January 04, 2006
Wal-Mart pushes its not-so-eager suppliers
Wal-Mart has been pushing aggressively for RFID adoption. According to a report by AMR Research that was written in late 2004, the retailer has not received whole-hearted support from its vendors. Most of the vendors feel that the costs far outweigh any potential benefits and have fulfilled the minimum basic requirements only. This has resulted in RFID-tagging of select products and the deployment is mostly of the “slap and ship” kind. In a study published in 2004, A.T. Kearney stated that the cost of an RFID deployment in a distribution center for a large retailer would be around $ 400,000 and RFID-enabling a store would cost $ 100,000. nwaonline.net reports:
Some Wal-Mart suppliers are reportedly dragging their feet when it comes to getting with the retailer's radio frequency identification program, and now the company is laying down the law.
Read More: Wal-Mart Prods Suppliers On RFID
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