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• Date: 2018-09-05
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Cost - value killer, ruthless razor.It's important for investors to be aware of this all the time.So how does wal-mart control costs?

Wal-mart stores inc. enjoys the biggest advantage in the global retail industry because its distribution system is the most efficient.The reason for this is nothing more than a push towards productivity through science and technology, with the widespread adoption of RFID tags (Internet of things RFID).Sustained, rapid and at the same time, the continuing innovation supplement shelves logistics strategy, continuously introduce and use of modern supply chain management technology, shelf continues to lead consumers to its shores enough quantity, variety and quality, avoid the shortage of goods out of stock and a cause, thus make wal-mart stores in the United States and all over the world greatly improve the economic benefit of supply chain and service efficiency, finally makes wal-mart today's brilliant.

Use RFID technology to achieve the greatest advantage

According to a study by the American shippers research center at the end of 2005, walmart's widely adopted RFID label technology in its retail stores and distribution centers in the United States and around the world, reduced the incidence of goods shortage and product unavailability on the shelves by 16%, thus greatly improving customer service satisfaction.In fact, the so-called RFID tag is nothing more than an RFID tag with a technical content far beyond the barcode and unique information.When goods enter and leave the access port, the RFID label can send out wireless signals and immediately transmit the information to the RFID reader, which will be transmitted to all links of the supply chain operation and management department.The inventory dynamics of warehouses, yards, distribution centers, and even store shelves are clear.

In 2005 alone, wal-mart added more than 50 million FRID tags to its existing base.The operation of FRID technology label is actually quite simple and requires only a few people to manage. The efficiency of goods tracking and inventory searching is amazing, which greatly improves the inventory management level, reduces inventory and reduces logistics costs.There should be no shortage of all kinds of products on the shelves of wal-mart stores, the quick charging logistics strategy of the store shelves must be further implemented, and if emergencies and accidents are unavoidable, consumers must be sent a notice in advance to explain the reasons, apologize and announce the date of goods supplement.The information dynamics of inventory, sales and after-sales service, financial management and other information of wal-mart stores, suppliers, manufacturers, transportation services and middlemen are fully mastered by the headquarters of wal-mart stores in the United States.

The cost of RFID technology is borne by the supplier

All items on the store shelves of all stores owned by the wal-mart retail group, the supplier's product packaging and pallets, etc., must be tagged with RFID, and the accompanying scanning and tracking screen display machine readers must also be in place.The goal is to comprehensively grasp the goods dynamic on the shelves, pallets, warehouses and in transit of wal-mart stores in the first time and on the first site through the rfid technology label and electronic information network, and the operating procedures accuracy of its quick charging stores or chain store shelf logistics service strategy can reach more than 99%.

As for RFID technology costs shall be borne by the supplier, basically because the supplier can strengthen the close relationship with walmart retailers, enlarge the scale of commodity marketing economy, reduce logistics cost and improve efficiency, gain considerable technical innovation investment returns, rather than the RFID cost to actively advocate high-tech technology supply chain retailers wal-mart head.Currently, the cost of FRID rfid tags, which average about 0.5 yuan each, is also falling sharply.Meanwhile, the first FRID technology label currently used by wal-mart began to be phased out in July 2006, and the second video recognition technology label has been fully activated.Wal-mart USES incentives and appropriate compensation to push its suppliers to actively adopt the FRID second-generation technology at a cost of no more than 0.5 yuan and probably no more than 0.1 yuan by 2020, and its users will be more widely used.

Summary: under the general application of RFID tag technology in the Internet of things, the role of electronic information technology in supply chain management should be expanded. Starting from the source of supply, the company is committed to reducing logistics costs. As long as persistent efforts are made, the overall positive balance of the retail industry can be achieved.