Walmart RFID Commitment ReAffirmed by New CIO ...

Walmart CIO, Rollin Ford, reaffirms committment to the Walmart RFID program, praising company innovations and the efforts of Linda Dillman. ...

... "The pioneering work at WalMart to mine the supply chain benefits of Radio Frequency Identification (RFID) will continue unabated under the Wal-Mart Information Systems Division's new leader. Rollin Ford, WalMart's new executive vice president and chief information officer, who previously served as the company's executive vice president of logistics and supply chain, strongly endorsed RFID technology at the biannual CIO summit, hosted by WalMart on Wednesday in Bentonville. Ford told the audience of CIOs he was thrilled to be in his new position and that both logistics and information systems were at the center of WalMart's competitive advantage. Ford said he intended to build on the success of his predecessor, Linda Dillman, who was named executive vice president of risk management and benefits administration at Wal-Mart. " ...

Walmart RFID Commitment ReAffirmed by New CIO: Via WalMart Stores: New CIO Confirms Wal-Mart Commitment to RFID ...:

Walmart RFID: Dillman Transfers ...

Linda Dillman changes positions for WalMart ...

... "WalMart isn't about to abandon RFID technology, but Linda Dillman is taking a step back from the world of RFID. Dillman, the force behind WalMart's initial RFID mandates, is leaving her position as executive vice president and chief information officer to oversee risk management and benefits administration for the giant retailer. " ...

Walmart RFID: Dillman Transfers: Via John R. Johnson's RFID Watch Weekly: WalMart shuffles RFID management team ...

Via WalMart Stores: WalMart Names Lawrence Jackson President and CEO of Global Procurement: Other senior leadership changes spread talent across the organization: "Linda Dillman, previously executive vice president and chief information officer, will become executive vice president of risk management and benefits administration. She will also lead the company's sustainability efforts. Last fall, Wal-Mart announced aggressive sustainability goals and has recently increased its offerings of organic products. Rollin Ford, previously executive vice president of logistics and supply chain, will become executive vice president and chief information officer, responsible for leading the company's global information systems division. "

WalMart Dillman RFID Push ...

Walmart continues to grow and expand. Expect it to push further in the adoption of RFID technology. Linda Dillman keeps the pressure on. ...

... "Another 200 suppliers were to come on board the RFID train this month. As if to show how important the technology is to WalMart, Dillman recently said that the company won't invest any more time in those suppliers who drag their feet in complying with the RFID program. " ...

WalMart Dillman RFID Push: Via The Morning News :: Business Page: Expansion Always In WalMart's Future ...

Linda Dillman Walmart RFID Update ...

Linda Dillman, Walmart CIO, provides update on the Walmart RFID program. ...

Linda Dillman Walmart RFID Update: Via Carthage Press: Wal-Mart: Radio Tags Keep Shelves Stocked ...

... "RFID, or radio-frequency identification tags, has reduced out-of-stock merchandise by 16 percent at the company's stores that have begun to use the technology over the past 12 months, Linda Dillman, WalMart's chief information officer, said at the company's annual analyst meeting Wednesday. WalMart has been able to restock RFID-tagged items three times as fast as non-tagged items ... " ...

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. " ...

The Facts on RFID: Benefits and Implications ...

The Facts on RFID: Benefits and Implications: Office of Congressman :: Joe Barton

... "It is our job to cut through the hype, get the facts about RFID, learn more about its applications, and examine the pubic policy issues generated by its use and widespread deployment. The benefits to our homeland security could prove the most beneficial aspect of the technology, Barton, chairman of the full Energy and Commerce Committee, continued. The capability to track imports and containers will enhance our ability to monitor what is coming across our borders and where it goes. Similar applications related to controlled substances and hazardous materials shipped to or within the states will provide an additional layer of security we would all welcome. Hearing witnesses included Linda Dillman, chief information officer for Wal-Mart Stores, Inc., and Sandra Hughes, global privacy executive for The Proctor & Gamble Company, who each testified to the consumer applications of RFID. Testimony was additionally heard from one of the leading scientists in RFID technology, Dr. Sanjay Sarma, from the Massachusetts Institute of Technology, as well as witnesses from the American Civil Liberties Union and the Electronic Privacy Information Center, who testified on the possible privacy implications of RFID technology. " ...

RFID Walmart Dock Door Scenario ...

Testimony of Linda Dillman, Walmart, at the Committee on Energy and Commerce: Explains RFID Dock Door Scenario ...

From The Committee on Energy and Commerce ...

