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Abstract
The following project is devoted to the peculiarities of RFID technology and its implementation into the functioning of Walmart to attain better outcomes and generate a competitive advantage. The given innovation allows better tracking and data sharing by providing up-to-date information about the current location of a certain product or object and its peculiarities. For this reason, using RFID technology is viewed as an advantageous method to simplify existing tasks, such as supply chain management and product tracking. For Walmart, using RFID, it is possible to enhance product transportation and storage, allow better food delivery, and increase the effectiveness of the supply chain. It is expected that the use of the technology will reduce operational costs and contribute to the further development of the brand via better relations with clients and suppliers.
Introduction
The use of innovations helps companies to make their work more effective, minimize the effort and costs needed to perform specific tasks, and generate a competitive advantage. Radiofrequency identification (RFID) is one of the technologies helping to attain all benefits mentioned above. It belongs to the cohort of Automatic Identification and Data Capture (AIDC) technologies helping to determine objects, collect specific data about them, and translate this information into existing computer systems with no human participation (Smalling CET, 2021). RFID consists of a tag, RFID reader, and an antenna working together to convert radio waves into usable data (Smalling CET, 2021). It is an effective technology offering advantages to various businesses. Today, numerous companies implement RFID into their functioning. The technologys improved activities include inventory and supply chain management, asset and personnel tracking, and counterfeit prevention (Smalling CET, 2021). The proposed paper is devoted to analyzing RFID technology regarding Walmart and the improvement of its supply chain management and leading activities.
Background
Walmart is one of the greatest companies working in the retail and wholesale business. It has a chain of supermarkets, discount department stores, and grocery facilities (Walmart, 2021). In 2021, it had 10,566 stores in 24 countries, meaning that it is a global corporation focused on increasing its international presence and cooperation (Walmart, 2021). Following its report, Walmart generated $548 billion in revenue, making it the worlds biggest company by income (Walmart, 2021). It also has about 2.2 million employees and partners located in different parts of the globe (Walmart, 2021). The company also offers delivery services providing clients with high-quality products. At the moment, the brand also focuses on implementing innovative decisions into its functioning to create the basis for future development and growth. In such a way, these characteristics evidence that the corporation has needed resources to facilitate the use of RFID technology and make it part of its daily operations.
The companys main products and services are extremely diversified to meet the growing demands of its target audience. These stores offer multiple items, such as family apparel, health and beauty aids, home furnishings, electronics, sports goods, lawn and garden items, pet suppliers, automotive products, and hardware (Walmart, 2021). This broad choice is one of the guarantees of Walmarts ability to function in different segments and provide clients with an opportunity to select the desired good, not leaving a particular marketplace (Walmart, 2021). The primary product, retail service, is also distributed using e-commerce forms. It means that the corporation has a sophisticated supply chain necessary to ensure all products and services are delivered to the final user in time. Additionally, it increases responsibility and demands specific attention to customer service as the central aspect for better performance.
The proposed implementation describes the benefits of using RFID to enhance supply chain management in Walmart. The possible applications include tracking the products and items to improve their storage and attain more accurate positioning (Walmart, 2021). Moreover, better control will be achieved by realizing their current statuses in real time. The visibility of the whole supply chain can also be upgraded by monitoring the logistics companies work and the way warehouses function. At the same time, there is another significant area that can benefit from using RFID, which is customer relations. RFID can be used to align more effective product delivery by tracking the orders, calculating their transportation time, and informing clients about their states (Walmart, 2021). In such a way, using RFID technology, Walmart can improve the outlined areas and benefit from the better outcomes vital for its further growth.
RFID benefits and issues to Supply Chain
RFID helps increase operational efficiency because of the reduced need for monitoring, reduces the risk of human error because of the automated data input, leads to reduced capital costs, provides access to real-time data, and creates the basis for enhanced decision-making. Under these conditions, integrating RFID technology into a certain companys work can help it acquire numerous benefits. The current state of information sharing shows that the use of the discussed method can help firms to evolve and enhance their cooperation. Additionally, RFID will create the basis for future improvements by offering radical changes in logistics and supply chain management. For this reason, it is possible to use the technology to attain improved outcomes.
