Presentation for OIM Group 2

1. In Wal-mart Mod 2010 E2 Group 2 Presentation

2. It is wireless technology that enable users to identify and transmit information from a tagged project. Not every object needs to be bar coded (different from old bar-coded system) Relatively new technological development. Not widely used due to expensive implementation of the system. What is RFID?

3. How does it function? A reader picks up data from a barcode Sends it to software known as “middleware” Middleware classifies raw data After classification the same software interprets the data Managers gather the data and derive applicable information

4. Effectively used in supply chain management Also extensively used in manufacturing, production, banking, oil exploration and shipping logistics. Where can RFID be used?

5. Why Change to RFID Increased efficiency and transparency in their supply chain, management and payment systems. Not necessary to physically locate goods and objects More effective stock controls Inventory reduction Less stock outs Reduced purchasing costs Reduced theft Reduction in overheads Less employees required to manage stock Less security costs

6. The Controversial Side of RFID Implants ? RFID on drivers licenses ? Tracking of products after leaving the store ? Security of people ?

7. Issues to be Aware of Non-removable tags keep on transmitting Retailers can scan customers who carry RFID marked items, later recognizing them in their shops No RFID regulations adopted globally. Problematic -import and export with tagged objects Underestimated training cost to use new system by Wal-mart

8. (2003) Top 100 suppliers need to convert to RFID by 2005 at case level Supplier covers all the cost installing RFID approx 8 million dollars (resulted in slap and ship - no value added) Price of tags high – supplier carries cost (2007) Implemented with select group of suppliers Used buying power to reduce tag prices Improving the value proposition by labelling individual items Wal-mart strategy 2003 and 2007

9. Wal-mart as a market leader will help to sustain RFID in retail Forced implementation strategy in 2003 not successful Other organisations looked at Wal-mart and learned from their implementation mistakes Real time and efficient information within supply chains is crucial for success It is only a matter of time Conclusion