Wal-Mart Canada Making RFID Progress

Associates sometimes place manual orders for goods they discover to be out of stock on store shelves, even if more of those goods are available in the back room. But in stores using RFID, associates carry handheld computers prompting them not to reorder if the out-of-stock goods are still in the back room. Reducing manual orders for goods already in stock is an important goal for Wal-Mart, Vitalei explained, because such orders can lead to overstocks within the stores, as well as generate unnecessary transportation costs and carbon emissions.

Another vital technology test remains for Wal-Mart Canada: the ability to read tags on frigid Canadian loading docks. "Winter has just started," O'Connor said. "One objective is to validate that there [will] not be adverse impact [to RFID equipment and read rates] from the cold climate. We want to see if we'll get the read rates we've been getting [so far]."

If the hardware performs satisfactorily throughout the winter, Wal-Mart Canada plans to concentrate its efforts on analyzing the RFID data it is collecting, and working with suppliers to identify areas of focus going forward. As with suppliers for Wal-Mart's U.S. locations, those involved in Wal-Mart Canada's RFID implementation are pulling read-event data from Wal-Mart's Retail Link extranet. "We want to further understand the data and the ROI," O'Connor told attendees. "We'll have continued focus on working with our vendor partners, and finding areas where the technology can improve our processes."

"We've made great progress with EPC RFID so far," said O'Connor, stressing that this success is due to its close collaboration with participating suppliers and RFID vendors. "Without partners, we wouldn't be where we are." Still, the readability of tags in Canada's harsh weather looms as a significant unknown. Without reliable tag reads, Vitalei noted, applications based on tag data analysis won't produce the benefits Wal-Mart Canada and its suppliers are seeking.