Current state of Information Sharing
Some of the disruptions within the supply chain are more commonly due to a lack of communication between separate parties. Each company has its own network of systems to rely on for inventory management, purchasing, and managing. While companies plan for their peak season when sales begin to increase, outsourcing to a third party has become a convincing option to take. After much research has been conducted to make the best selection, the different system networks do not communicate outside their organizations to partnering businesses. Besides the initial impact of not being able to locate the specific product, other areas, such as customer service levels and delivery times, will be negatively affected as well. The passing along information through multiple systems from different companies and using that information defines Interoperability (Yee et al., 2012). To increase the visibility to its maximum potential, interoperability must be further reviewed. These are only of several reasons why we should implement RIFD technology.
At this time, there is not a set standard across the board for all members of the supply chain to follow; each company has developed its own systems of preferred use. According to Yee et al. (2012), As the number of information sources is increasing, lack or interoperability becomes worse than before (p.25). For example, there is a relationship with a particular vendor lasting many years. Now, this vendor is having issues that cannot be afforded. Looking for a new vendor, a customer will find that he/she will no longer be able to utilize the current network. It seems that in the case of using an information technology vendor is not a one size fits all scenario (Yee et al., 2012). Instead of taking risks to update to modern technology, companies are only fixing their issues one piece at a time.
Future State of Information Sharing
There are a variety of best practices for the implementation of RFID technology, but none has been convincing enough to persuade businesses to take part in the new strategy. Either way, each plan should consider the assignment of decision rights, performance evaluation systems, and compensation systems to cover the critical components of an organizations architecture (Chalyvidis et al., 2013). The Internet of Things (IoT) has allowed for much of the information to be sent to the Cloud, a system that allows all parties involved to be able to see the same information when others are receiving it. As one of the key technologies involved in IoT, RFID is needed in almost every industry.
Logistics and Tracking
Implementation of RFID technology can also help to improve the supply chain by giving more attention to logistics issues and enhancing it. The RFID tag can be equipped for products that should be transported to ensure the company has correct knowledge about their location at the moment and plan future warehousing operations. This approach will contribute to the enhanced relations with suppliers as all movements of the ordered products will be realized, and no need for extra clarifications will emerge. Furthermore, as part of the new information-sharing system, RFID will provide Walmart with critical information about the current supply and where additional orders to meet clients demands are needed. In such a way, the technology offers Walmart the potential for future improvement and eliminating some of the current problems and risks, which justifies the need for its use to meet the existing purposes.
Needs for RFID Technology Integration
Today, numerous companies implement RFID into their functioning. The activities improved by using the technology include inventory and supply chain management, asset and personnel tracking, and counterfeit prevention (Yuan et al., 2017). RFID helps to increase operational efficiency because of the reduced need for monitoring, reduces the risk of human error because of the automated data input, leads to capital costs reduction, provides access to real-time data, and creates the basis for enhanced decision making. Under these conditions, integrating RFID technology into a companys work can help it acquire numerous benefits.
The necessity to use RIFD as the method to attain positive change is also evidenced by relevant statistics. First, the existing research shows that manufacturers and distributors who implement the given technology benefit from an 80% improvement in the accuracy of shipping, distribution, and delivery (Smalling CET, 2021). The shift towards using this innovation also contributes to enhanced supply chain management and reduction in costs that traditionally comprise a significant part of any companys budget. RFID also helps to attain 90% improvement in receiving time, which is vital for international corporations focused on stable relations with customers and meeting their requirements (Jones & Graham, 2018). Retail companies, such as Walmart, can also expect the growth of the inventors visibility and availability from 2 to 20% due to the RFID technology (Jones & Graham, 2018). Finally, the inventory count accuracy grows from 63 to 95% under the impact of more effective data collection guaranteed by RFID (Jones & Graham, 2018). The given factors demonstrate the critical need for integrating RFID technology into the work of the selected company and making it part of its processes.
