Wal-Mart Stores has updated its roadmap for the
company's rollout of RFID technology and discussed its revised
expectations for suppliers working to meet a January 2005 deadline
set last year.
The retailer will meet with its top 100 suppliers next month to
share what it has learned and refine the rollout process for its
next 200 suppliers.
After going live with its top 100 suppliers - and an additional
37 volunteers - in January, Wal-Mart will continue its domestic
expansion, with all domestic suppliers expected to participate by
the end of 2006. The retailer will also be evaluating an
international rollout.
Wal-Mart has challenged its top suppliers to tag all of the
product cases and pallets they ship to its three Dallas/Fort
Worth-area distribution centres by January and to ensure that the
tags can be read with a 100% accuracy rate.
While the goal remains unchanged, Wal-Mart now expected that, on
average, suppliers will be tagging 65% of the product cases and
pallets they send to those three distribution centres in January,
according to Linda Dillman, executive vice president and chief
information offficer at Wal-Mart, although she admitted that figure
could change.
Spokesman Gus Whitcomb said the 65% figure figure is based on
feedback from suppliers.
Wal-Mart "never expected in reality 100%", but it set the goal
to "shoot for 100" for everyone, including its internal team, and
directed suppliers to "tell us what you can do", Dillman said.
"That way we know what's really possible. We don't want to be
the ones limiting what those suppliers can do," she added.
Dillman said that Wal-Mart is expecting a "best effort" from
each supplier and that compliance will be considered on an
"individualised" basis.
Michael Duke, president and chief executive officer of Wal-Mart
Stores Division, said he was "very passionate" about RFID, noting
that barcodes transformed the way business is done, and RFID
presents an even greater opportunity.
He stressed that Wal-Mart has no plans to slow the deployment of
RFID. "We're full speed ahead," he said, adding that he has been
pleased with the progress to date. Duke added that only two
suppliers have said they need more time to meet the January
date.
Wal-Mart is conducting a pilot with eight major suppliers at one
regional distribution centre and seven stores in Texas. Duke urged
other companies to start working with cases and pallets today.
"You don't want to be the last one in," he said.
Although the price of the RFID tags has been a concern for many
suppliers, Duke said the cost has plummeted in the past year and is
expected to hit five cents in the US by the end of 2006.
Carol Sliwa writes for Computerworld