Wal-Mart dreamt of achieving a great RFID enabled, fool proof, error free, transparent supply chain. RFID readers were installed st the stores and various centres. WalMart intended to budget this technological expansion by covering in the normal capital budget.
The company has installed RFID readers at the receiving docks, at the back of the building, near the trash compactors, and between the backroom and the retail floor.
RFID enables the store operators to know what is inside a contained by just waving the container having an RFID tag, the reader at the receiving dock records the data at the time of arrival, This ward off the ‘need’ to actually open the box to know the contents of the box. It is known beforehand what are the contents of the box. This also helps in reducing time loss during shipment. Before bringing the contents to the sales floor, tags are read again. Sales point are devoid of any RFID reader but to account the inflow and outflow material, readers are available at the box crusher point, thus cycle completes. The tag entered the database with arrival and finishes with the crushing of the box.
The software helps in keeping a track of different items sold to the customers and the number of items brought down to the sales floor. Information thus generated tells about the particular items that will be depleted from the shelves. The software keeps generating a list of items that need to be picked from the go-down or backroom on to the shelves.
Handheld RFID counters are provided by WalMart which act like Geiger counters WalMart has deployed them as pilot devices in some stores and will be deploying them in other stores.
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 'being put on the shelves' , when at the trash compactor the status changes to 'on shelf' .
Thus within 30 minutes the suppliers get updated on the movement and location 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.
Wal-Mart expects this technology to:
- manage inventory more efficiently,
- reduce numbers of data entry errors, and
- lower human labour costs in a distribution center
The retailing major is intending to use the data to keep track when stock is running low on shelves or when items have been stolen. The other advantages expected are:
The movement of inventory can be tracked
- Goods can be received and shipped faster
- Ease of predicting product demand
- Shoppers can save time
- Out of stock situations can be avoided
- Shoppers get a better deal as system becomes more efficient
- The right products are available at the right stores at the right time
- Boost sales
- Goods can be received and shipped faster
- Ease of predicting product demand
- Shoppers can save time
- Out of stock situations can be avoided
- Shoppers get a better deal as system becomes more efficient
- The right products are available at the right stores at the right time
- Boost sales
With all these advantages in sight, Wal-Mart is confident of sure success to ensue on adopting this technology.
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