Formal Reports - Assignment Example

Encl. Report on Impact of RFID technology 2012 Annual Report Prepared by Ron Moser RFID strategy leader Report Distributed July 19, 2013 Prepared for The Board of Directors Wal-Mart Abstract RFID technology has so far been advantageous for the company in relation to inventory management and supply chain management. Since implementation of this technology required high investment, therefore in initial years the returns were below expectations, but in long run it can prove to be profitable because through improved inventory management it can enhance sales thus leading to higher revenues for the company.

RFID can ensure that goods are always available on the shelves thus catering to customers becomes easy and customer satisfaction which has always been the motto of Wal-Mart becomes ensured. Also, inventory visibility is another advantage of RFID which keeps tracks of the whereabouts of items whether in backroom or shelves. This requires less use of manual orders and workers can devote more time to customers. RFID has also reduced inaccuracy in inventory record. Introduction The main area of Wal-Mart that is benefitted by RFID is the improvement of supply chain management.

RFID can be extremely beneficial for retailers and production aspect of the supply chain. RFID is an electronic substitue of barcodes. In combination with mobile computing and online technologies, RFID can help the company to efficiently manage and upkeep its stocks. This technology can eliminate manual labour for identification of products and their storage. It helps the company to manage its stocks and assets from anywhere in the world and helps management to make appropriate decisions (Bhatta, 1-2).

The reason of this paper is to see the benefits of RFID on Wal-Mart, to see how its product functions have changed for the better after implementation of this technology. RFID helps in keeping accurate track of stocks thus leading to positive replacement of stocks, and can bring improvement in gross margins and unit volumes. Impact of RFID technology Principle advantages of RFID technology It was in 2005 that Wal-Mart implemented RFID for the first time in its supply chain in order to improve efficiency, reduce costs, and enhance satisfaction level of consumers (Chen, 13).

These are the standard goals for which RFID is used in supply chain management industry.