Rfid in Scm - Walmart Proponent of Technology

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Wal-Mart is a Leading Proponent of RFID use in Supply Chain Management Abstract Businesses look for ways to improve their Supply Chain Management (SCM). The radio frequency identification (RFID) technology has gained increased interest from businesses in recent years. An innovation developed from WWII radar technology, RFID offers the ability for businesses to increase their logistics in regards to accurate inventory accountability. Wal-Mart, the US retail giant, led the industry in the implementation of RFID in 2003 requiring its suppliers to employee this technology. As a front runner of this technology, Wal-Mart has recognized how the RFID enabling technology increases retailer’s logistical mission of right product at the right place and time, thus improving SCM efficiency; and increasing sales and profits. Supply Chain Management (SCM) is the logistical management of assets, information, and capital in their movement in a supply chain process between suppliers, manufacturers, wholesalers, retailers and, ultimately, to the consumer. Businesses look for innovations and advancements in Automatic Identification and Data Capture / Collection (AIDC) techniques and products to enhance their SCM logistical systems and processes. Radio Frequency Identification (RFID) technology is an AIDC technique that has attracted significant interest from companies over the past eight years. Considered as “the next big thing for management” (Wyld, 2006), RFID enables business information gathering throughout a company’s value SCM chain to provide critical information for speedy and accurate decision-making. Research has shown that with the ability to store more information than barcode labels, RFID improves production processes, provides real-time movement of materials increasing production planning and product placement efficiency. Research

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