Sam’s Club, which is the membership warehouse retail arm of Wal-Mart, sent a letter to all of its suppliers last month “rolling back” its ambitious plans to achieve Radio-Frequency Identification (RFID) tagging of all pallets, cases and sellable units by 2010. The announcement is reminiscent of its parent company, the world’s largest retailer, attempting a similar initiative. In November 2003, Wal-Mart asked its top 100 suppliers to be ready to mark deliveries (boxes and pallets) with RFID tags by January 2005, which it unfortunately failed to achieve except with a few suppliers. (Wailgum 2008) The article, “Sam's Club Letter Outlines Changes to RFID Requirements,” which appeared in the January 26, 2009 issue of RFID Update, discusses Sam’s Club initiative in light of its latest announcement. Also consulting other articles regarding the RFID initiatives of Sam’s Club and Wal-Mart, as well as other RFID ancillary materials, it will become clear why Sam’s Club is looking for supplier adoption of RFID technique, what benefits it looks to realize and disadvantages it hopes to minimize.
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