STORES Magazine - December 2008 - (Page 74)

NUTS AND BOLTS / RFID can have all of these readers in your warehouse and you can read your whole inventory without having to do a physical [inventory].” Bundled solution World Kitchen worked with Atlantabased PEAK Technologies in launching its RFID system. PEAK sells a bundled solution to vendors, which includes label printers with code verifiers as a way to reduce the capital expenditure, says Evan Cutler, a PEAK corporate account manager. PEAK’s solution is designed to achieve return on investment through enhanced inventory management, wireless data collection and linkage to enterprise resource planning systems. Though more affordable, cost of RFID tags “It’s getting harder and harder PEAK ACHIEVES for companies to have the cash still a hurdle for suppliers ROI WITH: for the capital expenditures for Enhanced inventoall of these printers,” Cutler says. BY M.V. GREENE ry management Bundling is a way “to change the Wireless data dynamic and give [clients] the n 2004, W al-Mart told its largest suppliers that they would collection have to begin using RFID labels or risk sanctions. Wal-Mart printer as part of an operating Linkage to entertargeted its top 100 suppliers first, then the next 200 largest expenditure.” Following a threeprise resource in a tiered mandate process. Other retailers, including Taryear service contract, the printers planning systems get and Albertsons, followed with their own RFID mandates. “are technically paid off and they get a technology refresh or continue with the printers.” This past January, Wal-Mart said it ment have decreased significantly, but would begin charging suppliers a $2 fee remain a sticking point for vendors. He RFID-compliant thermal print techfor each pallet that arrived at its Texas estimates that World Kitchen has spent nology can help protect vendors against Sam’s Club distribution center without about $250,000 for its RFID project, potential chargebacks from retailers, an RFID tag. going beyond minimum deployment in Cutler says. “They can show proof that One vendor subject to the Wal-Mart an effort to maximize efficiencies the codes were acceptable and may have and Target mandates is World Kitchen, a throughout its distribution process. gotten damaged in transit.” Rosemont, Ill.-based manufacturer and “The miracle price tag of five cents a Suppliers like PEAK also are taking distributor of bakeware, dinnerware, label is not in the near future,” he says. steps to ensure that RFID labels are decookware and cutlery sold under brands “We’re down to 17 or 18 cents a label signed efficiently and that systems interthat include CorningWare, Pyrex, now versus the 54 cents we paid” four face with organizations’ ERP systems. Corelle, Revere, EKCO, Baker’s Secret, years ago, but “until the price tag comes Despite predictions that falling RFID Magnalite, Chicago Cutlery and OLFA. down more, I don’t see anybody doing tag prices will spark the market, Moore While the intrinsic benefits of RFID more than they have to.” says the timeframe for RFID adoption are well established, deployment brings While World Kitchen’s immediate by smaller vendors remains uncertain. new burdens to vendors’ technology orfocus has been to meet the Wal-Mart Cutler agrees, saying that the market has ganizations, says Terry Moore, who adand Target mandates, the long-term experienced “a large pushback” beministers World Kitchen’s RFID efforts. benefits also are clear. “The visibility cause RFID labels are “still 17 times as “We obviously wanted to meet the [into] your inventory is huge,” Moore StORES much as a regular label.” mandate from Wal-Mart and Target,” says. “If everything is tagged you can bahe says. “Wal-Mart’s our biggest cussically track this merchandise all the M.V. Greene is an independent writer tomer: if they do it, you do it. There’s way through the logistics of shipping. and editor based in Owings Mills, nothing to balance.” The trackability and visibility of your Md., who covers business, technology Moore says the costs of RFID deployproduct are seamless. Theoretically, you and retail. Price of Compliance I 74 STORES / DECEMBER 2008 WWW.STORES.ORG http://WWW.STORES.ORG

Table of Contents Feed for the Digital Edition of STORES Magazine - December 2008

STORES Magazine - December 2008 Contents Executive Editor's Page President's Page Wrap Rage Unraveled What Shoppers Think Courting a Comeback 10 Things You May Have Missed Numbers Worth Counting Full Price/Markdown Retail People Cover Story: Navigating the Road Ahead Website Strategy Concept2Watch Online Customer Service International Marketing Green Retailing Online Merchandising Signage Operations Online Strategies Pricing Strategy Kiosks RFID Human Resources Loeb Retail Letter ARTS Update Point of View NRF News Retail Crossword Retail Industry Calendar Last Laugh

STORES Magazine - December 2008

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