RFID reduces out-of-stock products at Wal-Mart stores January 24, 2006
Wal-Mart stores Inc. is starting to feel the benefits of radio frequency identification (RFID) technology with a 16% reduction in out-of-stock products at Wal-Mart and Sam’s Club stores. According to a study conducted by the University of Arkansas for Wal-Mart, the retail giant cut the number of product out-of-stocks by 16% in a 29-week period. Wal-Mart has enabled five Dallas-area distribution centers, almost 500 Wal-Mart and Sam’s Club stores as well as 140 suppliers to handle RFID-tagged shipments.
The ordering and receiving processes of RFID-tagged shipments have also improved threefold. Wal-Mart has started using RFID as a web-based system of tracking inventory throughout the supply chain. The company operates is system of RFID tags and readers on its corporate web-based Retail Link network.