Global & Technological Environment Trends: Wal-Mart

Topics: RFID, Supply chain management, Wal-Mart Pages: 1 (283 words) Published: September 23, 2007

The Radio Frequency Identification, a short range communication technology, profoundly has impacted businesses. It helps companies track and control goods as they move through the supply chain. It can improve operational efficiencies and customer service while providing new business opportunities. However, like many other new technologies, RFDI also brings some concerns for people as well as benefits. For this assignment, I will focus on this technology trends on Wal-Mart Wal-Mart is one of those companies who rely on RFID to manage inventory more efficiently, reduce numbers of data entry errors, and lower human labor costs in a distribution center. By using RFID, Wal-Mart can now cut the incidence of out-of-stock products while improving the efficiency of moving products from backrooms to store shelves. It helps Wal-Mart improve its shelf management, so it can make sure merchandise is available. As a result, Wal-Mart's sales increase. H. Lee Scott stated that RFID is "a very important innovation," and the benefits will be seen over the long term." He said RFID ultimately will allow retailers and suppliers to drive costs out of the business and do a better job of keeping items in stock."

With such huge cost savings, competitors such as Target are doing the same thing. Target as well is using RFID technology to benefit from this huge cost savings. There are threats to RFDI technology associated with the fear in the consumers about privacy. For instance, RFDI is abled to identify customer when it returns to the store by clothing being used. With RFDI, Consumer's rights are not protected when information is exposed to an unauthorized user.
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