Wal-Mart is banking on this technology to manage inventory more efficiently, reduce numbers of data entry errors, and lower human labour costs in a distribution center [Packaging.Com].
The retailing major is intending to use the data to keep track when stock is running low on shelves or when items have been stolen. The other advantages expected are:
- The movement of inventory can be tracked
- Goods can be received and shipped faster
- Ease of predicting product demand
- Shoppers can save time
- Out of stock situations can be avoided
- Shoppers get a better deal as system becomes more efficient
- The right products are available at the right stores at the right time
- Boost sales
With all these advantages in sight, Wal-Mart is confident of sure success to ensue on adopting this technology.
The other major limitations are:
In the tie up with IBM Global Services that has resulted in deployment of RFID equipment in grocery sections of seven pilot Wal-Mart stores, IBM consultants have encountered interference from equipment such as handheld walkie-talkies, forklifts, and other devices typically found in distribution facilities. Cell phone towers located near the premises, which transmit at the high end of the frequency band, sometimes leak unwanted radio waves into RFID readers.