RETAIL APPLICATION AND BENEFITS

APPLICATIONS

     Large firms who are early movers are gradually integrating RFID systems into their supply chain management systems.  These large early movers, most notably Wal*Mart and the Department of Defense, are applying the technology in specific warehouses and stores; realizing the benefits of RFID while continuing to refine their RFID implementation strategies.  As of December 2005, Wal*Mart had RFID systems operating (to varying degrees usage) in 500 stores and 5 distribution centers.  The Department of Defense was using RFID systems in two major oversea transshipment centers.

     Receiving: 

By eliminating the requirement to properly position products for line-of-sight reading of bar codes, RFID systems reduce physical labor requirements and speed the process of “checking-in” inventory.  This improves receiving dock productivity, allowing for larger amounts of product to be handled.  When an RFID tag is read, middleware interfaces with Order Management Systems to determine if the product is required to fill an order now.  If the product is required now, it is moved directly to an outbound shipment dock.  This allows for improved cross-dock movement and reduced effort in moving product.  Additionally, RFID systems allow for quicker identification and tracking of damaged goods by the firm.¹

     Storage: 

RFID systems improve the accuracy and efficiency of storage by eliminating the need to manually re-scan bar codes on product and storage areas.  Additionally, RFID systems will alert operators when products are placed in an incorrect location.  This is made possible by the real-time nature of RFID systems and its ability to interface continuously with Warehouse Management Systems.  Additionally, temporary storage is improved by eliminating the need to stack product in a manner to allow for manual scanning, and the ability of RFID to identify when incompatible materials are stored next to each other. Additionally, stock outs are reduced due to misplaced product.¹

     Pick/Pack and shipping: 

RFID middleware can interface with Warehouse Management and Order Management Systems to ensure correct products are packaged for shipment or pulled for shelf re-stocking.  RFID systems can verify the correct product is placed in the correct vehicle and can double check the items loaded with the bill of lading.¹

     Labor: 

The real-time nature of RFID systems allows for benchmarking of warehouse management processes, facilitates evaluation of individual employee productivity and can greatly assist in planning labor requirements.¹