Wal-Mart begins first phase of RFID implementations

Wal-Mart and eight product manufacturers have started testing
electronic product codes, or EPCs, at select Supercenters and one regional
distribution center in the Dallas/Fort Worth metroplex.

"This pilot is the next step in Wal-Mart’s addition of
radio frequency identification, also known as RFID, to improve product
availability for Wal-Mart customers. The real-world trial follows extensive
testing at the company’s RFID lab and months of collaborative preparation by
Wal-Mart and its suppliers. Field equipment testing has been underway in Texas
since mid-month but nothing with an RFID tag was placed on store shelves.

"It is imperative that we have the merchandise the
customer wants to buy when they want to buy it," says Linda Dillman,
Executive CP and CIO. "We believe RFID technology is going to help us do
that more often and more efficiently. This will help us increase customer
satisfaction in the near-term and ultimately play an important role in helping
us control costs and continue offering low prices."

Wal-Mart has set a January 2005 target for its top 100
suppliers to be placing RFID tags on cases and pallets destined for Wal-Mart
stores and SAM’S CLUB locations in the Dallas/Fort Worth metroplex area. Since
announcing that initiative nearly a year ago, 37 additional suppliers have
voluntarily chosen to meet that same milestone.

CI NEWS BUREAU