Proclaiming radio frequency identification (RFID) a success, Wal-Mart Stores Inc says it will have 100 suppliers in compliance with its RFID requirements this month. The Bentonville AR-based retail giant plans to expand the pilot project to 600 stores and a dozen distribution centers by autumn 2005.
Expected to replace the bar code, RFID technology is helping Wal-Mart keep its shelves stocked and reducing the loss of retail products in supply chains. It is used in tags with a computer chip and an antenna that emits a radio signal. When tagged pallets arrive at retail outlets, an alarm sounds if any alterations have occurred during transit. Employees trace missing products with a handheld device that beeps with greater frequency as they come closer to the product.
