Walmart is an American global retail firm that owns and operates a network of supermarkets, cheap department stores, and hypermarkets. Approximately 60 of Walmart’s more than 11,000 stores and clubs are run under various identities. Workflow optimization is made possible by the company’s continuous supply chain innovation and development, including the use of RFID technology for inventory management and tracking. This has aided in their ability to lower costs, increase revenue, and lower prices.
Retailers must be able to regulate the supply chain and quickly spot fake goods or foods that can spread foodborne illnesses because consumers these days want to know the whereabouts of their food. When a foodborne disease outbreak occurs, everything becomes very risky for everyone involved. Food suppliers and merchants risk lawsuits, lost sales, and other financial losses. For regular consumers, things may result in serious health issues or even fatalities. Blockchain technology provides a solution.
Why does Walmart need blockchain?
Every year, Walmart Canada sends over 500,000 shipments across distribution centers and shops all around the nation using its own vehicles and outside transportation. Each invoice requires independent calculation and accounting for more than 200 data elements. These comprise the places where each cargo is stopped, the amount of gasoline the carriers use, temperature updates, etc. As a result, there are many inconsistencies in the data, and 70 percent of the invoices need to be reconciled.
The issue is that there are numerous incompatible information systems at the application level. As a result, reconciliation must be carried out manually, which is labor and time-intensive. By providing Walmart and its carriers with a shared single source of reliable information, automating the process by using a blockchain network eliminates the issue of incompatible corporate systems.
Integrating RFID Technology
RFID technology plays a crucial role in streamlining Walmart’s supply chain by enabling real-time inventory tracking and management. Combining RFID with blockchain technology creates a powerful synergy that enhances the transparency, traceability, and efficiency of the entire supply chain. RFID tags can provide essential data about products, such as location, temperature, and handling conditions, while blockchain offers a secure, tamper-proof platform for storing and sharing this information among stakeholders.
Walmart’s Shipment program
The sheer amount of data was enormous. Walmart Canada uses both its own transport fleet and outside carriers to deliver over 500,000 shipments each year to distribution centres and shops all across the country.
Walmart has a long history of being a supply chain management pioneer. But despite its strength, it was unable to escape an issue that had plagued the transportation sector for years: significant data errors in the invoice and payment processes for freight carriers, which necessitated expensive reconciliation efforts and resulted in protracted payment delays. Then, in response, Walmart Canada pioneered a solution: it used blockchain, a distributed-ledger technology, and RFID data to develop an automated system for processing invoicing from and payments to its 70 third-party freight providers.
Conclusion
Walmart successfully integrated RFID and blockchain technology to optimize its supply chain and streamline inventory management. The combination of these two technologies enables greater transparency and efficiency in tracking products, managing inventory, and reconciling invoices. By leveraging RFID and blockchain, Walmart has demonstrated a commitment to innovation and continuous improvement in its supply chain management, setting an example for other retailers and industries to follow.
