This article gives a good background on the reality of Wal-Mart and RFID. Key points:
Wal-Mart's wll require its top 100 suppliers to use RFID tags on cases and pallettes of consumer goods shipped to its distribution centers and stores by January 2005. "By 2006, we will roll it out with all suppliers."
Wal-Mart is unlikely to back off its requirement, because the retailer is convinced the benefits are huge. Sanford C. Bernstein & Co. estimates that Wal-Mart could save nearly $8.4 billion per year when RFID is fully deployed throughout its supply chain and in stores.
Wal-Mart has been studying the potential of RFID for more than 12 years. It has a facility in Rogers, Ark., in which it tests tags and readers from various vendors and studies how the performance of these products is affected by the environments in its distribution centers and storerooms.
RFID is not a simple plug-and-play technology. Wal-Mart will explain to its suppliers what they need to do to fulfill the retailer's requirements, but after that, they're on their own. Competitors and suppliers who are just beginning to look at this technology have a huge task in front of them.
Despite various "reasons" given why Wal-Mart cancelled its smart shelf project, they indicate they remain committed to something like it in the long term.
Posted by pbecker at September 18, 2003 09:09 AM