The Champion of RFID is ... Wal-Mart?
January 18, 2008 2:41 PM
comment(s) - last by
An example of an EPC RFID tag in use at Wal-Mart
Wal-Mart plans to strong-arm suppliers into using its RFID tagging system
RFID already has a
largely due to the unsavory prospects of
, possibly by
. There is a significant
public wariness to the technology
, which largely stems from these issues, which unfortunately causes people to often overlook its
practical business uses
By using RFID tags during shipping, pallets of goods can easily be located, identified and tracked as they move across the country. This can lead to great cost savings while enhancing the supply chain. Such devices operate in either the 433 MHz and 2.4 GHz frequency, and thus pose no more electromagnetic radiation concern to users than the myriad of
other wireless signals that surround us in our daily lives
adopted RFID early and has since pushed its suppliers to adopt the system, which it feels is revolutionizing its shipping processes. For three years now the company insisted its suppliers RFID tag shipping pallets for its Wal-Mart retail and Sam's Club warehouse stores.
Now Wal-Mart is using Sam's Club
as a proving ground for the new technology
, by economically forcing its suppliers to adopt the system. The new, more forceful, push will begin with Walmart's
DeSoto, Texas distribution center that distributes pallets to Sam's Club stores across the southwest. Starting January 30, all pallets entering the center must be RFID tagged or suppliers will face fines of $2 per untagged pallet.
An RFID tag costs about 20 cents to manufacturer.
Wal-Mart explains that the significantly larger fee is not designed to be punitive, but covers the costs of labor for Wal-Mart having to reprocess and tag the pallets themselves. The fee allows companies without existing RFID infrastructure to temporarily pay Wal-Mart to deal with this issue, giving the supplier time to adopt RFID logistics.
Sam's Clubs 700-stores accounted for $41.5 billion of Wal-Mart's $344.9 billion in revenues in 2007. The stores use fewer suppliers than the Wal-Mart retail chain, so the company sees them as an ideal proving ground for the technology.
The system and accompanying fines for non-comformers will be phased in at all 22 Wal-Mart distribution centers over the next three years.
This article is over a month old, voting and posting comments is disabled
1/18/2008 11:33:01 PM
Knowing someone who has worked on implementing rfid tagging for a manufacturer who's biggest client is Wal*Mart, rfid is a nightmare to retrofit.
There are still too many rfid defects. When they are initially created it's easy to weed out dead rfids, but it's catching the rfids that read at close contact but do not work from several feet away that is difficult. Even with 99% good (which they're still not at), every 100 products out the door you have to find the one that cannot be read. How do you quickly find the bad one?
And the packing and shipping departments need to be redesigned, spread out further, so rfid readers from one packaging line does not read rfids from other lines. It's a waste of valuable real-estate.
Rfids cost manufacturers too much, and Wal*Mart is too powerful for manufacturers to resist.
RE: booooo rfids
1/19/2008 12:53:27 PM
While certainly there are firms that are struggling to implement RFID systems, there are many, many WMT suppliers that are successful. Just this past week there was a very positive article released by Daisy Brands, a manufacturer of dairy products (think sour cream). Here's a link if you want to learn how they're benefiting from the use if ePC on their product:
"Vista runs on Atom ... It's just no one uses it". -- Intel CEO Paul Otellini
Walmart Jumps on gOS Bandwagon: Here Comes "Rocket"
January 8, 2008, 11:59 AM
U.S. State Department Approves RFID Passports Amidst Privacy Concerns
January 4, 2008, 9:45 AM
Google Heralds Intention to Bid on 700 MHz Spectrum
November 30, 2007, 4:00 PM
IBM Providing RFID Luggage Tracking for Amsterdam Airport
October 8, 2007, 5:00 PM
RFID Update: Verichip Defends Safety of Implants
September 12, 2007, 8:16 AM
Apple's Tim Cook to Talk Profit Shifting, Taxes at U.S. Senate Hearing
May 20, 2013, 1:44 PM
HTC to Double Production Capacity for "One" Flagship Smartphone This Month
May 20, 2013, 10:10 AM
LG Showcases 5" Flexible OLED Technology at SID 2013
May 20, 2013, 8:18 AM
Air Force Expects to Save Over $50 Million in 10 Years by Using iPads
May 17, 2013, 12:26 PM
Former Intel CEO Regrets Passing Up on iPhone Gravy Train
May 17, 2013, 11:46 AM
Intel-Based Lenovo Yoga 11 Lands, is $240 USD More Expensive Than ARM Version
May 17, 2013, 11:02 AM
Most Popular Articles
Windows 8.1 Will Be Free; Microsoft Holds Onto Struggling ARM Variant
May 14, 2013, 2:57 PM
Google Announces "Pure" Galaxy Nexus S4 for $649, Android Updates
May 15, 2013, 1:42 PM
Bill Gates Gets Teary-Eyed While Discussing Steve Jobs, Shows Off Life-Saving Tech on 60 Minutes
May 13, 2013, 12:30 PM
U.S. Federal Traffic Board Wants to Make Drunk Driving Threshold Far Harsher
May 15, 2013, 11:32 AM
Google's Eric Schmidt: "Don't Be Evil" was Stupid
May 14, 2013, 11:00 AM
Latest Blog Posts
Quick Note: Sony "Teases" PS4 Ahead of Xbox Reveal in New Video
May 20, 2013, 12:33 PM
Nokia Introduces Instagram-Like App of Its Own to Help Lumia Sales
May 20, 2013, 7:10 AM
Parents of Pre-Teen Drivers Commonly Practice Distracted Driving Says Study
May 9, 2013, 7:16 AM
Apple's iOS 7 Running Into Internal Delays Due to Massive Overhaul
May 1, 2013, 4:26 PM
Elon Musk Willing to Spend More Money on Widening of 405 Freeway
Apr 26, 2013, 7:28 PM
More Blog Posts
Copyright 2013 DailyTech LLC. -
Terms, Conditions & Privacy Information