Wal-Mart quantifies RFID benefits

Wal-Mart, which mandated its suppliers to start using RFID from the start of this year, has released the first results of how radio frequency identification (RFID) technology has affected its business.

According to Silicon.Com, researchers from the University of Arkansas hired to investigate if the use of RFID tags in the supply chain had tangible benefits for the supermarket chain, found that the use of RFID has resulted in a 16% reduction in out-of-stocks.

The research, which compared 12 stores equipped with RFID and 12 using barcode equipment, found that out of stock items in RFID stores were replaced three times faster than those in barcode stores. There were also fewer over-orders and a 10% reduction in manual orders.

The research proves the value of RFID and Wal-Mart will be unveiling more RFID initiatives soon, says Wal-Mart CIO Linda Dillman.

Food processing companies might have to make the switch to using RFID in the supply chains as retailers around the world accelerate plans to use the technology, according to a new report by Frost & Sullivan.

The Food Production Daily says while RFID has long been touted as the future of logistics for all companies by allowing retailers and suppliers to track goods throughout the supply chain, high prices for tags and systems has held enthusiasm at bay.

However, the Frost & Sullivan report reveals that retailers worldwide spent $400.2 million on RFID in 2004, with that spending expected to increase ten times by 2011.

The report says the current high level of investment allows only the biggest retailers to implement the technology, with the likes of Wal-Mart, Tesco, Metro, Target and Albertson`s being among those testing the technology.

Symbol Technologies has announced two new programs to reduce deployment time and implement an interoperable end-to-end enterprise mobility system, reports TechWeb.

The report says the Solutions Validation Program and the SymbolPLUS Partner Program are designed to validate third-party vertical market applications and peripherals with Symbol hardware before purchase to reduce the cost of evaluating solutions.

The validation program, offered in the new Symbol Solution Centre, will allow partners to check their applications and solutions on hardware.

The centre, an RFID testing and development lab in Holtsville, New York, is expected to drive faster market release and reduce post sales support.

Radio frequency identification technology is gaining momentum in medical fields, where hospitals and clinics are using it to track supplies as well as patients, reports Wisconsin Technology Network.

The report says although RFID is far from becoming an industry standard because of technical difficulties in hospital environments and cost issues, RFID has seen its share of success in individual hospitals to provide security.

Some hospitals have already begun using RFID to track and monitor patients who need special care like Alzheimer sufferers, to provide security in maternity wards to prevent infant abductions, and to keep track of expensive medical equipment.

The report says as medical professionals realise the benefits of RFID technology, and as hospitals increasingly develop new facilities with greater levels of technology infrastructure, RFID is expected to play an expanding role in health care.