Wal-Mart Grapples with Rfid

Case Study

Wal-Mart Grapples With RFID

May 16, 2008

The initial asks how RFID is related to Wal-Mart's business design. No perception is given inside the text as to what that business structure is. In my opinion the answer may be summed in their slogan " constantly the low price”. Wal-Mart is very huge that they dictate to their suppliers how a supplier is going to run their particular businesses and what Wal-Mart will be charged. For more insight on Wal-Mart and how they do business observe " The Wal-Mart An individual Know” in. http://www.fastcompany.com/magazine/77/walmart.html

The situation study shows that the largest reason Wal-Mart wants RFID tags is to insure that merchandise can be on the retail outlet shelf instead of the storeroom at the back of the store. Wal-Mart already insists merchandise is usually delivered to shops on time, every time. Suppliers will be benefited in case their product is available for sale when a client wants this. Suppliers are certainly not benefited when a tag costs 40 to 50 mere cents each and Wal-Mart expects the vendor to soak up the cost. My spouse and i don't think suppliers are benefited, just another expense of doing business with Wal-Mart.

Wal-Mart suppliers experienced several concerns implementing the RFID systems. First was cost, as mentioned above. Next, the tags would not work well with all merchandise. Certain liquids, alloys and porous material disrupts the radio ocean. Being new-technology, standards never have been crafted and tools to use the tags has not been fully created. Suppliers' biggest problem was Wal-Mart alone demanding the technology be used, even though it was yet to become proven reliable.

Suppliers will be able to make use of the tags better if price, consistent standards and the trustworthiness of the tags themselves increase.

The articles sited for the case study where written in 2004 through 2006. In the time writing the situation study five-hundred stores got equipment to see the tags and five-hundred more where slated to have the equipment. It seems Wal-Mart...

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