Wal-Mart takes steps to further automate and standardize supply chain
In an effort to further automate and standardize the supply chain, Wal-mart Stores Inc. is testing a new methodology. The company is testing RFID tags through automated EDI transmissions. The trial is being conducted with a handful of suppliers and EPCglobal Inc., the standards group spearheading RFID adoption.
The move is intended to automate the systems in a manner that RFID tags trigger advance shipping notices through the EPC Information Service Network each time a supplier ships out products from the warehouse. It would take about a year to put the process in place.
Currently advance shipping notices are sent from a suppliers ERP system. These notices do not arrive in a standard format or in real time. With the new system, Wal-Mart hopes to ensure that the data from suppliers would arrive in a standard format and in real time. The Information Week reports:
A study by the University of Arkanas found that retailers can reduce out of stocks by 16 per cent through the use of RFID tagged cases and pallets. This year, Wal-Mart will begin using handheld RFID scanners in back rooms to identify products that it needs to restock shelves.
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