Wal-Mart extends rollout
products code (EPC) initiative to more stores and more suppliers,
announcing a timetable this week which will see the radio frequency
identification (RFID) tags in an increasing number of warehouses
and stores (and on more products than ever) over the next 16
months.
The RFID technology allows retailers greater visibility in monitoring product inventory from supplier to distribution centre to store.
"We have discussed implementation plans with our next top 200 suppliers," said Linda Dillman, executive vice president and CIO for Wal-Mart Stores. "Over the next 16 months, we also plan to significantly increase the number of Wal-Mart stores and Sam's Clubs locations where customers can benefit from this revolutionary technology."
Wal-Mart initially announced its EPC initiative in June 2003. At the time, the company stated that the first phase of implementation would involve its top 100 suppliers tagging cases and pallets of products headed to three Dallas/Fort Worth area distribution centres by January 2005. Since then, an additional 37 suppliers have voluntarily asked to meet that same milestone.
But now the chain has announce further milestones in the EPC rollout. By June 2005, for example, the system should by live in up to six distribution centres and up to 250 Wal-Mart stores and Sam's Club locations, rising to 1e centres and 600 stores by October 2005. Finally, the next wave of suppliers - some 200 this tiome - will be asked to switch to the RFID system by January 2006.
The retailer is currently working with suppliers to determine in which geographical region the expanded EPC implementation will occur.
The primary consumer benefit expected during initial EPC adoption is better merchandise availability, and Wal-Mart said it hoped to do a better job of having the right product in the right place at the right time, improving the customer shopping experience.
So far, the experiences from the pilot scheme in Dallas have been very encouraging. "We're seeing the positive results we expected," Dillman said. "We also anticipated hitting a few minor bumps in the road, which has happened. The whole reason for a pilot is to fix any last minute issues and clear the path for a smooth implementation. That's what we're doing and we're looking forward to January 2005 with great expectations."
From now on, Wal-Mart expects the number of suppliers tagging cases and pallets for the pilot to expand every few weeks, and consumers are therefore likely to soon see additional products displaying the EPCglobal symbol.
It is expected that many of these will be electronic products or other large items such as bicycles or lawnmowers, rather than food products in the short team. In all instances, the cases will have tags only on the outermost packaging, Wal-Mart will notify consumers of the tag's existence and customers will retain the choice of keeping or disposing of the tag post-purchase.
