Walmart Rfid Case Study

RFID improves the efficiency of stores like Wal-Mart because it improves the efficiency of its global supply chain management by increasing the supply chain visibility and increasing the accuracy of the ordering process. WaLMart is able to increase its efficiency by decreasing the cost associated with inventory and handling procedures. With RFID technology, organizations like WalMart improve their ordering and sales procedures along with delivery and handling of raw materials and finished goods. Because the supply chain management is so important to the success of an organization, RFID technology helps eliminate procedural and information bottlenecks that decrease the efficiency of these departments. RFID can give an organization the tools it needs to process locally, nationally and globally from a single location. It minimizes the risk of data being entered into the system incorrectly and minimizes delays caused by human error in the supply chain management system.

WalMart and other large organizations attract customers because of its large inventory of consumer goods available to customers at low cost. In order to keep those cost low, theses organizations must ensure that suppliers keep cost low which in turn is passed onto the consumer. As organizations grow, the ability to manage inventory and supply chains become increasingly difficult and more mistakes are likely to happen if RFID technology is not used.

Of course, technology does not come without its price. RFID technology can be expensive to implement and may not be suitable for all businesses. The cost of implementing such system needs to be examined carefully with all the pro’s and con’s evaluated. Third party logistics is a technique of outsourcing logistic operations to third party companies to avoid the hassle of maintaining a supply chain infrastructure. Small businesses that cannot afford such a large infrastructure may find it more appealing to utilize 3PL providers in its distribution and shipping needs. Another option is to outsource the procurement, storage, distribution and processing to other organizations. 4PL provides advantages