Rfid in Walmart

2181 Words Apr 16th, 2012 9 Pages
RFID in Walmart

Submitted By: Kritika Goyal (22) & Molshri Bhati (61)

INTRODUCTION: In June 2003 Wal-Mart first announced its plan to implement RFID technology in its supply chain by January 2005; this caught many of the suppliers unawares. Though the plans envisaged compliance from the top 100 suppliers, around 129 suppliers jumped into the fray, afraid of being left behind in the race. RFID technology was invented in 1969 and patented in 1973; after thirty long years WalMart has demanded its implementation. Expectations are high, unfortunately RFID technology is still in its infant stage.

In November 2003, Wal-Mart once again asserted its requirements. The following were explicitly spelt out: 1. What the EPC (Electronic Product
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The ability to quickly verify actual quantities of items in a store not only enables the retailer to replenish the stock at the right rate of sale, it also eliminates countless hours of searching for the products in backrooms, overstock boxes, risers and any number of other places merchandise finds to hide in a store. When the count is exact as the product is received, matches the invoice with precision, and is then accurately tracked until it is sold, shrink can theoretically become just a bad memory.

There is still theft to consider, however RFID offers some improvements in that respect as well. The key is real-time knowledge of the status of key merchandise. Associates can react to missing one item, instead of hundreds or thousands of dollars worth, before they know there is a problem. Concerns have been expressed over privacy and tags could be used to identify concealed items, but that is not the path to success. If you wait to react to a theft, you still must deal with the situation and there are several

pitfalls in apprehending shoplifters and processing internal theft situations. So the bottom line is that it is about immediately identifying loss and taking active measures to prevent further loss. To those expressing concern over the proliferation of technology like RFID in retail, the challenge is to keep the concerns on a productive level. Retailers are not motivated by big brother-like intentions. They are

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