Wal-Mart Stores Inc. said its fast-growing use of radio-transmitting inventory tags has helped boost sales by keeping shelves better stocked with key merchandise.
The use of RFID, or radio-frequency identification tags, has reduced out-of-stock merchandise by 16 percent at the company's stores that have begun to use the technology over the past 12 months, Linda Dillman, Wal-Mart's chief information officer, said at the company's annual analyst meeting Wednesday. Wal-Mart has been able to restock RFID-tagged items three times as fast as non-tagged items, she said.
RFID tag: A microchip attached to an antenna that is packaged in a way that it can be applied to an object. The tag picks up signals from and sends signals to a reader. The tag contains a unique serial number, but may have other information, such as a customers' account number. Tags come in many forms, such smart labels that can have a barcode printed on it, or the tag can simply be mounted inside a carton or embedded in plastic. RFID tags can be active, passive or semi-passive.
For more info on RFID
RFID Journal.com
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