Application case of RFID technology in Wal-Mart logistics distribution
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The biggest advantage that American retail giant Wal-Mart Stores enjoys in the global retail industry is that its distribution system is the most efficient. The reason is nothing more than an active demand for productivity from science and technology, and the widespread use of radio frequency identification technology tags (Internet of ThingsRFID). At the same time, it continues to innovate its logistics strategy of continuous and rapid replenishment of shelves, and continuously introduces and uses modern supply chain management technology. The shelves continue to maintain sufficient quantity, type and quality of goods to attract consumers from near and far, avoiding unreasonable out-of-sales and shortages of goods, thereby The economic efficiency and service efficiency of Wal-Mart’s supply chain in shopping malls in the United States and around the world have been greatly improved, and it has finally created the glory of Wal-Mart today.
Using RFID technology to achieve the greatest advantage
According to a research report by the American Shippers Research Center at the end of 2005, after Wal-Mart’s widespread adoption of RFID tag technology in its retail malls and distribution centers in the United States and around the world, the incidence of shortages of goods and product out-of-sales on shelves has been reduced by 16%. Significantly improve customer service satisfaction rate. In fact, the so-called RFID tags are nothing more than RFID tags that have a technology content far exceeding barcodes and unique information on each or even each piece of goods. When the goods enter and exit the channel, the RFID tag can send out a wireless signal, and the information is immediately transmitted to the radio frequency machine reader, and transmitted to all links of the supply chain management department. Therefore, the inventory dynamics of related commodities on warehouses, storage yards, distribution centers, and even store shelves are clear at a glance.
Wal-Mart’s RFID tag technology was developed with the help of the University of Arkansas in the United States. Facts have proved that with the strong support of RFID tag technology and other electronic product code technologies, repeated operations and omissions in ordering and delivery of goods have been avoided. , And there will be no blind spots and black boxes in the operating procedures of the product or commodity supply chain.
In 2005 alone, Wal-Mart added more than 50 million RFID technology tags to its original foundation. The operation method of the RFID technology label is actually quite simple and only requires a few people to manage it. The efficiency of cargo tracking and inventory search is amazingly high, which greatly improves the inventory management level, reduces inventory and reduces logistics costs. The staff of Wal-Mart store holding RFID tag technology machine readers, walk into the store sales hall or goods warehouse regularly, and use the transmitting antenna to scan all the goods. The dynamic information such as the quantity and inventory of various goods will all automatically appear on the machine. On the fluorescent screen of the reader, the items that have been out of stock and are about to be out of stock will send out a warning sound and light signal, and there is no omission.
All in all, to ensure that the various products on the shelves of Wal-Mart’s retail malls should not be in short supply for no reason, the fast-charging logistics strategy of shopping malls must be further implemented. If emergencies and accidents are unavoidable, an advance notice must be issued to consumers to explain Reason, express an apology, and advance the date of replenishment of the goods. What is admirable is that the RFID network of Wal-Mart retail stores distributed in the United States and around the world can implement global integrated operation and management through satellite communication network technology. In other words, the inventory, sales and after-sales service, financial management and other information dynamics of various retail malls of the Wal-Mart Group, various suppliers, manufacturers, transportation services, and middlemen, etc., are fully grasped by the Wal-Mart retailer headquarters in the United States. .
The cost of RFID technology is borne by the supplier
According to a report from the University of Arkansas in the United States, by the end of October 2005, Wal-Mart had promoted modern supply chain management technologies such as radio frequency identification tags (RFID) to more than 500 Wal-Mart retail stores in the United States and around the world. And chain stores. By the end of 2006, the use of RFID technology will be expanded to more than 1,000 companies. In other words, all the products on the shelves of all stores under the name of Wal-Mart Retail Group, the supplier’s product packaging boxes and cargo trays, etc. must use RFID tags, and the scanning and tracking screen display machine readers must be in place. . Its goal is to use radio frequency identification technology tags and electronic information networks to fully grasp the goods dynamics on Wal-Mart store shelves, pallets, warehouses and in transit at the first time and on the first site, and its fast-charging store or chain store shelf logistics services The accuracy of strategic operating procedures can reach more than 99%.
