Electronic Product Codes
At Walmart, we’re committed to serving our customers and providing them with the best products at the lowest possible price. We’re constantly looking for ways to improve the way we operate our stores, clubs and distribution centers and making Walmart an even better place to work and shop. Bringing new technology into our storesAs a reflection of our efforts, we’ve begun testing the efficiency of using electronic product codes (EPC) to track items from manufacturers, to distribution centers, to our stores and clubs. The initial launch was so successful that we‘ve brought additional stores and clubs online with the EPC initiative, bringing the total to almost 1,000 locations, and we expect to expand to more stores. As we look at the success of our early efforts, we’re proud of the value we’re bringing to Walmart, our suppliers, and ultimately our customers. EPC tags increase efficiencyAn independent study, completed in October, 2005 by the University of Arkansas, concluded that the impact EPC had on merchandise included: - Out of stock events were reduced up to 16 percent
- Out of stock items were replenished three times faster than non-tagged items
- Stores with EPC were 63 percent more effective in replenishing tagged items than control stores
- Stores with EPC experienced a 10 percent reduction in manual orders, which reduced excess inventory.
EPC tags get merchandise on the shelves fasterEPC has been effective in helping to make sure promotional displays are delivered and in place so products are in our stores and ready for sale when the advertising begins. It shortens the amount of time it takes for new items to make it to store shelves. In fact, the process is three times faster than for non-tagged products. EPC also aids in proof of delivery and purchase order reconciliation by providing visibility of product even after it has left the receiving dock. EPC tags will transform the way we do business"Recent internal analysis of our ongoing efforts reinforces the value of this technology for Walmart, our suppliers, and ultimately our customers," said Rollin Ford, executive vice president and chief information officer for Walmart. "[EPC] tags will transform the way we do business and I’m privileged to be a part of this technology that’s bringing positive change to Walmart [and] the retail industry." More than 600 suppliers are currently using the technology. “We continue to work with suppliers to help them see the vast potential of [EPC]," said Ford. "We're already fully convinced of its value and are ready to step up the pace since we know we’re only touching the tip of the iceberg when it comes to the benefits of this technology." Costs go down and performance improvesAs predicted by industry experts, the cost of the technology continues to fall while performance continues to improve. Walmart expects this trend to continue, thanks to significant work by EPCglobal and its members. About EPCglobalEPCglobal Inc. is an international, nonprofit group focused on developing industry-driven EPC standards. Its members are comprised of manufacturers, technology providers, and major retailers.
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