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Wal-Mart has decided to ratchet up the pressure on its 15,000 suppliers to comply with a 3-year-old inventory technology mandate. Beginning January 30, 2008, it will charge suppliers a $2 fee for each pallet without a RFID tag that is shipped to its Sam’s Club distribution center in Texas.

The strategy is simple, according to InformationWeek:

It seems focused on turning its 700-store Sam’s Club warehouse-outlet division into an example of RFID supply chain technology in action, down to requiring item-level RFID in 22 distribution centers by 2010. It makes sense: Sam’s Club has far fewer suppliers than Wal-Mart stores, and customers buy products by the case, the pallet, or individual packages that are larger … than what’s typically sold in retail stores.

Sam’s Club contributed $41.5 billion to Wal-Mart’s $344.9 billion in revenue for the fiscal year ending in 2007.

The pallet fee comes as a surprise to some suppliers, though companies that already conform to Wal-Mart’s RFID mandate are understandably smug about it. Some, like Daisy’s information systems manager, Kevin Brown, attest to the benefits of RFID.

Still, is it right for Wal-Mart to enforce such a mandate? Do you reckon that RFID is ready for the main-stream?

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Print/View all Posts Comments on this blog

Wal-Mart issues RFID mandate paulmah@... | 01/21/08
Is it right? - Edited Palmetto | 01/21/08
Because if you didn't... smee63 | 01/22/08
Doh!!! D'ya think??? sleepin'dawg | 01/22/08
Dern Tootin' Palmetto | 01/23/08
Wal Mart has the clout to do this royhayward@... | 01/21/08
It's a normal vendor / retailer relationship Neon Samurai | 01/21/08
Wal-Mart's Suppliers Have a Choice bperkins@... | 01/22/08
Bad business thinking... JCitizen | 01/22/08
This is turning into a Wal-Mart discussion kknepple@... | 01/24/08
True - I address the RFID issue elsewhere in the discussion.. JCitizen | 01/24/08
Not really highlander718 | 01/23/08
RFID and Walgreens crysmon@... | 01/22/08
Yes 1,000_naymes | 01/23/08
Yes. More Than Ready langmjm@... | 01/22/08
Yes, RFID is ready for the mainstream a_vagga@... | 01/22/08
walmart mandates rfid cpr | 01/22/08
RFID & Wal-Mart solomon568@... | 01/22/08
One question, please. Palmetto | 01/22/08
New World Order solomon568@... | 01/22/08
And all of this has WHAT to do with The Scummy One | 01/22/08
RFID solomon568@... | 01/22/08
yes, you do The Scummy One | 01/22/08
You tell'em ; I agree 100% ......(NT) JCitizen | 01/22/08
Oh, so it does mean cheap conspiracy teories ..EOM highlander718 | 01/23/08
Someone's been drinking to much Kool Aide mike@... | 01/22/08
a Strong USA solomon568@... | 01/22/08
You are all over the map The Scummy One | 01/22/08
I am an engineer and that stupid Rosie Blowdonnell cr@p.. JCitizen | 01/22/08
Caution Palmetto | 01/23/08
Empire State Building??? Drink the koolaide, it'll be alright mike@... | 01/23/08
I put Wally World and Unions in the same box.. JCitizen | 01/22/08
Caring for the consumer isn't their job. Palmetto | 01/23/08
If either of them don't provide value they should go away.. JCitizen | 01/23/08
Agreed, Palmetto | 01/23/08
One of the most irritating business practices WalMart.. JCitizen | 01/24/08
Interesting read. OnTheRopes | 01/23/08
Wal-Mart RFID mandate Larryonwine@... | 01/22/08
Big Brother??? mike@... | 01/22/08
Truthfully, I think Private Buisness is more big brother DanLM | 01/23/08
Wal Mart does have the largest Database in the world... mike@... | 01/23/08
Why would it be a problem? The Scummy One | 01/22/08
They are using the same theory as Credit Cards mike@... | 01/22/08
I agree The Scummy One | 01/22/08
other areas of improvement cpr | 01/23/08
different rfid likely The Scummy One | 01/23/08
More Unemployment due to more automation at the check out. cowen80194 | 01/23/08
Interesting. Palmetto | 01/23/08
Get educated... mike@... | 01/23/08
I can see it now... CheriS | 01/23/08
Wow, that would be cool The Scummy One | 01/23/08
Too bad I can't trust the ID theft risk of using RFID... JCitizen | 01/24/08
carrying rfid The Scummy One | 01/24/08
I was agreeing with you... mike@... | 01/23/08
If you want to do business with Wal-Mart Larry the Security Guy | 01/22/08
About that Wal-Mart RFID "mandate" CheriS | 01/22/08
Wal-Mart and its Consumer-Supplier Relationships stephenmoriarty@... | 01/23/08
While RFID tags are cheap Dr Dij | 01/23/08
Wallmart and RFID tags.. michael.burgess@... | 01/31/08
RE: Wal-Mart issues RFID mandate keith.f.shumaker@... | 01/21/08
keith, thanks for your post. Palmetto | 01/21/08
I really should not say but.... cowen80194 | 01/22/08
I avoid all things WallMart... JCitizen | 01/22/08
and that is very nice highlander718 | 01/23/08
Wal-mart doesn't destroy small businesses; consumers do Palmetto | 01/23/08
Wally has a bad habit of putting out shelves packed ... JCitizen | 01/23/08
RE: Wal-Mart issues RFID mandate journeyer58@... | 01/23/08

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