Trading perception for reality
By Mike Levans, Chief Editor -- Logistics Management, 2/1/2005
Thanks to constant coverage in both the trade and general business press, Wal-Mart's RFID initiative has created such a stir that every time the retail giant opens its mouth, legions of anxious suppliers lean closer to absorb every word.
We too have been listening closely, but we hadn't heard what we were hoping to hear—until now. With the January 1 deadline for Wal-Mart's top 100 suppliers to begin tagging shipments now past, we're finally learning how early perceptions and forecasts compare to reality.
It turns out that sometimes they're pretty far apart. One perception that's proved untrue is that Wal-Mart's top 100 suppliers needed to tag 100 percent of their SKUs by January 1. The reality, according to an ARC Advisory Group report, is that suppliers are tiptoeing into RFID, and most are tagging fewer than a dozen SKUs.
Does this mean Wal-Mart is actually being flexible? Yes, according to spokesman Gus Whitcomb, who spoke to Executive Editor James Cooke for our cover story. (See "Slow but Steady," Page 30.) Whitcomb said the RFID mandate has been widely "misinterpreted" due to widespread press coverage. He also said top suppliers are implementing tagging programs that are "realistic"—and Wal-Mart is okay with that.
Meanwhile, Howard Stockdale and his colleagues at Beaver Street Fisheries are disproving another widely held perception: that only the biggest, most powerful suppliers can afford to take part in Wal-Mart's initiative. Although the seafood distributor isn't one of Wal-Mart's top 100 suppliers, Stockdale simply picked up the phone and volunteered his company for the program. Like the larger suppliers, Beaver Street is taking RFID compliance one step at a time, and Stockdale believes that approach was a factor in the company's successful implementation.
Our cover story takes a first step toward dispelling some of the misunderstandings surrounding Wal-Mart's RFID mandate. Now that the initiative is kicking into action, metrics will begin to emerge, and we'll get an even clearer picture of reality from the experiences of early adopters.
Fast times, helpful changes
February 1 marked the re-launch of www.logisticsmgmt.com, LM's website. You'll see a colorful new header featuring buttons for free magazine and e-newsletter subscriptions, plus a more accessible Search box. We've also added an international logistics and transportation news feed. These are just a few of the many changes we've made, and I encourage you to explore the site's expanded capabilities.
Why the updates? We realize how fast you're moving these days, so we've enhanced accessibility to LM's considerable online resources. Our aim is to help you continue moving forward—and do so better informed.
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