Altogether, the outlined factors justify the necessity to integrate RFID into the work of Walmart. The company has the basis for shifting towards the extensive use of technology. First, it is a successful global corporation with available resources that can be used to create the project and new strategies and finance them. Second, Walmart has a significant supply chain needed to guarantee the delivery of products to about 200 million customers in about 11,000 stores globally (Walmart, 2021). It implies an extremely high sophistication of all processes and management. To simplify the task and improve supply chain management, it is necessary to integrate RFID technology to attain better outcomes. Finally, it has numerous facilities located in various regions, meaning that RFID can help to align better interaction between them and avoid mistakes or delays. In such a way, the proposed technology integration plan rests on the current situation and Walmarts need for positive change through innovation and replacing outdated approaches with new ones.
Business
Business needs and aspects of Walmarts functioning belong to the central factors justifying the need for using RFID technology. Thus, the need to preserve the desired level of customer service and ensure they are satisfied with the provided service and products. In an annual report, Walmart (2021) states that customers go digital today, meaning that innovative forms of shopping and cooperating have become more dominant today. It means that the business needs include the necessity to provide clients with demanded goods in time and avoid delays or mistakes. However, regarding the growing number of customers and the sophistication of their demands, this task becomes extremely complex and requires additional planning and resources. It means that RFID technology integration might be viewed as a potentially strong option for meeting the existing business needs and helping Walmart generate a competitive advantage.
Smart labels and RFID tags can be used as a tool for enhancing Walmarts performance and supporting the high level of customer relations. First, delivery and online cooperation can be improved by using technology. By equipping orders with labels, the company can ensure better tracking and monitoring options for clients to realize the current location of their orders and respond to them. RFID-assisted product delivery is a method that is widely used by other companies (Jones & Graham, 2018). Statistics show that the firms employing this approach benefit from increased client satisfaction and their readiness to continue cooperation with the brand (Jones & Graham, 2018). For this reason, portable RFID devices with the ability to translate up-to-date data have become an alternative to traditional methods. It will help Walmart to guarantee in-time and fast delivery to clients.
The business needs also include the demand to preserve meaningful cooperation with all partners. For Walmart, it means that hundreds of associates in different parts of the globe should remain accessible (Walmart, 2021). Moreover, it is vital to continue the development of partnerships and relationships with partners as the key to future progress. RFID technology is a key to resolving this problem. It allows tracking and information exchange, which is essential for global corporations, and the inclusion of new partners into the companys work. As stated previously, RIFD ensures a boost in accuracy and product tracking, which means that fewer mistakes will occur.
Altogether, the business needs relevant at the moment might be resolved by using RFID technology. The better results are evidenced by the existing research and the numerous successful examples. Thus, using this sort of device, Walmart can generate a competitive advantage by enhancing its relations with clients, meeting their needs, and informing them about the current state of the order. The beneficial character of the technology will help Walmart to move forward towards the achievement of new goals and improve its global presence. For this reason, it is possible to recommend implementing the technology into the functioning of the corporation to create the basis for positive change.
Supply Chain and Logistics
Supply chain management is one of the most complex and sophisticated tasks global corporations such as Walmart should perform. Departments in different countries, developed networks and infrastructure, and multiple facilities introduce the need for specific management efforts necessary for establishing a practical framework (Chopra, 2018). Thus, the task becomes more complex for global companies as the scope of challenge increases. Under these conditions, RFID should be viewed as one of the possible solutions to the given problem. The current body of research demonstrates the technologys ability to enhance supply chain management. Thus, upgrading shipping and picking accuracy is one of the major advantages to supply chain management (Oghazi et al., 2018). By combining RFID hardware and software, corporations can verify shipments, plan future deliveries, and ensure the absence of chargebacks and cost reduction (Oghazi et al., 2018). It will have a positive influence on supply chain management.
Second, RFID is a critical technology for improving warehouse management, an integral part of the supply chain. Thus, statistics show that by using labels to manage storing places and distribute goods regarding existing plans, it is possible to increase the accuracy, visibility, and availability of inventory (Oghazi et al., 2018). It will lead to the reduction of warehousing costs and their use in different projects. Furthermore, inventory and products count also increase, which is attained due to the enhanced opportunities for data sharing and transfer (Oghazi et al., 2018). The integration of RFID helps to increase inventory count rates from 200 to 12,000 items per hour, which can be viewed as a significant advantage of this technology (Oghazi et al., 2018). It justifies the need to use it for the supply chain management.
Another way supply chain management is improved by RFID is guaranteed by better data transfer and processing. Thus, following the existing research, using these technologies, companies acquire the chance to become more informed about the current state of their assets, available products, and new demands (Oghazi et al., 2018). Moreover, there are numerous cases when available products become inappropriate for further use because of the violation of storing terms. There is also a high chance of human mistakes resulting in disregarding particular items for prolonged periods. These negative outcomes might be eliminated by using RFID. First, such labels allow firms to improve data input and consider all available materials. Moreover, they help to distribute products by selecting the most suitable places for them.
Visibility guaranteed by RFID is also related to relations between supply chain partners. Following the dominant idea, enhanced collaboration is key to better results, and the absence of delays and misunderstandings (Oghazi et al., 2018). In such a way, RFID labels applied to most of the products transported within a single supply chain might lead to better collaboration and cooperation, which is necessary regarding the global nature of tasks Walmart faces and the constantly growing sophistication of relations at different levels. Under these conditions, RFID should be viewed not only as a tracking device but also as a potent data collection and sharing tool. Its effectiveness comes from the possibility of exchanging up-to-date information and introduce the needed changes if possible. The statistics prove that by adhering to this method, supply chain partners might benefit from better cooperation and coordination their efforts (Oghazi et al., 2018). It is another factor explaining the need for integration and a new strategy.
Recent research also shows that RFID is effective in audit tasks. For instance, companies using this technology report the enhanced opportunity to audit every product arriving from distant locations, which improves the reporting function and allows better planning because of the correct understanding of the current supply (Jones & Graham, 2018). In such a way, the chance of misreads or the lack of a particular good is minimized, which is vital for outcomes (Jones & Graham, 2018). For Walmart and its dependence on correct and on-time supplies, the integration of RFID into its work will create the basis for future improvement via the establishment of the framework for innovative warehouse and suppliers management.
Manufacturing
RFID can also be a useful technology for improving manufacturing processes, their effectiveness, and the costs used by the brand. It means that for Walmart, the integration of this approach might provide multiple benefits. The corporation is a big producer of numerous products, such as fresh products, meat and dairy products, bakeries, and household supplies (Oghazi et al., 2018). The growing demand means that the corporation must devote much attention to manufacturing activities to meet clients needs (Oghazi et al., 2018). Additionally, relations with suppliers can also be viewed as a part of the manufacturing process. Under these conditions, the existing companys needs justify the need for RFID integration as it can be a potent tool for improving all stages of the manufacturing cycle. The relevant body of evidence states that today manufacturers look for innovative ways to optimize operations, reduce expenses, and attain better outcomes (Oghazi et al., 2018). For this reason, more businesses have started to integrate RFID as a potential solution to manufacturing issues.
For Walmart, using RFID in its manufacturing implies several vital aspects. Following Jones and Graham (2018), RFID stickers can enhance tracking in production lines even within the most complex and sophisticated environments. Using the passive tags, the company can monitor, configure, and alter the production steps to meet project requirements (Jones & Graham, 2018). Moreover, as stated previously, inventory management can be enhanced by using RFID. The manual forms of inventory management can be too complex, especially regarding the increased number of products and items that should be considered (Chopra, 2018). Under these conditions, using RFID tags, it is possible to reduce the effort and minimize the risk of error. Finally, another important advantage of implementing these systems is the opportunity to use history logs about previous operations to analyze failures, discover the primary causes for their emergence, and eliminate them. The given advantages show that RFID can be an effective tool to reconsider outdated approaches to manufacturing and replace them with innovative ones.
Walmart, as a large corporation with a sophisticated manufacturing cycle, will benefit from the integration of RFID technology and its extensive use. Following its report, the mistakes in logistics and inventory management are among the main reasons for unplanned spending (Walmart, 2021). It means that the brand needs a method to address these factors and reduce their occurrence. RFID labels and tags used during the manufacturing process will help to resolve most problems of this sort and contribute to enhanced outcomes. The relevant statistics show that giant manufacturers or retailers, such as Amazon or aerospace companies, acquire up to the 70% efficiency boost due to the integration of RFID into supply, logistics, and inventory management (Yuan et al., 2017). It also means that producing stage is controlled by using the information provided by tags (Yuan et al., 2017). From this perspective, the discussed technology becomes one of the most advantageous options for Walmart to attain new levels of excellence and generate a competitive advantage needed to overcome fierce rivalry peculiar to the sector.
Altogether, the outlined factors can be viewed as the major need for RFID technology integration. The potential benefits regarding logistics, supply chain, business needs, and manufacturing justify the necessity to shift toward using these methods. Walmart, as a giant international corporation, has extremely sophisticated networks, supply chains, facilities, and inventory. It means that their effective management requires significant resources and effort. Under these conditions, RFID should be viewed as a potential solution to most problems the company has at the moment. Using tags and labels, it can align the enhanced information processing and transfer, improve relations with suppliers as a part of supply chain management, and reconsider its methods to work with an inventory. At the same time, Walmart can upgrade its customer service and ensure clients will remain satisfied. Under these conditions, the analysis shows that the integration of the given technology into the work of the corporation is explained by its current needs and possible benefits.
Preparation Before Action
The need for integrating RFID technology into the work of Walmart can be fulfilled by creating the integration plan explaining every stage of the change process. However, the successful, positive change demands comprehensive data collection and its analysis to formulate a strategy meeting the existing needs. For Walmart, it means that the data about its business operations, approaches to management, and software used at the moment should be collected and analyzed to select the most applicable option and type of RFID technology. Otherwise, there is a high probability of failure because of the employment of methods that are not potent enough or cannot meet specifications and the companys needs (Cameron & Green, 2019). Additionally, the investment potential of the company and its budget should be considered to avoid wrong decisions or ineffective planning. For this reason, the detailed analysis of the existing needs and expected outcomes is a critical stage of implementing RFID technology into the work of a company to promote positive change.
Business and the Type of Software Currently in Place
As stated previously, Walmarts current business model implies the dependence on multiple suppliers and the effective work of its supply chain model. The company offers its products and retail services to numerous clients living in different parts of the globe. For this reason, its business model and needs depend on the ability to align the constant supply of demanded products, avoid delays, and guarantee the company has stable relations with partners (Walmart, 2021). A significant scope of this task means that for Walmart, it is critical to introduce the demanded changes into the companys work. Chopra (2018) views supply chain improvement as one of the basic factors helping the brand to acquire leading positions. For this reason, a high level of attention is given to innovating logistics, manufacturing processes, and approaches to working with clients. At the moment, Walmart is one of the corporations supporting the continuous reconsideration of its supply chain management methods to remain one of the leaders in the market.
Walmarts current approach to supply chain management and business activities should be investigated to realize the potential for future change and how it should be integrated. Thus, following the companys annual report, it is focused on innovative solutions to ensure there is potential for future enhancement and growth (Walmart, 2021). For this reason, it switches to automated methods presupposing the implementation of specific software to process data and offer it to managers. For instance, Walmart (2021) has a special solution for their stores, using SUSE Linux Enterprise Point of Service as an open-source operating system. Furthermore, Walmarts (2021) supply chain initiative Vendor Management Inventory focuses on improved management of all products within warehouses by allowing manufacturers to perform this task. The company also modernizes its warehouse management system via automation. In such a way, automation and digital management of the inventory allow the company to reduce carrying costs and attain the increased accuracy of warehousing or supply chain and logistics.
In such a way, the company correctly realizes the existing trends and invests in reconsidering its supply chain management methods. Innovation and automation become the central demands of new frameworks. They should provide the opportunity to reduce costs, increase the effectiveness of management, and minimize costs. The companys CEOs proclaim their focus on the integration of innovative methods and the desire to create completely digitalized warehouses with the chance to reconsider supply management processes (Walmart, 2021). For this reason, it is possible to conclude that there is a needed framework for the introduction of RFID technology. Combining new devices with the software simplifies the task of using RFID and improving supply chain management. Walmart has the demanded framework for collecting and sharing information, which means it is ready for significant alteration and positive change.
Type of RFID for the Implementation
The choice of the appropriate RFID technology for integration depends on Walmarts needs and objectives. Thus, at the moment, the differences in frequency band precondition the existence of the three types of RFID. This type can operate in low, high, or ultra-high frequency, meaning they have different radio waves with advantages and disadvantages (Smalling CET, 2021). These features influence the choice of the type of RFID as they introduce specifications for future use and maintenance. For instance, low-frequency (LF) RFID covers frequencies between 30KHz to 300KHz (Smalling CET, 2021). The given peculiarity means that tags have a short reading range of about 10 cm and a low speed of information transmission and reading (Smalling CET, 2021). However, the central benefit of this technology is the high level of resistance to external interference or factors that might impact the signal (Smalling CET, 2021). LF is mainly used for access control because of the short range, meaning that it has limited potential for being used by Walmart.
High-frequency (HF) RFID is another type of device used in the business sector. It operates on frequencies from 3 to 30 MHz, with a reading range between 10 cm and 1 m (Smalling CET, 2021). The comparatively short distance that is covered by this sort of RFID is compensated by the moderate resistance to external factors or interferences. It means that the given option has a broader diversity of possible use; however, it is still limited (Smalling CET, 2021). The possible spheres of application include ticketing, payments, and data transfer for short distances (Smalling CET, 2021). For Walmart, it means that HF RFID can be used only in small locations to track the movement of objects or align the enhanced control of payments (Smalling CET, 2021). However, inventory and supply chain management might require different sorts of devices with the ability to function on longer distances. It is explained by the peculiarities of warehouses, storage areas, and sizes of facilities used by the corporation.
Ultra-high frequency RFID is another type of technology that can be used in the business. This RFID band covers the range of about 300MHz to 3 GHz and possesses a reading range of about 12 meters, making it a more suitable option for large corporations such as Walmart (Smalling CET, 2021). Moreover, such systems are characterized by a fast data transition vital for real-time tracking and monitoring. However, the major disadvantage of UHF RFID is its sensitivity to interference, meaning that it cannot be placed in hazardous or hostile environments as it will precondition the emergence of multiple issues with data transmission. Nevertheless, this type of technology should be viewed as a preferable option for Walmart as it offers the ability to control objects at various distances and can be applied to supply chain processes or inventory management. Additionally, UHF RFID has the potential for future improvement by using passive or active systems.
Passive RFID systems provide companies with numerous opportunities for improving their functioning. Thus, the reader and the reader antenna send a signal to the tag, which uses this transmitted signal to activate and reflect it to the reader (Smalling CET, 2021). Passive RFID technology can work at different frequencies; however, the distance is usually limited to 10 meters (Smalling CET, 2021). However, the absence of the need for a power source, low cost, and simplicity of its use can make passive type a good option for various purposes, such as tracking of goods within the supply chain or inventory management.
Active RFID systems have become more popular today because of the advantages they offer to companies. They have their transmitters and a power source, usually a battery, to broadcast their own signal and tra
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