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THE WORLD'S RFID AUTHORITY
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"ROI at the DC's isn't there..."
by GABRIELLE LOPEZ-ROBLES, posted 02/22/2007
Ken, I ask this question for a greater understanding on my part. What information did you base your statement that no DC ROI exists? Thanks in advance for your reply. > This article denies the Wall Street Journal's claims while > simultaneously confirming them. > > The fact is, Wal-Mart under Linda Dillman was clearly > mandating case-level RFID across the board. She told MSN > Money Magazine that "they would not invest more time in > suppliers that are reluctant..." > > The major CPG's co-opted the initiative to meet their ends > -- namely to insure store-level compliance with promotional > product in which they give Wal-Mart significant funds for > executing. No compliance -- no funds. The use of RFID for > promotions does benefit suppliers, consumers, and Wal-mart; > but it is not the vision Dillman had for the technology. > > It also confirms that the ROI at the DC's isn't there -- > which again was a major thrust of the initiative early on. > > > Finally, it confirms that using RFID to locate general > merchandise among a sea of boxes in the back room doesn't > work either. For example, cases in the box bailer waiting > to be recycled continue to transmit data when the stock > room is interrogated. A bit of a problem with no obvious > solution. > > RFID does make sense for tracking P-O-P compliance, but > that will fail to generate the kind of impact that Wal-Mart > originally suggested by many orders of magnitude. > > RFID will be useful in retail and Wal-Mart blazed the > trail, but their initiative as originally conceived has in > fact fizzled. Why not redefine the initiative honestly and > move on? > > Message threads
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