Question

Marketing Channel & Supply Chain

how does Wal-mart believe they provide value to customers through the use of RFID technology, and working with suppliers to deliver collaborative benefits?

Answer 1

RFID stands for Radio Frequency Identification. This offers wireless system of tags and readers. Tags use radio systems to communicate their identity and other information to nearby readers. It is similar to barcode system to keep track of inventory and sales in real time.

However in barcode system good needs to pass through particular optical scanner wherein RFID tag data can be read outside the line of sight.

Wal-Mart discovered that they are lacking sales and customer satisfaction due to incorrect stock numbers and felt need of better supply chain visibility. RFID resulted in more accurate ordering decisions.

By using this advanced technology Wal-Mart can manage its inventory very efficiently thereby reducing cost on inventory management.

This technology offers few advantages to Wal-Mart

Visible inventory-By digitizing inventory information Wal-Mart makes accurate stock information available to online. Customer can know real-time availability of items currently in stocks and also find easy to order out of stock items.

Customer convenience-Customers can purchase goods online and retrieve them from stores when they are ready. Some of the location also offers good delivery. Without RFID to track location of in store goods and quantity the delivery system will be very costly. Wal-Mart uses this system efficiently in grocery pickup and delivery.