Wal-Mart Sets Model for Rfid Hardware and Software Systems

Topics: Supply chain management, Electronic Product Code, Inventory Pages: 2 (580 words) Published: January 10, 2011
The retail giant Wal-Mart is based in Bentonville, Arkansas and it was founded by the late Sam Walton (1918 – 1992). In the mid 60s Sam Walton was looking at technology to use IBM mainframes to store inventory data (Wallgum, p.1, 2010). “Wal-Mart Stores Inc. built an inventory and supply chain management system that changed the face of business” (Helen, p. 38, 2002). Beginning his career in the mid 40s Sam Walton knew the importance of meeting customer’s needs and this ideology remains today. According to Berman, “Wal-Mart Senior Vice President of International Supply Chain Gary Maxwell said that understanding the customer needs is the key to designing a fluid global operation” (Berman, p. 38, 2009). In 1975, to maintain inventory control in the warehouse and distribution centers, Wal-Mart leased an IBM 370/135 system and with the use of accounting software and was able to prepare income statements for each retail location (Wallgum, p. 1, 2010). “Diversity in supply chain networks and evaluating supply chains based on the needs of a particular geographic market are major drivers when developing an international supply chain” (Berman, p. 18, 2009). In 2003 Wal-Mart began utilizing an Electronic Product Code (EPC) to track pallets and cases in their warehouses and was capable of reading 100% of their palettes as they came through their warehouse doors with the use of a 96-bit EPC with a Global Trade Identification Number (Roberti, p.1, 2010). According to Roberti’s (2010) article the retail giant has shifted from tagging pallets and cases and have focused on tagging items with EOC. Items are put in categories beginning with men’s jean, socks, underwear, and other basics. “Items will be tracked using radio frequency identification tags based on EPC global's second-generation ultrahigh-frequency (UHF) RFID standard and carrying Electronic Product Codes (EPCs). This effort is part of the next stage of Wal-Mart's EPC RFID program, which will concentrate on the types...

References: Berman, Jeff. (2009). Walmart 's Maxwell cites keys to developing best-in-market global supply chains. Logistics Management [Highlands Ranch, Co.] 48.10 (2009). 18. Retrieved 7 Oct. 2010 from Academic OneFile. Web.
Helen, Amy J. (2002). 35 years of IT leadership: A new supply chain forged. Computerworld, 36(40), 38. Retrieved 7 Oct. 2010 from ProQuest: ProQuest Computing database.
Roberti, Mark. (2010). Wal-Mart Relaunches EPC RFID Effort, Starting With Men 's Jeans and Basics. RFID Journa. July 23, 2010;. Retrieved 7 Oct. 2010 from http://www.rfidjournal.com/article/view/7753.
Wallgum, Thomas. (2006). 45 years of Wal-Mart History: A technology time line. Academy of information & Management; Science Journal, 2006, CIO reporting; Walmart.com. Retrieved 7 Oct 2010 from http://www.cio.com/article/147005/45_Years_of_Wal_Mart_History_A_Technology_Time_Line.
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