As for the cost of RFID tag technology, the supplier is basically borne by the supplier, because the supplier can strengthen the close relationship with the Wal-Mart retailer, expand the marketing scale of the product, reduce the logistics cost and improve the efficiency, and obtain considerable investment in technological innovation. Rate of return, instead of passing RFID costs onto Wal-Mart retailers that actively advocate high-tech supply chain technology. RFID can indeed improve the productivity of the retail industry, especially in improving the economic efficiency of the supply chain is quite effective. In the past, it took several hours and almost all the staff in the mall were dispatched to check the goods on the shelves of the mall. Now it only takes a few people to do it in 30 minutes. As a result, global suppliers who join Wal-Mart’s RFID technical team to improve the efficiency of inventory and shelf logistics in the retail industry are becoming more and more common.
Science and technology are always in the process of continuous progress, and RFID radio frequency identification technology tags are of course no exception. At present, the average cost of RFID radio frequency identification technology tags is about 25 cents each is also greatly reduced. At the same time, the first-generation RFID technology tags currently used by Wal-Mart will be completely phased out in July 2006, and the second-generation video identification technology tags will be fully implemented immediately. Wal-Mart uses encouragement and appropriate compensation to encourage its suppliers to actively adopt the second-generation RFID technology. The cost will not exceed 7 cents to 8 cents, and it may not exceed 5 cents by 2007, and its users will be more extensive. .
Fast charging shelf strategy greatly reduces costs
According to the requirements of Wal-Mart retailers in the United States, the distribution center must improve the accuracy and real-time performance of shelf replenishment operations through rapid dispatch, and further reduce the inventory cost of the distribution center. This means that suppliers who replenish goods on the shelves of Wal-Mart retail stores and chain stores must increase the frequency of rapid supply operations. However, each delivery is mostly in small batches. Wal-Mart no longer requires suppliers to provide products for half a month, one month, or even longer, and no longer keeps a large number of products for sale in shopping malls or chain stores for a long time. In the warehouse. The current Wal-Mart requires suppliers to provide goods with a sales volume of no more than 5 days. This also makes the work of Wal-Mart and its suppliers very difficult, and the market pressure on both suppliers and sellers is greater. However, as long as the operations are performed properly, fast-charging store shelf logistics Strategy can be successful.
For example, the current supplier can directly use the Wal-Mart retail company’s distribution center to enter the goods flow regulations, allowing the supplier to use the Wal-Mart retail mall and chain store inventory information technology network, not only information sharing, but also joint planning of commodity retail supply chain management, greatly Improve the efficiency, speed and accuracy of its supply, prompting both suppliers and sellers to obtain huge economic benefits, and the quality of customer service is also guaranteed.
The biggest advantage of the rapid replenishment of store shelves logistics strategy is to shorten the supply cycle and increase the supply frequency of small batches, multiple varieties and large ranges of products, further greatly reducing inventory costs and improving the economic benefits of shelf supply. This innovative measure of shelf-supplemented cargo logistics service increased the revenue of Wal-Mart Retail Group by US$285 million in 2004 alone.At present, the Wal-Mart Retail Group is comprehensively promoting the logistics strategy of fast charging store shelves to the daily necessities and commodities operated by the partners.foodRetail chain stores, retail malls, suppliers, manufacturers and manufacturers, expand the coverage and benefit of fast charging shelf logistics strategy.
There is no doubt that implementing a fast-charging shelf logistics strategy in accordance with the requirements of Wal-Mart retailers will inevitably increase the cost of truck freight, but these costs can be reduced by improving the functional benefits and return on investment of the retail market supply chain technology such as RFID to reduce inventory costs . Coupled with the close cooperation of partners such as suppliers and manufacturers, with the widespread use of RFID tag technology in the Internet of Things, expand the role of electronic information technology in supply chain management, and focus on reducing logistics costs from the source of supply. , As long as we make persistent efforts, we will eventually achieve a favorable balance for the retail industry as a whole. The 3,600 Wal-Mart supermarkets, retail malls and chain stores in the United States have adopted the fast-charging shelf logistics strategy to save an average of US$52 million per year in distribution and logistics alone; and its long-term savings target is an average of 310 million per year. Ten thousand U.S. dollars. The fast-charging shelf logistics strategy of Wal-Mart retailers in the United States also has the functions of saving energy, reducing pollution, and protecting the environment. The fast charging shelf logistics strategy is further promoting suppliers to closely cooperate with the global retail logistics policy of the world retail giant Wal-Mart, which is to continuously reduce costs, introduce technology and innovate supply chain operating procedures, and increase its global operating annual revenue target to 2. 85 billion US dollars.
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