Executive Briefings

Wal-Mart Still Very Serious About RFID Fines--and Don't You Forget It

Wal-Mart wants everyone to know it remains quite serious about fining suppliers that don't abide by its stringent RFID mandate.
The world's biggest company by revenue ($351bn) confirmed its commitment to RFID tags in its supply chain in mid-January when RFID Update reported that Sam's Club suppliers could face fines for not attaching RFID tags to its shipments to a Texas distribution center. Suppliers were informed of the possible fines, from $2 to $3 for each non-RFID-tagged pallet, in a Jan. 7, 2008, letter. (Wal-Mart owns Sam's Club.)
The deadline for the suppliers to comply with the RFID mandate is Jan. 31, and it applies only to those Sam's Club suppliers that ship into the DeSoto, Texas, distribution center, RFID Update reported. The significance of the letter cannot be underestimated. "This is believed to be the first time Wal-Mart...has announced specific penalties for suppliers who do not follow RFID tagging guidelines," according to article.
The significance of the amount is also noteworthy. RFID tags, such as the ones suppliers attach to pallets or individual items on pallets, can range from 10 cents to 25 cents, depending on how many tags suppliers purchase from tag makers.
Source: CIO, http://cio.com

Wal-Mart wants everyone to know it remains quite serious about fining suppliers that don't abide by its stringent RFID mandate.
The world's biggest company by revenue ($351bn) confirmed its commitment to RFID tags in its supply chain in mid-January when RFID Update reported that Sam's Club suppliers could face fines for not attaching RFID tags to its shipments to a Texas distribution center. Suppliers were informed of the possible fines, from $2 to $3 for each non-RFID-tagged pallet, in a Jan. 7, 2008, letter. (Wal-Mart owns Sam's Club.)
The deadline for the suppliers to comply with the RFID mandate is Jan. 31, and it applies only to those Sam's Club suppliers that ship into the DeSoto, Texas, distribution center, RFID Update reported. The significance of the letter cannot be underestimated. "This is believed to be the first time Wal-Mart...has announced specific penalties for suppliers who do not follow RFID tagging guidelines," according to article.
The significance of the amount is also noteworthy. RFID tags, such as the ones suppliers attach to pallets or individual items on pallets, can range from 10 cents to 25 cents, depending on how many tags suppliers purchase from tag makers.
Source: CIO, http://cio.com