Walmart RFID: Linda Dillman Shares Status Update

Linda Dillman shares interim results on the Walmart RFID program ...

Walmart RFID: Linda Dillman Shares Status Update: Via WalMart Stores, Inc.: WalMart Improves On-Shelf Availability Through the Use of Electronic Product Codes

... "WalMart customers found items they wanted in stock more often due to the retailer's use of electronic product codes (EPCs) powered by radio frequency identification (RFID) technology when compared to control stores. This is according to an independent University of Arkansas study's initial findings. Researchers at the University of Arkansas found a 16 percent reduction in out-of-stocks. Additionally, the study also showed that out-of-stock items with EPCs were replenished three times faster than comparable items using standard bar code technology. Equally important, WalMart experienced a meaningful reduction in manual orders resulting in a reduction of excess inventory. This is no longer a take-it-on-faith initiative, said Linda Dillman, executive vice president and CIO for Wal-Mart. This study provides conclusive evidence that EPCs increase how often we put products in the hands of customers who want to buy them, making it a win for shoppers, suppliers and retailers. ...

As part of its standard processes, WalMart has focused on driving improved product availability for its customers through a series of initiatives unrelated to RFID technology. The research was structured to isolate the impact of RFID to be able show the improvements directly attributable to the RFID process improvements. The study showed RFID-enabled stores were 63 percent more effective in replenishing out-of-stocks than the control stores, Dillman said. The WalMart RFID team knew that this technology would have a huge impact on out-of-stocks. Now we have an independent study that confirms RFID has a significant impact in retailing, Dillman continued. However, we are not stopping there. This is only one of many changes that RFID will bring. We are already working on initiatives and enhancements that will build on this success. The 16 percent reduction in merchandise out-of-stocks was determined by physically scanning out-of-stocks at the shelf every day. A baseline was established and this was then compared to the number of out-of-stocks in both sets of stores once the RFID technology was enabled in the pilot stores, explained Hardgrave. The net result of the impact of RFID, removing any other influences, was a reduction of 16 percent in the occurrences of products being out-of-stock on the shelf. " ...

Walmart RFID Compliance Using SAP Netweaver Platform ...

Walmart RFID Compliance Using SAP Netweaver Platform: Via SAP: SAP RFID Rollout Signals Major Savings for Midsize Flag-Maker: Annin & Co. Gears up for Wal-Mart Requirement Within Three Months and Sets Cost-Cutting Course to Master Retail Market Challenges ...

SAP Netweaver Platform enables Walmart RFID Compliance for flag manufacturer ...

... "SAP AG (NYSE: SAP) today announced that Annin & Co., the world's oldest and largest flag manufacturer, has implemented the radio frequency identification (RFID) technology within the SAP NetWeaver platform to meet WalMart's RFID requirement for key vendors. Annin, a midsize enterprise that manufactures more than 10,000 different flags and flag accessories, implemented the pilot project within three months, which will allow the company to achieve Wal-Mart compliance by January 2006. Annin also anticipates that its investment in RFID technology from SAP will bring significant cost savings. The announcement was made at the EPCglobal U.S. Conference 2005, being held in Atlanta, Georgia, September 13 - 15. " ...

Annin & Co is the world’s oldest and largest flag manufacturer. Starting from a sail loft in downtown New York City making signal flags for sailing ships in the 1820’s, Annin incorporated in 1847 and has since grown to four manufacturing locations. Annin now has worldwide distribution. As the official flag manufacturer to the United Nations, Annin’s international flags are the standards for exactness, followed by the rest of the world.

WalMart RFID: 100Percent Readability

Wal-Mart Stores: Wal-Mart Begins Roll-Out Of Electronic Product Codes in Dallas/Fort Worth Area: Eight Manufacturers Participating in First Phase of Implementing Radio Frequency Identification (RFID) Technology at the Case and Pallet Level ...

... "Wal-Mart is targeting 100 percent readability of pallet tags through dock doors and 100 percent readability of case tags on distribution center conveyor belts. At seven pilot stores in the Dallas/Fort Worth metroplex - specifically in the communities of The Colony, Decatur, Denton, Hickory Creek, Lewisville and Plano, RFID readers at dock doors will replicate the process from the distribution center by automatically confirming that this particular shipment is now in the store's back room. Individual products will then be stocked as needed. During the initial test, tagged cases and pallets may be distributed to stores throughout North Texas and South Central Oklahoma - the geographical area served by the Sanger, Texas distribution center. As suppliers expand their efforts to meet the requirements of multiple retailers, it is possible that tagged cases and pallets will arrive at Wal-Mart stores around the country. However, readers will not be installed in stores outside the Dallas/Fort Worth metroplex so those cases and pallets would be handled as usual. " ...

