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Wal-Mart’s RFID apparel deployment could
push global acceptance for item-level tagging
full article
It's not often that RFID ends up on the front page of the Wall Street Journal. But it's not often that the world's largest retailer goes public with its technology plans either. Wal-Mart used to be quoted widely about its plans for RFID in the supply chain. Then a light bulb went off; the retailer realized that RFID is far more valuable at the store level, and on specific items.
And while Friday's article in the Journal wasn’t exactly breaking news, it did cement the fact that Wal-Mart is pursuing item-level tagging for certain lines of men's jeans and underwear. Industry experts predict that Wal-Mart will consume 30 million tags over the next 12 months just on those lines. If the launch is expanded, and it likely will when Wal-Mart sees the proper business value, the retailer's use of RFID could explode and catapult item-level tagging to global acceptance. Down the road, it's entirely possible that Wal-Mart could use hundreds of millions of tags while not even approaching a full apparel rollout.
"This is the beginning of the whole retail item-level tracking thing in the big world," says Drew Nathanson, senior RFID analyst and director of research operations at VDC Research Group, Inc., who says that retailers will use more than 800 million RFID tags in 2011.
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RFID got a major boost on Friday when the New York Times profiled Wal-Mart’s move to use item-level tags on apparel goods, starting with jeans and underwear.
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The two firms will provide end-to-end RFID solutions for the purpose of MRO, aircraft and component, data identification, tracking, enhanced line maintenance and performance based utilization.
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The RFID system has been in place for approximately 12 months at four warehouse locations, saving the online retailer over 1,500 labor hours.
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Adoption is being spurred by the significant improvements RFID item-level tagging makes to retail operations with inventory accuracy increasing up to 99 percent.
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The market for RFID tags and systems in healthcare will rise rapidly from $120.9 million in 2008, mostly do to item-level tagging of drugs and RTLS systems for staff, patients and assets.
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The producer of juice-based drinks in North America and Western Europe looks to boost sustainability efforts as the lighter weight of iGPS' pallet reduces fuel use and greenhouse gas emissions.
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High temperature, high-pressure tag revolutionizes asset tracking in downhole
and subsea oil and gas operations, surviving sustained extreme conditions up
to 200C (400F).
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From the Editor |
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Don't forget to read the RFID 24-7 blog for updates. Also, be sure to follow RFID 24-7 on Twitter @johnrfid247 and on Facebook.
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About the Editor
John R. Johnson is a veteran business and technology journalist with over 20 years of experience covering RFID technology, smart grid and supply chain topics. He is the former editor of RFIDWatch Weekly and DC Velocity magazine.
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