... "During peak shopping times, such as Saturday afternoon, it is a challenge to keep items that sell very quickly, such as health and beauty aids, in stock and on the shelf. Wouldn't the consumer have a better shopping experience if the stock clerk was notified in time to avoid an out-of-stock condition and where to find the replacement merchandise? With RFID tags attached to the cases and readers placed strategically throughout the store's backroom, we can tell the last reader those cases passed by, helping us determine whether the cases went out to be stocked or are just 15 feet away from the dock door through which they arrived. " ...

Linda Dillman on the Walmart RFID Program ...

Dillman on the Walmart RFID Program: WalMart CIO Linda Dillman to Offer Keynote Address at RFID World ...

From Business Wire (press release), CA ... Linda Dillman, executive vice president and chief information officer (CIO) of Wal-Mart Stores, Inc., one of the RFID market's most outspoken ...

... Linda Dillman, executive vice president and chief information officer (CIO) of WalMart Stores, Inc., one of the RFID market's most outspoken executives on the benefits of RFID in the retail supply chain, will be presenting the opening keynote address at RFID World 2005, on March 2nd, at the Gaylord Texan Resort in Dallas, Texas. An additional highlight of the first day of RFID World 2005 is an end-user panel, featuring a cross-section of industry players leading the way in early RFID implementations. Moderated by D'Anne Hotchkiss, editor of RFID News & Solutions, the panel includes Miley Ainsworth, director, Innovation and Scanning Technology, FedEx Corporate Services; Stephen M. Moody, chief warrant officer and RFID program coordinator, U.S. Army; Robert E. Kashmer, Jr., vice president, Information Technology, H. D. Smith Wholesale Drug Company; and Howard Stockdale, chief information officer, Beaver Street Fisheries. These end users will discuss lessons learned in early implementations and share ideas for expanding these trials into broader-scale deployments. ...

Shorecliff Communications is a leading producer of high-quality content rich events worldwide in technology industries including broadband, wireless infrastructure, telecommunications and radio frequency identification (RFID).

Additional resources on Linda Dillman and the Walmart RFID program in the retail supply chain ...

Wal-Mart begins using RFID product tags: Wal-Mart chief information officer Linda Dillman would not say ... a presentation organized Thursday by Wal-Mart in Dallas, and he spoke with Dillman and Ian ...

Wal-Mart Details RFID Requirement: President and CEO Mike Duke, CIO Linda Dillman and others at ... Opts for EPC Class 1, V2.) Dillman said Wal ... “Wal-Mart is saying to CPG companies and RFID vendors ...

Talking RFID with Wal-Mart's CIO: when an item is out of stock, says Linda Dillman, Wal-Mart's chief information ... In RFID, Wal-Mart is running a little behind some of its international ...

RFID Update

From Congressman Cliff Stearns, Trade & Consumer Protection Subcommittee ...

... "The most common commercial application of Radio Frequency Identification (RFID) uses radio waves to transmit data from a transmitter called a tag to a scanning device called a reader, which can be networked with a computer database, explained Rep. Cliff Stearns (R-FL), Chairman of the Commerce, Trade & Consumer Protection Subcommittee. These RFID tags can be attached by manufacturers and retailers to products and packaging for tracking large bulk containers and pallets along the supply chain. One possible application of this technology involves using readers at a store checkout - consumers place tagged items in their shopping cart, pass through the checkout where the items are read, and their accounts are automatically updated without waiting in line,' said Stearns. 'However, this point of sale application raises privacy issues and these questions. Will I be able to disable or remove the tag? What happens to the data harvested from my purchase? How secure is that data, and what prevents third parties from accessing and misusing that information? The subcommittee heard testimony from a distinguished panel of witnesses from academia, business, and consumer privacy organizations. Representing WalMart, the world's largest retailer, Linda Dillman, Executive Vice President & Chief information Officer, outlined the company's use of RFID. 'Currently, cases and pallets of 21 products from eight suppliers destined for one distribution center and seven Supercenters in North Texas are being tagged. The readers assist Wal-Mart in knowing when a product is received, where it is stored, when it goes on the sales floor, if it returns for any reason, and when the case is submitted for recycling." ...

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 Maps RFID Expansion Plans

From Information Week ... Michael Duke, speaking at the Retail Systems trade show where Wal-Mart CIO Linda Dillman last year announced the January 2005 RFID deadline, laid out the ...

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 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.

Walmart RFID Technology

Walmart and the United States Department of Defense (US DOD) mandate their vendors 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 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.