The world's largest retailer, Wal-Mart Stores Inc., Bentonville, Ark., has told its top 100 suppliers they must begin using electronic radio frequency identification (RFID) tags on goods by Jan. 25, 2005. To further the cause, the retailer says that cases of product shipped through the supply chain must
also be equipped with RFID systems by 2006.
Wal-Mart, though satisfied with the current smooth operation of its 160 distribution centers and more than 3,000 stores, believes an RFID system will improve supply-chain quickness and efficiencies by eliminating manual labor and reducing human error.
The company's suppliers must now hurry to meet the tight deadline, the impact of which is uncertain. The move will no doubt urge Wal-Mart's competitors to look into the RFID craze, for fear the retail giant might get too far ahead of the pack.