Item-level RFID Tagging and its Impact on Retail Chain Manufacturers

Item-level RFID tagging is gaining traction in the retail industry, and its impact on manufacturers and suppliers is becoming increasingly apparent. In February 2022, Walmart announced a new tagging mandate that requires a broader range of suppliers and manufacturers to implement RFID tagging for their products. This mandate has sparked a renewed interest in RFID tagging across the industry. Those Walmart suppliers have until September this year to comply with this new mandate.

Why item-level RFID tagging?

Thanks to the implementation of RFID technology, Walmart has experienced an increase in inventory accuracy and a reduction in labor hours required for counting inventory items. With the latest mandate, Walmart aims to improve its inventory data accuracy by at least 25% compared to the previous year. This cost reduction has significantly improved Walmart's operations, and other retail chains such as Target and Nordstrom have also followed this trend.

The benefits of RFID tagging are not limited to large retailers. Even small retailers have expressed great interest in implementing this technology. Once again, RFID is changing the pace of item-level tagging.

How does it impact retail chain manufacturers?

It is clear that Walmart's suppliers, who have yet to comply with the mandate, have a long journey ahead of them. The urgency to comply with the mandate is not surprising, and we have received numerous inquiries from both Walmart and non-Walmart suppliers seeking guidance on how to comply. Often, these suppliers are overwhelmed by the amount of information and steps required to adhere to the mandate.

While Walmart may be an early adopter of this mandate, we are seeing many other big brand retailers follow suit. As a result, suppliers who comply with Walmart's mandate may have an advantage in the marketplace, as RFID technology becomes more widely adopted in the industry.

What’s the end goal of Walmart?

This whole RFID mandate of Walmart is necessary to improve the following:

• Increased real-time visibility of total inventory
• Improved online order fulfillment
• Advocate better customer experience and loyalty
• Decrease labor hours in cycle counting

These are only a few reasons Walmart pursued this RFID item-level mandate. As these things improve, the better Walmart gets a hold of consumer behavior coming from an accurate in-store inventory count.

How does it affect manufacturers?

Some Walmart suppliers may view the mandate as a complex and overwhelming process that adds additional expense and labor. However, the benefits of implementing RFID technology far outweigh the investment of time, energy, and cost required. The advantages of an RFID item-level tagged inventory are consistent across the board, from manufacturing to the in-store level. Manufacturers can benefit from improved visibility, tracking of a product's life cycle, and eliminating tedious manual counts before shipping, among other improvements resulting from RFID tagging at the source.

SimplyRFiD aids manufacturers in establishing an RFID inventory management system at the source

For many manufacturers that have yet to comply with Walmart's mandate, the process of implementing an RFID-tagged inventory system can seem daunting. However, the most challenging part of any new initiative is often taking the first step. At SimplyRFID, we aim to make it easy for retailers and manufacturers to take that first step toward implementing RFID technology in their business operations.

Our products and services, such as the Wave: Audit and Accurate Inventory Kickstart campaign, provide the necessary tools to build a system that maximizes the benefits of RFID technology. We guide manufacturers through the proper methodology, execution, and maintenance of these products, from project initiation to completion.

By partnering with SimplyRFID, manufacturers can reduce the complexity of implementing RFID technology and focus on reaping the benefits of improved inventory accuracy, increased supply chain efficiency, and cost savings. Our expertise and support ensure that manufacturers can comply with Walmart's mandate and stay ahead of the curve in the rapidly evolving retail industry.

SimplyRFiD’s Wave: Audit for Manufacturers

The Wave: Audit product is a tool for manufacturers already compliant with RFID item-level tagging using SGTIN and UPC. It makes verifying the count of any UPC-labeled items seamless through the app. The app is released in RFID Journal Live in Orlando, Florida.

We make it simple and easy

The retail world is changing. Many manufacturers and retailers are trying to find new and exciting ways to integrate their inventory data with RFID inventory systems. One of which is the Walmart mandate that recently expanded to many other supply chain verticals.

SimplyRFiD’s products and services, such as the Wave: Audit and Accurate Inventory Kickstart campaign, are the tools necessary to build a system where you can maximize the use of RFID technology in your business. We help retailers and manufacturers by guiding them through the proper methodology, execution, and maintenance of said systems.

Contact our sales team for a scheduled product demo and any other additional information.