Wal-Mart has given out a status update on its RFID project.
Researchers at the University of Arkansas found a 16 percent reduction in out-of-stocks. Additionally, the study also showed that out-of-stock items with EPC (Electronic Product Code) tags were replenished three times faster than comparable items using standard barcode technology. Equally important, Wal-Mart experienced a meaningful reduction in manual orders resulting in a reduction of excess inventory.
“This is no longer a take-it-on-faith initiative,” said Linda Dillman, executive vice president and CIO for Wal-Mart. “This study provides conclusive evidence that EPCs increase how often we put products in the hands of customers who want to buy them, making it a win for shoppers, suppliers and retailers.”
The 29-week study analyzed out-of-stock merchandise at 12 pilot stores equipped with RFID technology and 12 control stores without the technology.
In addition, Target and Wal-Mart are sharing.
Target and Wal-Mart, two of the largest retailers in the United States, are sharing Electronic Product Code (EPC) data with 13 manufacturers as part of a pilot. The data is being transmitted in a standardized format via an Internet-based electronic data interchange called applicability statement 2 (AS2). The manufacturers have requested anonymity, but they include some of the largest consumer packaged goods (CPG) manufacturers supplying Wal-Mart and Target.
UPDATE: Here's an article (and another) about the University of Arkansas RFID Research Laboratory.
Posted by Kevin on October, 17 2005 at 09:11 AM
