Wal-Mart Expands Electronic Product Code Goals; Retailer Wraps Up Latest Briefings With Top 300 Suppliers
6/17/04
BENTONVILLE, Ark., Jun 17, 2004 /PRNewswire-FirstCall via COMTEX/ --
In a series of briefings this week with its top 300 suppliers, Wal-Mart unveiled expansion plans for its groundbreaking electronic product code (EPC) initiative.
"We discussed implementation plans with our next top 200 suppliers," said Linda Dillman, executive vice president and CIO for Wal-Mart Stores, Inc. "Over the next 16 months, we also plan to significantly increase the number of Wal-Mart stores and SAM'S CLUB locations where customers can benefit from this revolutionary technology."
Wal-Mart's top 100 suppliers -- plus 37 volunteers -- are already working towards meeting a January 2005 milestone to be live in North Texas. Following that, the retailer outlined its next steps:
June 2005 Live in up to six distribution centers Live in up to 250 Wal-Mart stores and SAM'S CLUB locations October 2005 Live in up to 13 distribution centers Live in up to 600 Wal-Mart stores and SAM'S CLUB locations January 2006 Next top 200 suppliers begin tagging cases and pallets
The retailer is currently working with suppliers to determine in which geographical region the expanded EPC implementation will occur.
Wal-Mart launched its initial implementation on April 30 in the North Texas area. Cases and pallets of 21 products from eight suppliers are being shipped to Wal-Mart's Sanger, Texas, distribution center and then onward to seven local Supercenters with radio frequency identification, or RFID, tags attached. This technology allows retailers greater inventory visibility from supplier to distribution center to a store's backroom.
Wal-Mart initially announced its EPC initiative in June 2003. At the time, the company stated that the first phase of implementation would involve its top 100 suppliers tagging cases and pallets of products headed to three Dallas/Fort Worth area distribution centers by January 2005. Since then, an additional 37 suppliers have voluntarily asked to meet that same milestone.
The primary consumer benefit expected during initial EPC adoption is better merchandise availability. Wal-Mart expects to do a better job of having the right product in the right place at the right time, improving the customer shopping experience.
Dallas Pilot Update
Wal-Mart said its Dallas pilot is progressing as planned.
"We're seeing the positive results we expected," Dillman said. "We also anticipated hitting a few minor bumps in the road, which has happened. The whole reason for a pilot is to fix any last minute issues and clear the path for a smooth implementation. That's what we're doing and we're looking forward to January 2005 with great expectations."
Moving forward from this point, Wal-Mart expects the number of suppliers tagging cases and pallets for the pilot to expand every few weeks. Accordingly, consumers may soon see additional products displaying the EPCglobal symbol.
It is expected that many of these will be electronic products or other large items such as bicycles or lawnmowers. In all instances, the cases will have tags only on the outermost packaging, Wal-Mart will notify consumers of the tag's existence and customers will retain the choice of keeping or disposing of the tag post-purchase.
About Wal-Mart Stores, Inc.
Wal-Mart Stores, Inc. (NYSE: WMT) operates Wal-Mart Stores, Supercenters, Neighborhood Markets and SAM'S CLUB locations in the United States. Internationally, the company operates in Puerto Rico, Canada, China, Mexico, Brazil, Germany, United Kingdom, Argentina, and South Korea. The company's securities are listed on the New York and Pacific stock exchanges under the symbol WMT.
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