Meat + Poultry - July 2004 - 33

away
Wal-Mart breathes life
into R.F.I.D.
By Joel Crews

jcrews@sosland.com

T

hanks to strides made in radio frequency identification technology and its adoption by the biggest retailer in the world, meat and
poultry processors are among the legions of companies deciding

whether or not to get on board now or risk getting left behind.
About a year ago, Wal-Mart officials announced they would require the retailer's
top 100 suppliers to put radio wave-emitting tags on case and pallet shipments
headed to Wal-Mart and Sam's Club stores in the Dallas-Fort Worth market. The
deadline for compliance is January 2005.
Companies such as Tyson Foods, Springdale, Ark., and Kraft Foods, Northfield, Ill., are among those affected by the mandate. Thirty-seven additional
suppliers voluntarily agreed to comply after the announcement was made. Observers estimate this segment of Wal-Mart's suppliers would represent approximately 8 billion R.F.I.D. tags per year. At about 50 cents per tag, a per unit price
that will drop over time, developers of R.F.I.D. are pointing to the value offered
beyond the initial investment in the equipment. Pilot programs to test the technology are already underway with a handful of suppliers at the retailer's North
Texas distribution facility.
Officials with the Bentonville, Ark.-based company say the investment in electronic product codes using R.F.I.D. tags will pay off in the form of fewer out-of-stock
items and by increasing efficiency along the supply chain by giving the retailer a
transparent view of operations between its suppliers and the distribution centers.
"It is imperative that we have the merchandise the customer wants to buy when
they want to buy it," said Linda Dillman, Wal-Mart's executive vice president and
chief information officer, this past April. "We believe R.F.I.D. technology is going
to help us do that more often and more efficiently." R.F.I.D.-related businesses, including hardware and software suppliers as well as implementation consultants
have flourished on the news of Wal-Mart's mandate.
Speed reading
R.F.I.D. systems are designed to automatically identify objects without human intervention. The components include a tag with a microchip, an antenna,
an external reader, which activates or "wakes up" the chip, and some type of
computerized data collection center. At the center of most R.F.I.D. systems is
a microprocessor embedded with a limited amount of memory (either volatile
or static, depending on the application) a battery or magnet and an antenna.
JULY 2004

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Meat + Poultry - July 2004

Table of Contents for the Digital Edition of Meat + Poultry - July 2004

Contents
Meat + Poultry - July 2004 - 1
Meat + Poultry - July 2004 - 2
Meat + Poultry - July 2004 - 3
Meat + Poultry - July 2004 - Contents
Meat + Poultry - July 2004 - 5
Meat + Poultry - July 2004 - 6
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