Walmart started the initiative of radio frequency identification (RFID) in the supply chain industry in the year 2003. Saving costs and improving operational efficiency are the two prime goals of Walmart’s success. Bearing that in mind, Walmart embraced RFID technology to become the world’s largest retailing store.
In 2005, Walmart faced several challenges, among which cost and privacy were on top. As the years wind down, high security and low price of RFID tags gave new hopes to supply chain industries and retailing company.
Benefits of RFID for Walmart
With RFID, Walmart centers identify and track its assets in a fast and effective manner. The RFID tags are powerful and rapid to transfer the information from products to a scanner. The ability to transmit fast and real-time information surpasses the RFID tags over barcode scanners that were conventionally used to identify products.
Walmart’s supply chain reduces the Bull-whip effect and limits the excess of inventory across the distribution center by extracting benefits from RFID technology. The Bull-whip effect in the supply chain creates changes in the company according to the demands of customers, and it flows up in the supply chain business. Therefore, Walmart planned in 2010 to house garments with RFID tags. Nonetheless, privacy was still a significant concern as customers invaded that tags were used to track their locations.
Moreover, around the year 2013, top retailing stores including London Fog, Michael Kors and Anne Klein embraced RFID technology after seeing decrement in the price of RFID tags as well as improved performance of hardware, software, antennas, handheld scanners, and immobile portals.
The strong relationship between Walmart and RFID technology was improved in the same year as it offers two essential benefits such as;
High Inventory Visibility
No doubt, Walmart can make its inventory management clearer and more visible while shaking hands with RFID technology. The software component of the RFID mechanism allows in-stores and online websites to keep tracking all products. The digital information enables the store to determine how many products are left in the store, and how many are still needed. In this way, Walmart can refill its stock.
Customer Satisfaction
By RFID technology, Walmart can improve its grocery pickup system, which enables consumers to buy goods online and acquire them from in-store whenever they’ve time. The mechanism of RFID helps Walmart’s customers to track the location and quantity of a specific product in more than one store, enhancing customer satisfaction and convenience.
In conclusion, there exists a strong relationship between Walmart and RFID technology. Working with RFID technology, Walmart has improved the functional efficiencies since the beginning. And now, both of them are working side by side to bring steadfast advancement in supply chain industries and inventory management. The relationship between Walmart and RFID creates paths for other retailing companies to embed their sales floor items or track shipments.
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