Fresh Produce Discussion Blog

Created by The Packer's National Editor Tom Karst

Tuesday, March 6, 2007

RFID FUBAR

RFID Fouled up beyond all recognition? Not hardly, but being first with a technology like RFID isn't a cakewalk, and Wal-Mart is changing strategy, this story from ComputerWorld notes.
From the story:

Though Wal-Mart Stores Inc. expects the number of its stores using radio frequency identification systems to reach 1,000 in April, the retailer has come under fire from some analysts and users for failing to meet its plan for installing the technology in its distribution centers. A spokesman last week acknowledged that the company missed its goal of installing RFID technology in 12 of its 137 distribution centers by the end of 2006. Simon Langford, director of RFID and transportation systems at Wal-Mart, said the missed goal reflects a change in course by the company to instead concentrate on RFID-enabling its retail stores.
Wal-Mart began its RFID journey early in this decade, when it mandated that its 100 top suppliers start tagging all cases and pallets carrying merchandise by January 2005. Wal-Mart officials said 600 of its suppliers are currently RFID-enabled. Despite the missed deadline for installing the technology in the distribution centers, Langford insisted that Wal-Mart’s overall RFID effort is on track and has been successful so far. “We’re accelerating [RFID adoption] and at a greater pace than last year,” he said.

TK: Wal-Mart officials quoted in the story insist that RFID at retail has helped reduce out-of-stocks by 30%, while critics say the lack of full RFID adoption at DCs is troubling because the items there will be invisible to the supply chain. Here is one observer who had some questions about RFID research at the retail level. Here is a story where Wal-Mart insists it is not backtracking on RFID.

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3 Comments:

At March 9, 2007 at 10:15:00 AM CST , Anonymous Anonymous said...

Tom,
As RFID @ Wal-Mart applies across the board, are you aware that they are using the Reduced Space Symbology (RSS-14) bar codes, now called "Data Bar" in several of their DC's and planning on expanding this in 2007? This technology will allow more data at the item level (eventually to perhaps replace the PLU).

 
At March 9, 2007 at 11:25:00 AM CST , Blogger Tom Karst said...

Thanks for that perspective. I'll try to run down Gary Fleming at PMA for some more insight on the RSS issue. Any idea how many DCs are using RSS bar codes now?

 
At March 12, 2007 at 11:05:00 AM CDT , Anonymous Anonymous said...

Gary's is the man to know. W*M is looking at around 27 DC's currently. Keep in mind that Loblaw's is also using, and expanding their usage as well. These little bar codes on individual pieces of fruit can assist in vendor management (with a view towards actual supplier shrinkage), improved pricing accuracy and ease of checkout at the POS.

 

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