Walmart still promotes RFID adoption within its supplier base
Filed in archive Supply Chain on February 25, 2007
Yesterday I read a recent article in Financial Times on Wal-mart's RFID policy in 2007 and it seems to me that the giant retailer doesn't want to step back from its original objectives. Wal-Mart has said it will maintain the "aggressive" RFID plan in spite of what analysts are calling continued scepticism among suppliers and retailers about the system.
According to a recent article retailer now expects to have five distribution centers and 1,000 of its US stores - about one in four - equipped with RFID readers by April. It wants more than 600 suppliers to be using the tags this year - 300 more than last year.
Consistent plans of Wal-mart, Tesco and Metro Group, in a situation that the general populace has taken a "Wait and See" position, brings this question to the mind that whether we'll see a huge change in RFID adoption level or not...
What do you think?
Tags: walmart walmart rfid supply chain plan tesco financial supplier metro group 2007 rfid+adoption
Vote for Walmart still promotes RFID adoption within its supplier base:
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Rating: 9.67 out of 3 vote(s) cast.
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Response from:
Chris Kapsambelis
(02/26/07 1:12pm)
Response from:
Lori
(03/06/07 12:12pm)
One of two things is going to happen - either Wal-Mart's forcing its suppliers to adopt this technology will create demand and thus lower the price of RFIDs, or Wal-Mart will lose a lot of business. Because it's a retail giant, I would suspect that the suppliers who are big enough to absorb the cost will become stronger players in the market. The smaller suppliers are basically screwed.
RFID is not a new idea - I wrote about it four years ago. What's sad is that this issue is still a hot one years later. Even back then, Wal-Mart was pushing for suppliers to use the technology. Fine - then supply them with the readers! The tags themselves aren't the issue.
RFID is not a new idea - I wrote about it four years ago. What's sad is that this issue is still a hot one years later. Even back then, Wal-Mart was pushing for suppliers to use the technology. Fine - then supply them with the readers! The tags themselves aren't the issue.
Response from:
cold logistics
(03/11/07 12:24am)
As prices for readers are coming down we should see more RFID initiatives. Here in Australia we have no Wal-Mart but Australia Post is the leader in adpoting this technology.
Response from:
panchalee
(03/16/07 12:40pm)
wall-mart is the big outlet..without them..hard to reach the customer
Response from:
Substance Abuse
(05/11/07 4:59am)
Changes are to be made when you think your company needs a better look or approach. That's for them to decide. But if your company slogan is Save the world it would be a mistake to start investing in polluting technology if you know what i mean.
Response from:
Drug Rehab
(09/20/07 10:50am)
Wal-Mart is retail commerce in the United States. There policies will become supplier staples if they impose their will enough.
Response from:
drug free rehab
(09/21/07 9:10am)
Being such a big company and all they need to track things very easily and because of the complexity i think there is no other way to do so.
Response from:
Drug Treatment
(10/01/07 2:21pm)
When will Wal-Mart open business in the European Union ?
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Most of the story is old news to bloggers who follow RFID, but what caught my attention was the fact that Wal-Mart declined to make an executive available for comment on its RFID efforts. This is a clear indication that Wal-Mart is indeed backing off its commitment to use RFID.
Since then two more factors have emerged that are significant. Some time in 2006 Wal-Mart quietly handed off the prime responsibility for the implementation of RFID from the IT team, that was spearheading the project, to the Operations group, with IT playing a supporting roll. This is an indication that hence forth the use of RFID is not an experiment, and needs to be cost justified. With a negative ROI, it’s hard to believe that Wal-Mart still intends to proceed with the vigor of the past.
The only positive remarks have come from Wal-Mart’s IT department. Since 2003 executives from IT have been the primary advocates for RFID and stand to loose big if RFID fails.
If Wal-Mart wanted to counteract the damage done by the Wall Street Journal, they would have an executive from Operations providing projections for the use of RFID.