Walmart RFID: Dillman Testimony

From The Committee on Energy and Commerce ...

... "Wal-Mart was the first retailer to join MIT's AUTO-ID Center in 1999. We, along with others, funded research on the potential of using RFID in the retail and consumer packaged goods sector. We began testing in 2000 and after reviewing the state of this technology in 2001, we created our own RFID lab in Rogers, Arkansas. We did our own research in addition to supporting the AUTO-ID Center. We consulted with experts. We reviewed RFID uses already in place. We did all of this to determine whether this technology could help us solve the merchandise availability issue. We recognized after reviewing RFID that it had the potential to significantly help reduce out-of-stock conditions through the introduction of what has now become known as an Electronic Product Code or EPC. In June 2003, convinced that it could, we challenged our top 100 suppliers -- representing some of the most innovative companies in America -- to begin using RFID tags on cases and pallets of products destined for our three North Texas distribution centers by January 2005. These distribution centers ship products to 150 of approximately 3500 Wal-Mart stores. It is important to note that we chose to focus on case- and pallet-level tagging. We did not, and are not, requesting item-level tagging. We believe this challenge not only set direction for a new era in merchandise availability but also spawned a new market for technology companies, both those long established and others in their infancy, to be at the forefront of this revolutionary effort. Since Wal-Mart announced its EPC goals, other retailers, such as Albertsons and Target, have announced similar projects as well. The U. S. Department of Defense has also announced a similar RFID initiative. On April 30, 2004, Wal-Mart moved EPCs from the laboratory environment to an actual field pilot program" ...