RFID Technology – Is it important?

“Wal-Mart has decided to ratchet up the pressure on its 15,000 suppliers to comply with a 3-year-old inventory technology mandate. Beginning January 30, 2008, it will charge suppliers a $2 fee for each pallet without a RFID tag that is shipped to its Sam’s Club distribution centre in Texas……..”

“Wal-Mart called the meeting to inform its top 100 suppliers—representatives from about 120 top companies came—about what exactly would be required of them regarding the RFID Mandate starting 2005.

Wal-Mart wants to be able to read 100 percent of the pallet tags coming through its dock doors. It doesn’t expect to be able to read 100 percent of cases coming through a dock door, but it will require that for hand scanning. And it expects all tags to be read without slowing down the existing process.

“Wal-Mart is saying to CPG companies and RFID vendors, here’s the bar; see if you can meet and exceed this,” says Jonathan Loretto, global lead for RFID at Cap Gemini Ernst & Young. “It’s achievable. Whether it's achievable in the next 12 months, only time will tell……..”