Jan 27, 2008

Wal-Mart drives RFID uptake by charging suppliers


Wal-Mart has put pressure on suppliers to speed up their implementation of RFID by charging £1 ($2) per pallet from 1 February for every non-RFID-tagged pallet shipped to its Sam's Club distribution centre in Texas.

A spokesman for the world's largest retailer said the fee would cover the cost of sticking the RFID tags to each pallet and was a "short-term solution" for suppliers needing "more time" to implement their own RFID tagging.

He said RFID would enable the US retailer to "improve the efficiency of the supply chain, ensure the timely arrival of products, provide assurance of quality and freshness, reduce misdirected shipments and assist in asset protection".

"No other technology comes close to doing what RFID can do and how Wal-Mart implements the technology will take shape during 2008," he said.

Sam's Club is leading the process because it has fewer suppliers than Wal-Mart's main superstores and fewer SKUs, which means the implementation of RFID tagging is easier.

Sam's Club is a members-only wholesale business that offers a broad selection of general merchandise and large-volume items, often in larger individual packs than are available in Wal-Mart stores and bought in bulk or by the pallet.

The 584 Sam's Club locations contributed £21bn to Wal-Mart's total revenues of £176bn in 2007.

No comments: