Essay about Walmart's Use of Rfid Technology

3537 Words Apr 24th, 2013 15 Pages
“Save Money. Live Better. Wal-Mart” is the slogan that most people refer to the retail giant, Wal-Mart. To achieve its company goal and provide customers with the goods they wanted when and where they wanted helped Wal-Mart achieve their competitive advantage. Wal-Mart has become the world’s largest and most powerful retailer with one of the most powerful supply chain. The most important part of Wal-Mart’s supply chain strategy was technology. Wal-Mart has the largest information technology infrastructure of any private company in the world. In 2003, Wal-Mart plans to spend $3 billion over the next several years on information technology. (Gilbert, 2013) Wal-Mart has utilized several information systems throughout the past. Some of these …show more content…
In 2002, Wal-Mart uses the internet for data exchange with its global suppliers. It announced it will deploy RFID technology in 2004. In 2006, Wal-Mart redesigns Walmart.com and starts to experiment with Web 2.0 and social networking. In 2007, Wal-Mart launched site to store service that enabled online customers to pick up merchandise in store. By looking at Wal-Mart’s technology timeline, one can understands that information technology plays a big role in Wal-Mart’s success. (Wailgum, 2007)
According to former CIO Kevin Turner, Wal-Mart has three basic philosophies behind its information system strategy. The first philosophy is to run a centralized information system for all of Wal-Mart’s operations all over the world. They have a dedicated information system department located in Arkansas. The second is to have common systems and common platforms. The third is to be merchants first and technologists second. By keeping information system centralized and running on common platforms, Wal-Mart was able to drive cost down and increase efficiency. Wal-Mart’s processes and systems are generally the same whether if it’s a store in Arkansas, Florida or even England. Wal-Mart is able to transfer employees from one store to another, and the employees were able to pick up right where they left off. This allows Wal-Mart to decrease downtime or startup time in the transition. (Lundberg, 2002)
Radio frequency identification or RFID is one of the most important technologies at

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