RFID Walmart Compliance with SAP RFID Infrastructure ...

SAP - Pacific Cycle Seizes Business Process Gains from RFID Automation with SAP

SAP customer, Pacific Cycle, demonstrates Walmart RFID compliance with SAP RFID infrastructure powered by the Netweaver platform ...

... "SAP AG (NYSE: SAP) today announced that Pacific Cycle, a division of Dorel Industries (NASDAQ: DIIB; TSX: DII.MV; DII.SV), has successfully implemented SAP's leading radio frequency identification (RFID) capabilities within its SAP NetWeaver platform. With its go-live on March 31, 2005, the Madison, Wisconsin-based manufacturer of such name brand bicycles as Schwinn, GT, Roadmaster and Mongoose is now surpassing the Wal-Mart mandate, which requires the retailer's top 100 suppliers to tag pallets and cases shipping to select Wal-Mart distribution centers. The SAP technology is enabling Pacific Cycle to reap the business gains of an adaptive business network automating warehouse activities, creating newfound data transparency across the supply chain and helping ensure the right shipment to the right place at the right time. Pacific Cycle chose the SAP solution with the aim of reducing total cost of ownership by scaling its RFID pilot project targeting immediate benefits through supply chain automation and leveraging its existing SAP software investment for further gains across its global operations. The RFID capabilities of SAP NetWeaver contain several preconfigured components that help reduce implementation time while maximizing value, including SAP Auto-ID Infrastructure, a key component of the SAP NetWeaver platform, which controls the RFID process while simultaneously converting raw RFID data into actionable business information; " ...

Pacific Cycle is the leading supplier of quality bicycles in North America and a division of Dorel Industries Inc. The company designs, markets and imports a full range of bicycles and recreation products under the brand names of Schwinn, GT, Mongoose, Pacific, InSTEP, Pacific Outdoors, Roadmaster and Dyno. Pacific Cycle is headquartered in Madison, Wisconsin with offices in Olney, Illinois and Lake Forest, California. The company has distribution centers in Olney, Illinois, and Vacaville, California.

SAP is the world’s leading provider of business software solutions*. Today, more than 27,000 customers in over 120 countries run more than 91,500 installations of SAP® software—from distinct solutions addressing the needs of small and midsize businesses to enterprise-scale suite solutions for global organizations. Powered by the SAP NetWeaver™ platform to drive innovation and enable business change, mySAP™ Business Suite solutions are helping enterprises around the world improve customer relationships, enhance partner collaboration and create efficiencies across their supply chains and business operations. SAP industry solutions support the unique business processes of more than 25 industry segments, including high tech, retail, public sector and financial services.

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" ...

Walmart RFID: Reference Testimony of Linda Dillman, EVP and CIO, Walmart ...

From the Committee on Energy and Commerce ... ... comments to the House Committee on Energy and Commerce Subcommittee on Commerce, Trade and Consumer Protection concerning the expansion of radio frequency identification (RFID) technology into new industries and the potential impact on consumers ...

Testimony of Ms. Linda M. Dillman, Executive Vice President and Chief Information Officer, Wal-Mart Stores, Inc., 702 SW 8th Street, Bentonville, AR, 72716 provided to the Subcommittee on Commerce, Trade, and Consumer Protection ...

... 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. ...

Linda Dillman testimony continues ...

... On April 30, 2004, Wal-Mart moved EPCs from the laboratory environment to an actual field pilot program. Currently, cases and pallets of 21 products (1) from eight suppliers (2) destined for one distribution center and seven Supercenters (3) in North Texas are being tagged. At our Sanger, Texas, distribution center, we have placed readers at our receiving doors, above our conveyor belt systems, and at our shipping doors. At the seven Supercenters, we have placed readers at the receiving doors, at strategic points throughout the stores’ backrooms, at the door to the sales floor, and at the trash compactor. There are no readers on the sales floor, at the check stands, or at customer entryways or exits. ...

Lastly, Dillman testimony concludes with ...

... During 2004 to 2006, Wal-Mart will continue to focus on case-and pallet-level tagging. However, because some cases also serve as consumer packaging (4), there will be instances where a consumer could purchase a product which bears an RFID tag. We currently have three products in our pilot program -- two HP printers and one HP scanner -- where this is the case. These tags are on the outermost packaging of the product and, adhering to EPCglobal privacy guidelines, are marked with an EPCglobal symbol. ...

