in its 12 RFID-enabled stores from February 05 to September 05 ...
... and also achieves a quicker self replenishment of the RFID tagged items compared to usual bar coded items, according to a study published by the University of Arkansas.
RFID implementation gave an opportunity to Wal-Mart to enhance its shelf stock process management. Wal-Mart no longer inspects manually stock levels in stores or back-rooms; the number one retailer now cross-references its point-of sale data with the data collected by the different readers located along the internal supply chain of the store (loading dock, door between back-room and store, and box crusher for empty cases).
The output is a list of out-of-stock items generated automatically. In the short term those auto-generated pick lists identify more low-stock items than Wal-Mart associates see. In the long term the number of low-stock items drops as the stock-keeping units (SKUs) are better-stocked on a regular basis.
If the 16% reduction of out-of stock SKUs is the first advantage of RFID technology at Wal-Mart, a subsequent one is the time saved by Wal-Mart associates who no longer need to scan empty shelves manually to generate pick lists. However the report did not study time reductions and no evidence were reported.
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To read further about this 29-week study by the University of Arkansas, download the report.
Does RFID reduce out of stocks
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Thursday 16th March 2006.
