Since its successful deployment of RFID technology to improve inventory accuracy of apparel, Walmart continues to expand the scope of its RFID tagging requirements to additional merchandise categories impacting many more retailer suppliers.
What is the RFID Walmart Mandate
Radio Frequency Identification (RFID) is a wireless technology that uses radio waves to identify, track, and manage items. The RFID Walmart Mandate is Walmart’s requirement for its suppliers to adopt RFID technology for tracking their products within the stores. This mandate aims to revolutionize inventory management, reduce stockouts, and improve overall operational efficiency.
Key elements of the RFID Walmart Mandate
- Tagging requirement: Suppliers are required to attach RFID tags to each individual product. These tags contain unique identifiers and essential information about the product.
- Data sharing: Suppliers must provide accurate and up-to-date data related to the product. This ensures that Walmart has real-time visibility into inventory levels.
- ARC Certification: Suppliers are required to obtain ARC certification for their used RFID tags. This certification ensures that the RFID systems used by suppliers meet Walmart’s standards for accuracy and performance.
- Compliance deadline: The mandate has been implemented in phases, with different compliance deadlines for suppliers based on suppliers’ product categories.
Benefits of the RFID Walmart Mandate
- Reduced out-of-stock: RFID technology helps identify and restock products quickly, reducing instances of empty shelves and improving customer satisfaction.
- Improved inventory management: Real-time tracking allows for more precise inventory control, reducing excess inventory carrying costs and waste.
- Enhanced customer experience: Customers can find the products they want when they want them, leading to higher customer loyalty and increased sales.
- Improved supply chain efficiency: Suppliers and retailers gain better visibility into the movement of products, facilitating faster response times to market demands.
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