Walmart RFID Compliance References

Radio Frequency Identification (RFID) Technology: What the Future Holds for Commerce, Security, and the Consumer
The Committee on Energy and Commerce
2125 Rayburn House Office Building
Washington, DC 20515
(202) 225-2927

Walmart RFID: WalMart crowned DVD king

From Daily Variety ... For instance, the firm is now requiring all its suppliers, including Disney, to put RFID (radio frequency identification) tracking tags on each shipment to ...

The Walmart stores participating in the North Texas RFID pilot are located in the communities of:

The Colony
Wal-Mart Supercenter
4691 State Hwy 121
The Colony, TX 75056

Decatur
Wal-Mart Supercenter Store #421
800 S US Hwy 81/287
Decatur, TX 76234

Denton
Wal-Mart Supercenter Store #467
1515 South Loop 288
Denton, TX 76208

Hickory Creek
Wal-Mart Supercenter Store #3286
1035 Hickory Creek Blvd
Hickory Creek/Dento, TX 76210

Lewisville
Wal-Mart Supercenter Store #217
801 West Main
Lewisville, TX 75067

Wal-Mart Supercenter Store #5092
190 East FM 3040
Lewisville, TX 75067

Plano
Wal-Mart Supercenter Store #2883
8801 Ohio Drive
Plano, TX 75024

The biggest benefit will be better merchandise availability. WalMart wants to ensure products are available for purchase when needed. Longer term, as usage of this technology expands, EPC and RFID will help keep costs down - which translates into the everyday low prices enjoyed at WalMart stores.

Walmart RFID: WalMart Plowing Ahead with RFID

From BPM Today, CA ... By Kimberly Hill. WalMart intends to expand its RFID program in mid-2005 to three additional distribution centers that cover 100 more stores than the pilot. ...

Walmart RFID: WalMart Plowing Ahead with RFID

From BPM Today, CA ... By Kimberly Hill. WalMart intends to expand its RFID program in mid-2005 to three additional distribution centers that cover 100 more stores than the pilot. ...

Walmart RFID: RFID's Secret Path to ROI

From CIO Today, CA ... Not too long ago, Wal-Mart launched its much-ballyhooed pilot project to use radio frequency identification (RFID) technology to wring further costs out of its ...

RedPrairie Offers Flexible RFID Software Solutions for RFID Compliance

RFID technology is an integral part of the RedPrairie software suite. For companies with legacy systems and RFID compliance requirements for the WalMart or DOD mandates, RedPrairie has created RFID Igniter™ and RFID Accelerator™. These RFID software applications can be easily integrated with any ERP or distribution system.

Recently, RedPrairie Corporation announced it is leading the RFID pilot for Unilever North America. The pilot enables Unilever to implement and test RFID technology in its supply chain to prepare for compliance with the mandates from WalMart other top retailers and the U.S. Department of Defense to ship products using RFID at the pallet and case level next year.

Three Unilever locations have been chosen for the pilot, including a manufacturing site and two distribution centers. RedPrairie’s RFID AcceleratorTM software will enable Unilever to meet the demands of the large retailers without replacing its existing infrastructure. The application provides RFID software agents, which collect and verify RFID tag information, retrieve related inventory data, and pass this combined information to the retailers. This RFID software solution provides the pallet and case-level RFID information that Wal-Mart, Target and others require.

Walmart RFID: Wal-Mart turns on radio tags

From Globetechnology.com, Canada ... Friday. The pilot program is a significant step in Wal-Mart's much-publicized mandate to adopt the technology known as RFID. Wal ...

Walmart RFID: Wal-Mart turns on radio tags

From Globetechnology.com, Canada ... Friday. The pilot program is a significant step in Wal-Mart's much-publicized mandate to adopt the technology known as RFID. Wal ...

Walmart RFID Pilot: Wal-Mart tests radio-frequency identification tags

From Twin Falls Times-News, ID ... The world's largest retailer is beginning its long-awaited test of radio-frequency identification, or RFID, tags in seven area Wal-Mart Supercenters. ...

Walmart RFID Pilot Update: The Tests Begin...

BENTONVILLE, Ark., April 30, 2004 - A new era in supply-chain management begins this morning as Wal-Mart and eight product manufacturers begin 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," said Linda Dillman, executive vice president and Chief Information Officer. "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. The implementation beginning today will pave the way for achieving this goal...

