The reliance of businesses on information communication and technology (ICT) and the internet of things (IoT) is increasing day by day, for enterprises in general and retail chains in particular. Walgreens Co., the second-largest pharmacy chain in the US and spanning over 9000+ retail stores, has a very progressive outlook in adapting technology. Walgreens has transformed the business process and operations with the use of RFID frameworks, thus creating great value in terms of growth, efficiency, and expansion.
Walgreens & Use-cases of RFID Technology
Walgreens has employed RFID technology in a multi-faceted manner, with the aim of delivering value to the customer while ensuring better revenues. It has deployed the passive RFID tags across its supply chain to get the real-time tracking of shipments; not only to the container level but the individual bottles and cases have also been marked to ensure authenticity and genuineness. Additionally, an RFID-powered framework is in place which automatically places the order with the requisite quantities when the minimum stock level is hit i.e., when the products (marked with RFID tags) leave the warehouse, a notification for the new order is automatically sent to the associated vendor or supplier.
An interesting dimension of Walgreen’s use of RFID technology is advertising; 9000+ retails outlets provide a great room for in-house display screens vis-a-vis promoting multiple products but timely execution of campaigns at such a great scale is a tricky task. When not performed promptly, such promotions can’t yield the desired results. Walgreens marked all the in-store displays with RFID readers and tags to get real-time information on which stores are performing alright in terms of getting the displays up and running on time.
Walgreen’s use of RFID – Impact on Business
With an organization’s operations scaling equivalent to that of Walgreens, one can always expect the probability of fake or sub-standard products being added into the supply chain. RFID technology can make tracking the tagged subjects very easy; marking done till the level of individual bottles and cans eliminates the chances of adding ulterior products into the supply chain by any of the stakeholders. It also helps identify the delays in the shipments and rectification of problems can be done in due time to avoid any further disturbance into the organization’s value chain. With RFID incorporated into the ordering mechanism, Walgreens has significantly reduced its holding and ordering costs thus providing higher rate of returns.
As the in-store displays become RFID tagged at Walgreens, a central view of the execution of campaigns is created thus increased visibility, transparency, and accountability are ensured. It also provides actionable insights into what works and what doesn’t (in terms of products being displayed, geography, and placement layout of the display screens) which can certainly be acted upon to further optimize the marketing and advertising expenses (rather an investment!)
The use of RFID in the supply chain & logistics, as well as advertising, has transformed the revenue and cost numbers for Walgreens Co. Not only has it streamlined the processes, but also has brought a lot of transparency into the system which certainly has helped quite a great deal in the business expansion. The great success of Walgreen’s implementation of RFID technology has paved the path for the use of RFID in other business domains, not only at Walgreens but for other retail chains as well, to ensure business development and sustainably.
