stockers and inventory staff. PRAT allows the user to scan barcodes to keep track of inventory in store, as well as order inventory. RFID has increased in applications outside of retail store chains many common ones such as badges need to access building doors, lock on newer vehicles car doors and commutation devices.

Wal-Mart began as a small discount retailer in Rogers, Ark., Wal-Mart has thousands of stores in the U.S. and has expanded internationally. Through innovation, they are letting customers shop anytime and anywhere online, with mobile devices and in their stores. Wal-Mart went to public in 1970, and it became the first company to reach 1 billion within 9 years. Up to 2004 Wal-Mart has 4,906 store world-wild, and 9 billion in profit. Despite some of controversial issues about its operation approaches, Wal-Mart’s dramatic rapidly growth is phenomenal in business community, and its successful business model has been eulogized world-wide (n.d., Walmart, 2016). Wal-Mart creates opportunities and brings value to customers and communities around the world. Wal-Mart operates over 11,500 retail units under 72 different name in 28 countries and e-commerce websites in 11 countries. They employ 2.2 million associates around the world and 1.4 million in the U.S. (Our business, 2016). Wal-Mart is world 's largest retailer and the world 's largest, fastest-growing and most dynamic ecommerce organization. Based in California 's Silicon Valley with operations in Bangalore, India and Sao Paulo, Brazil, Wal-Mart’s Global e-Commerce leads all online and mobile innovation for their corporation. Wal-Mart became an international company in 1991, and they operate in 27 countries outside the United States. With more than 6,200 stores internationally, they leverage their global resources to meet

* Track sales of specific items, on specific days, spikes in sales, colors, sizes, flavors, etc.

Wal-Mart is arguably the most dynamic corporation in the last 50 years in the United States, if not the world. Arising from its beginnings in Bentonville, Arkansas, it has grown to over 4,400 discount stores, super centers and corner markets worldwide. Wal-Mart continues to expand despite public criticism of its labor practices as well as complaints about their treatment of competitors. The many strengths of Wal-Mart, like their low cost production and marketing practices, will aid Wal-Mart as it continues to grow in the retail

By 1990, Walmart had opened stores in 32 states and became the nation 's #1 retailer in both total sales and profit (http://corporate.walmart.com/our-story/our-history). Walmart’s business has largely matured. Besides its large scale in consumer product purchasing, Walmart also holds four key sources that give it a competitive advantage. First, Walmart has a highly advanced and efficient supply chain system. Walmart built a vendor-managed inventory system to manage its warehouses and its distribution centers are strategically located in order to ensure timely deliver of its products. Second, Walmart minimized its operational costs. Walmart built stores in small rural towns in the early years, and then concentrated on expansion once name recognition had been achieved. This significantly decreased the payroll and rent cost. Third, Walmart had sufficient Human Resources (HR) management. Walmart shared profit with associates in the form of salaries, bonuses, discounted stock, and information in contrast to other retailers. Lastly, Walmart developed an advanced information technology system. Walmart developed its own information system to help it manage all stores and distribution centers remotely by collecting and analyzing data in a timely fashion. As a result, Walmart garnered the capability to expand its market with dramatic cost savings improving profits and enabling continued growth of Walmart stock. Considering alignment with its competitive advantages, Walmart

Since Walmart has been able to dominate the market for affordable and convenient retailing throughout the world, we know by hand that Walmart has all the components that a company needs to be successful in today’s market. Walmart’s has been able to live up to its slogan “Save Money, Live Better!!!” by providing all its customers with the best prices and values, but by also providing great service, convenient locations etc. Walmart “has grown substantially over recent years, and has experienced global expansion, which only helps its prosperity. This is one of Walmart’s greatest strengths – they are recognized on the global scale and have high brand equity. Walmart is the largest employer in the United States and a retail giant that has the clout to make or break suppliers. This is a strength because they have most of the power in their targeted market. Walmart is the largest grocery retailer in the United States, with an estimated 20% of the retail grocery and consumables business, as well as the largest toy seller in the U.S (Jan).” Walmart strengths include:

     There are four main aspects of strategic impact from this decision by Wal-Mart. They are, in no particular order: volume and cost, supply chain extensions (upstream), innovation and supply chain extensions (downstream). Looking from the volume and cost perspectives, the economies of scale of RFID manufacture will drastically change due to Wal-Mart’s move. As of now, the annual volume of RFID tag shipments from top 100 suppliers is estimated at 1 billion tags. With Wal-Mart being such a powerful company that sets standards for manufacturers, their entrance into this new market will result in other companies benchmarking their behavior, which in turn, will result in a significantly lower price per tag. Current average cost per tag ranges between 25 to 50 cents. With Wal-Mart’s entrance, analysts are expecting the price per tag to drop towards the 5 cent range, which will consequently allow the expansion of RFID technology into new markets.

Walmart is the largest supply chain in the world which distributes different products of multiple firms. For the last fifteen years, Walmart has grown significantly in terms of revenues, sales volume, profits, and gradually gaining its market share. In addition, the firm has successfully to make a significant transition from a regional retailer to become a world largest brand. The main reasons contribute to Walmart?s success due to smart management, adapt new latest technological advance, strategic partnership collaboration, innovate operation system such as hardware and software application.

Wal-Mart is the largest retailer in the world. Wal-Mart’s products and services come with the highest standards, yet the lowest prices. Through innovative thinking and leadership through service, Wal-Mart has shaped itself to what is today and promises to be tomorrow. Wal-Mart promises to provide a better life for their customers, associates, suppliers, and families through lower prices than their competitors. Additionally, Wal-Mart has 23 million associates with 260 million customers every week that have the choice to shop at their stores, online, and through mobile devices. (Walmart Corporate)

Organization - wide common platform technological applications having lean methodologies of operations are highly appreciated by the firms nowadays. These technological solutions provide better planning of resources and optimizing the processes of the company and profit. The purpose of this research report is to explore one technology that has made a great impact on the supply chain and is increasingly becoming more popular. The Radio Frequency Identification (RFID) as an advanced technology in supply chain management is the technological solution most firms are looking at these days. RFID Technology is a smarter way to track shipments, time deliveries, and keep inventories which in turn makes operations faster and more efficient. Moreover, RFID helps the organization to enhance its overall efficiency. But it does not come without its own pitfalls which delays the adoption of this technology due to cost related and implementation issues. This report aims to identify the attributes of RFID adoption with a focus on importance of RFID in enhancing the supply chain performance, challenges to RFID implementation and its applications in supply chain management.

In the recent past financial periods, Wal-Mart’s revenues have come under threat starting with the recession and poor performing economies which directly affects people’s buying power. Reduction in revenues as a result of poor performing markets such as India and Korea will also force the retail group to downsize on its operations which is also affected by the production costs going high.

Generally, Wal-Mart’s reputation of offering quality and low cost products and its presence in the global market helps keep the company strong. Wal-Mart’s strategic growth plan is aggressive and evident in the number of retail stores it operates domestically and internationally. The wide array of stores built to suit local economies enables them to attract a wide array of customers and keep their sales growing. In the financial year ending January 31, 2011 the company recorded total sales amounting

The history of RFID can be traced back to the times of World War-II. However, the first practical application of this technology could be found in USA where Mario W. Cardullo received the first patent for an active RFID tag with rewritable memory on 23rd January, 1973.