... Field Test Synopsis
Initially, a total of 21 products out of the more than 100,000 products carried in a typical Supercenter will be included in the trial. Cases and pallets containing these products will feature EPCs when delivered to Wal-Mart's Sanger, Texas regional distribution center where RFID readers installed at dock doors will automatically let Wal-Mart's operations and merchandising teams as well as suppliers know this exact shipment of products has arrived and is inside the building. Cases will then be removed from pallets and processed as usual through the distribution center.

Wal-Mart is targeting 100 percent readability of pallet tags through dock doors and 100 percent readability of case tags on distribution center conveyor belts.

At seven pilot stores in the Dallas/Fort Worth metroplex - specifically in the communities of The Colony, Decatur, Denton, Hickory Creek, Lewisville and Plano, RFID readers at dock doors will replicate the process from the distribution center by automatically confirming that this particular shipment is now in the store's back room. Individual products will then be stocked as needed.

During the initial test, tagged cases and pallets may be distributed to stores throughout North Texas and South Central Oklahoma - the geographical area served by the Sanger, Texas distribution center. As suppliers expand their efforts to meet the requirements of multiple retailers, it is possible that tagged cases and pallets will arrive at Wal-Mart stores around the country. However, readers will not be installed in stores outside the Dallas/Fort Worth metroplex so those cases and pallets would be handled as usual.

Although Wal-Mart and its suppliers are focusing on case and pallet level tagging, there are instances where a case can also be a product's individual consumer packaging. This is especially true for electronic items. In the test beginning today, three products - two HP Photosmart photo printers and an HP ScanJet scanner - may feature RFID tags on the outer packaging consumers see on store shelves. That outer packaging will be marked with an EPCglobal symbol...

About Wal-Mart Stores, Inc.Wal-Mart Stores, Inc. operates Wal-Mart Stores, Supercenters, Neighborhood Markets and SAM'S CLUB locations in the United States. Internationally, the company operates in Puerto Rico, Canada, China, Mexico, Brazil, Germany, United Kingdom, Argentina, and South Korea. The company's securities are listed on the New York and Pacific stock exchanges under the symbol WMT.

In Texas alone, Wal-Mart Stores, Inc. employs more than 130,000 Associates and operates 92 Wal-Mart discount stores, 196 Supercenters, 26 Neighborhood Markets, 69 SAM'S CLUB locations and 12 distribution centers.

Walmart RFID: Wal-Mart Begins Roll-Out of Electronic Product Codes at Seven ...

From HispanicBusiness.com ... 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 ...

Walmart RFID: Wal-Mart turns on radio tags

From CNET News.com ... said Friday. The pilot program is a significant step in Wal-Mart's much-publicized mandate for the technology known as RFID. Wal ...

Walmart RFID Pilot: Wal-Mart RFID Tests Underway

From InternetNews.com ... RFID-enabled pallets started arriving Friday at retail giant Wal-Mart's (Quote, Chart) distribution centers in the Dallas/Fort Worth Metro region as ...

Walmart RFID Label Pilot: Wal-Mart Begins Using Smart Labels

From Springfield News Sun, OH ... reduce theft. The radio frequency information (RFID) tags provide automatic tracking of pallets and cases of goods. Eight suppliers ...

Walmart RFID Pilot: WalMart Takes First Shipments Of RFID - Tagged Products

From Information Week ... Last June, Wal-Mart told its 100 largest suppliers that it expected a certain percentage of cases and pallets affixed with RFID tags to arrive at Dallas-area ...

Walmart RFID Pilot...

The Walmart RFID pilot will will be conducted at their Texas Distribution Centers. This pilot will test RFID technology in the supply chain at the case level. It will prove the efficacy of the receiving, warehouse management, and order fulfillment business processes using RFID to track case units.

Walmart has mandated their top suppliers to use RFID technology by 2005. The Walmart RFID technology strategy is to leverage EPC and ISO compliant RFID standards. "Keep it simple" is the message Linda Dillman (WalMart CIO) delivered to technology vendors at the Walmart RFID Technology session. 
WalMart's supply chain partners will find benefits in the additional sales revenue generated, due to improved out-of-stock levels. Lower operating costs will be realized through labor reduction and efficient business processes. For Walmart suppliers, using RFID technology is more than just about compliance with the mandate. The suppliers will create a return on investment within their own operations as well as for Walmart. 

Walmart's leadership is clear to the RFID technology vendor community that "the first to market wins" (and wins big). The Walmart RFID pilot should prove the robustness of vendor RFID systems at their Texas distribution centers. The Walmart compliance market is off and running. RFID technology vendors must develop effective strategies in the immediate future to meet the specific requirements of Wal-Mart and their suppliers. Walmart and their partners will learn from the RFID pilot and adapt their business process to reap the benefits of RFID.