The nations largest retailer has always been an aggressive adopter of information technology. In 1995 they launched an campaign to implement a common IT strategy that would manage sales to inventory across all stores and report back to headquarters. accord to Kevin Turner, the CIO at the time Each Wal-Mart store is electronically connected via a secure private network to Wal-Mart headquarters in Bentonville, Ark. They are able to track sales volume of separately individual item rung up on bills registers at each store and automatically reorder and refill inventory, across thousands of stores (Lundberg 2002). This implementation was extremely powerful based on the volume of sales that Wal-Mart deals with on a daily basis. It provided timely, perfect data that enabled management to make critical business decisions. This musical arrangement was based on proprietary in house create supply chain management software paired with efflorescence of sale systems (POS) that utilized universal product barcodes. Though this system was extremely effective and served as a competitive advantage to Wal-Mart they tangle it left them entirely reactive when it came to loss prevention.
tally to CIO, Kevin Turner he felt that they spent 20 share of their time on prevention and 80 percent on recovery or dealing with problems after the feature.(Lundberg 2002) They also felt that they were seeing issues with latency in inventory and fulfillment. For this former they launched an enterprisingness to implement radio frequency identification (RFID).
How the company has benefited and/or lost due to the changes
Five years after Wal-Mart announce its major RFID initiative, less than 1% of its suppliers use the technology. The major reason why RFID technology has not taken off with the suppliers is the fact that it remains an expensive technology. The cost of each tag is about 40 cents and vendors typically have to pay hundreds of thousands of...If you want to land a full essay, order it on our website: Orderessay
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