Wal-Mart's RFID project struggles.(PILOT PROGRAM)

Official Board Markets, February, 2007

Wal-Mart Stores' pilot program for tracking inventory through radio frequency identification (RFID) has been struggling, The Wall Street Journal reported recently.

Three years ago the retail giant began mandating some of its supplier shipments use RFID tags to cut labor and inventory costs.

So far 600 of Wal-Mart's largest suppliers have affixed the smart tags to cases and pallets sent to the company's test states: Texas and Oklahoma.

Savings have been hard to come by, the Journal states. Some suppliers arc saying they don't expect any return on their RFID investments for years, if at all. In addition, RFID costs are troublesome. The tags are about 15 cents each while barcodes cost less than a penny.

Finally, suppliers say...

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