RFID (Radio-Frequency Identification) has gained quite a lot of popularity since its introduction. Many industries including retailers and store-owners, adopted RFID technology to monitor and run their entire process of delivering their products to the customers. One such example of early RFID adoption in the supply chain and retail market is Walmart.
When Walmart Introduced RFID To the World
Walmart first adopted RFID technology in 2003, at a time when not many people knew what this technology was and what it offered. Walmart made it compulsory for its top 100 suppliers to attach RFID tags to the products they will send in their upcoming shipment. This meant that either Walmart or the supplier had to buy RFID tags for each and every product that was to be sold. The price of tags 17 years ago was not as insignificant as it is today, hence it affected the overall cost of each product. Increasing costs was not a feasible idea, and it received a lot of criticism as well.
Walmart was the only store that had introduced RFID in the supply chain at a time when the world was not ready for it. However, after some years, RFID gained popularity, and other stores began to adopt it as well. By this time, Walmart was already tracking most of its products’ journey from the supplier to the distribution center, and then to their retail stores.
Why Did Walmart Choose RFID Technology?
So, why did Walmart move towards RFID tags when they had the option of using barcodes? Well, barcodes do not store as much information as RFID tags do. Moreover, when scanning barcodes, line-of-sight communication is necessary, but RFID tags do not have such requirements. You can scan a pile of jeans having RFID tags, without the need of unfolding them and placing the tag right in front of the scanner.
Another reason why RFID tags are better than barcodes is because of their range. To scan a barcode, you need to place the scanner close to the product. However, RFID tags can be scanned from a distance of about 1 meter.
RFID offers real-time information transfer about products in-stock. This proves beneficial for the store’s inventory management and online customers. People who visit Walmart’s online store can see how many items are available for delivery; hence this saves them from the disappointment of receiving a call from a customer service representative who tells them about their ordered product being out of stock.
The introduction of RFID has also helped Walmart cut down their operational costs because previously, it required a large number of manpower to count the number of products present in the inventory and maintain its record. With RFID technology, Walmart workers do not have to worry about updating the inventory database. Rather, they can focus on other job duties and work towards satisfying their customers better.
RFID allows companies such as Walmart to run a smooth and transparent supply chain process, which is less erroneous and much faster than the traditional methods.
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Other related articles:
→ Walmart RFID Mandate: What Suppliers Need To Know
→ Walmart RFID Label: From Idea To Reality
→ What If Your Walmart RFID Tags Do Not Meet Requirements?
→ How Does Scanner Help Inventory Associate Walmart RFID?
