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Wal*Mart continues push for RFID adoption
John3 writes "Wal*Mart is continuing to push for vendors to add RFID tags to cases of products for easier tracking through their warehouse distribution system. Most vendors have until 2006 to comply, but their top 100 suppliers must have the tags in place by 2005. Wal*Mart stopped their push for retail level tagging last summer, but by forcing tagging at the wholesale level the cost of the technology will drop as vendors comply with Wal*Mart's decree. How long before price is no longer a barrier to RFID item level tagging?"
You don't appear to have read the article, it's about tagging of wholesale cases for use in the whole inventory control/distribution system, not for the end-consumer.
This only helps Wal~Mart make their warehouses and backroom more streamlined.
I think they mean the pre-cursor to International Friend or Foe (IFF) technology used by planes in WWII. If i remember right, they started off with the same idea of using a passive inductive loop that would respond to a transmitter in the fighter.
There are things we know we don't know and things we don't know we don't know. - Donald Rumsfeld
As I understand it, current RFID solutions are based on small silicon chips - which are probably going to remain rather expensive, even in bulk (at least compared to a bar code). The real explosion of RFID will probably come with the commercialisation of any of the large-scale non-vacuum deposition semiconductor techniques - printable metals, organic polymer transistors etc.
Because this particular use of RFID's has nothing to do with your privacy, but RFID's as a whole do.
:)
Note the question asked at the end of the post:
"How long before price is no longer a barrier to RFID item level tagging?"
If this goes on then probably, eventually RFID's will replace barcodes.
Not that I think that's such a bad thing.
The path I walk alone is endlessly long.
30 minutes by bike, 15 by bus.
RFID has also been reviewed as tagging luggage on airports. It might be in use somewhere today, but the one I know about, they discarded it because of the cost, not just to the airport in question but because all connecting airports had to have this system as well in order to get the most from it.
However, test done parallel to(/on top) the existing system locally showed that it could speed up the processing because the tag was read everytime the barcode scanners failed to locate the paper strip, and the need for manuel handeling would have been deduced to items that had lost their tag underway.
We're playing with RFID in my lab, and from our initial feeling with it the wall through the rfid scanner will probably involve queues of people still. Since only one person can be read at a time. Think of the RFID highway toll plazas (Trust me I'm really familure with toll plazas I'm in NJ after all :-/) with heavy use you still get queue, also you need to gareente that all tags in your cart have been read. When tags are returned from a reader lists all tags and if you fire the reader again you'll get the same list.
:-)
Add to this that RFID can be blocked by tin foil and we have a whole slew of new problems for shoplifting. It's not so easy
Just because walmart prices are lower doesn't mean they are making less money on each item. They are such a powerhouse that they actually dictate to there suppliers what they are willing to pay for the merchandise. Your local department store will pay more for the product so it must sell it at a higher price. Walmart's major advantage is it's supply chain. If a supplier doesn't agree with walmart on thing such as pricing, merchandising or anyother aspect of buisness walmart just pulls their product or buries it on some obscure shelf.
here's one simple kit with a reader and some rfid tags to experiment with. One of those 'contact us for price' deals. I'm suprised nutsvolts.com or circuitcellar.com hasn't had hobbyist/experimenters articles about RFID yet.
try { do() || do_not(); } catch (JediException err) { yoda(err); }
Wal-mart is one of our bigger customers, and they originally has us slated to be an early adopter of RFID in the case.
We were supposed to be working on this in 2004, however they pushed out implementation out to beyond 2006. As far as I know they didn't say why either.
All I know is that we're not slated to be doing anything with RFID anytime in the near future, and just six months ago we were planning on gearing up to implement across our entire supply chain.
That's $0.30 - $0.40 per CASE, not per item.
It's for warehouse inventory tracking, not shelf stocking.
You'd think people would at least read the article summary.
"Wal*Mart is continuing to push for vendors to add RFID tags to cases of products for easier tracking through their warehouse distribution system. Most vendors have until 2006 to comply, but their top 100 suppliers must have the tags in place by 2005.
While your comment is insightful, you are forgetting about the rest of the equation - WalMart's customers.
When I go to WalMart, I evaluate in my own mind what quality I want and what price I will pay. If the quality is poor, I don't buy. If the price is high, I don't buy.
WalMart is smart enough to recognize when items stop selling and respond sooner or later. Companies that can't afford to lose the "WalMart Contract" should rethink thier business...
You have to be pretty close to the tag to read it. The walmart folks have large tags (4" to 6") on their boxes. The larger the tag, the further away it can be read. The distance of reading is a function of tag size and power.
So, unless they get super powerful readers, they won't be able to tell that you have a pair of granny underwear at home. (900mhz readers have their own problems, especially in countries other than the US) If you don't like the tag, cut it up. I really don't see the big deal with this. Can a tinfoil hat person explain to me why this is such a bad thing?
If RFID were such a golden opportunity for ROI, they'd already be doing it.
Who modded this up? That's like someone in 1980 saying that if Computers were so great, everyone would have them.
It takes time for technology to be broadly addopted, particularly if the gov't doesn't mandate it.
-- You see, there would be these conclusions that you could jump to
You see... I own stock in WalMart. I've owned stock in Walmart since 1988.
Seriously? Holy crap. I'm especially looking at the three splits... Can I have some money? =p
The UPC number still could be placed on the labels without a bar code, or maybe they'll still spend the square inch of the label on the barcode even if it's rarely used.
a sick child that needs a vital operation is a sick child that needs a vital operation
Federal law prohibits withholding vital services from anyone unable to pay, so don't even try this line.
just because you haven't ended up working for an uncaring employer like Walmart
What is this "uncaring employer" nonsense??? This company has NOT ONLY subsidized health care but also PROFIT SHARING for even part time employees! There is NO LAW requiring EITHER of these but this company DOES IT ANYWAY. Yet you're bashing them just because it's a big company and they don't GIVE AWAY even more "free" benefits!
From Walmart's website:
HEALTH BENEFITS
Our health plan covers most major medical expenses. The company contributes to the cost of health benefits and we offer affordable Associate plans. There is no limit for most health coverage. 60% of our Associates tell us they joined Wal-Mart because of our benefits. We also offer:
Dental Coverage, Company-Paid and/or Dependent & Optional Life Insurance, Business Travel Accident Insurance, Long- and Short-Term Disability, Illness Protection Plan
PROFIT SHARING
All Wal-Mart Associates become eligible to share in the company's profits through our Profit Sharing Program, after one year and 1,000 hours of service. This is funded entirely by Wal-Mart and is primarily invested in Wal-Mart stock. Both Full-Time and Part-Time Associates are eligible to share in Wal-Mart profits.Which part of subsidized health care and profit sharing just isn't enough? How much more handouts do you want?
From Walmart's audited 2003 annual report:
Income tax paid (Amounts in millions)$ 4,462
Since Medicare and Medicade made up 24% of the 2003 Federal budget, Walmart paid for just over $1 billion toward these programs. Please see your would-be snipe about needing, but not affording, vital operations.
Enough socialist ranting from you, please!