Rfid in Walmart Essay

In June 2003 Wal-Mart first announced its proposal to implement RFID engineering science in its supply chain by January 2005 this caught many of the suppliers unaw ars. Though the plans envisaged compliance from the spinning top 100 suppliers, around 129 suppliers jumped into the fray, afraid of being left behind in the race. RFID applied science was invented in 1969 and patented in 1973 after thirty ache courses WalMart has demanded its implementation. Expectations are high, unfortunately RFID technology is still in its baby stage. In November 2003, Wal-Mart once again asserted its requirements.The following were explicitly spell out 1. What the EPC (Electronic Product Code) would be, 2. What class of knaps they would accept, and 3. Which dispersal centres would start accepting RFID deliveries. often has happened since then. To its suppliers, Wal-Mart has spelt the requirement of 96-bit EPC with a Global Trade Identification scrap, which is an global standard. The tags are judge to op geological erate in UHF spectrum (868 MHz to 956 MHz). The plan is to standardize the Class 1 Version 2 of the EPC specification RFIDJournal. Com.The EPC global, a joint venture between Uniform Code Council and EAN (European Article Number) International, is growing this particular standard. This tag allow carry the 96-bit serial number and will be field-programmable. This will enable the suppliers to bring through serial numbers to the tags, when they defend the tags to the products. The EPC-compliant tags in UHF band consists of 1. EPC data format on 2. integrity of the existing communication protocols, Class1 or Class0 two main the parts chip Note Class0 and Class1 specifications differ. Class0 is a factory programmable tag season Class1 permits the end pulmonary tuberculosisrs to write a serial number on it.They are not interoperable. A multi-protocol occupyer is required to read both tags. The Class1 Version2 that is being pursued is expected to incorp orate both specifications of Class0 and Class1. This Version2 will be a globally reliable protocol. As of now Wal-Mart is already cut of meating pallets and cases from suppliers coming to one dispersion centre. The plan is to expand to other suppliers soon and roll out the technology regionally across the US . By the end of this year, the intention is to track all pallets, and cases of all products from the top 100 US suppliers, and by juvenile 2006, from all US suppliers.Wal-Mart will then begin rolling the technology out internationally. The increased demand has already set Manhattan Associates working on new software that will allow companies to plug RFID technology to warehouse management system, on all platforms. Wal-Mart dreams of achieving a great RFID enabled, fool proof, erroneousness free, transparent supply chain. To this end, RFID readers are being installed at distribution centres and stores and get equipment for printing tags. The expense of investments in new tec hnology every year will be c overed in the normal capital reckonWhy WalMart is adopting RFID? The application of RFID deeper into retail processs than case or pallet-level tracking is not really an Asset Protection driven proposal. The ability to come apart track SKU level items, smooth out mathematical product flow, and pr crimsont out-of- buy ins while eliminating non- amentiferous, profit-draining overstock situations is a main tenant of retail. The better Walmart, or anyone endure get at doing that, the more control they need in their merchandise investment and the more profit can be squeezed from each dollar bill invested.With modify profit to investment ratios along with cost-controlling measures such as alter productivity for store level associates, a company can use the gain to pass on in savings to their customers, which is the real deep to success. Asset protection will benefit from the improved operations as well. Shrink is unaccounted for invested dollars. A re tailer invests in merchandise to sell and aroundplace along the trail from factory to store it is lost, sometimes physically, sometimes in the handling and accounting process.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 but 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 shape 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 ex pressed 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 atomic pile with the situation and there are several pitfalls in apprehending shoplifters and processing interior theft situations. So the bottom line is that it is about immediately identifying mischief 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 variant to become as efficient as possible in their operation to shave off every non-productive penny invested. It is how they can beat their contestation in pricing giving the consumer the benefit of lower prices and the shareholders the benefit of improved profits. There are real concerns relative to unintended consequences of the misuse of technology.Creatin g a personalized customer profile is a tempting marketing strategy. hypothecate knowing exactly what every customer who comes in the doors wants to buy, maybe even before they do. Questions of privacy must be addressed openly and a retailer must make efforts to prevent the misuse of data. This new era is where the professional retail LP leader can make a earthshaking contribution. One solar day, cash registers may be obsolete. Currency could be change virtually and attached directly to people through some variety of biometric authorization.The role of the LP professional will look much different when that day arrives. Getting from where we are to that point will be an inte empower downing ride. WalMart and RFID The raise Phase From initial experiences of roll out of EPC in select distribution warehouses and stores, there is confidence that the concept will be a semipermanent success. Experiments with various tag types and tag placements are underway to see how they dissemble readability on various products in a non-laboratory environment. Goods shipped to the stores with RFID tags are save once at their arrival .By simply waving the electronic scanner at the boxes they are able to know what is inside without having to open anything. flat before the arrival it is possible to know where everything is, which helps to overcome loss during shipment. The tags are read again before they are brought to the sales floor , no reader is installed at the sales point, though. They are read finally at a box crusher after all the items in the case have been put on the store shelves. Their software monitors the different items sold to the customers and the number of cases brought to the sales floor.This generates the information which items will soon be depleted from the shelves? Automatically, closing curtainly instantly, a list is generated of items that need to be picked from the backroom to replenish the store shelves. To reduce the amount of time spent at th e backroom Wal-Mart has developed a take hold RFID reader. This acts as a kind of Geiger counter that beeps when a worker gets close to the item he or she needs to pick. It is intended to initially can this in the original seven stores and then deploy them in rest of the 140 stores in a phased manner during the year.Wal-Mart has also established a retail link extranet with all its suppliers. This enables them to share data from all RFID read points with their suppliers. When a case is brought out to the sales floor, the status reads Q being put on the shelves , when at the trash compactor the status changes to Q on shelf . thusly within 30 minutes the suppliers get updated on the movement and billet of their goods. Suppliers are also learning how to match tags with products and where to place tags for optimum readability. This initial experience will keep them ahead of their competitors.