Market News

Wal-Mart Confirms Impact of EPC/RFID

Wal-Mart has confirmed that electronic product code (EPC)/radio frequency identification (RFID) technology has had a significant impact in reducing out-of-stocks. A recent University of Arkansas study concluded that Wal-Mart customers could find items they wanted in stock more often thanks to the retailer’s cutting-edge technology. Wal-Mart is encouraging its suppliers to adopt EPCglobal's recently ratified Gen2 global standard. Doing so on a widespread scale, says the retailer, would drive faster reduction in the technology’s cost, and would lead to acceleration in adoption. The 29-week Arkansas study, which was the first to compare the impact of EPCs on merchandise availability in functioning stores, also showed that out-of-stock items with EPCs were replenished three times faster than comparable items using standard bar-code technology. Wal-Mart also experienced a meaningful reduction in manual orders resulting in a reduction of excess inventory. The giant retailer is executing its rollout plan to bring additional stores, clubs and distribution centres online, both through this year and next. Source: Canadian Grocer E-Newsletter, October 21,2005.