chapter2 section 2 business process{0}

Wal-Mart is one of the biggest retailers in the world. They have often been known for using the latest in technology for their everyday operations. Most Retail chains and other companies including Wal-Mart use the bar code system to help them track and distribute inventory. A pallet would have a bar code and a worker would have to scan the item when it was shipped out to a location. The problem using this technology is that items can go missing due to theft, or can be misplace and it would take time to track them. Also the bar code can get ruined and be unreadable to the scanner. In 2005 Wal-Mart announced they intend to switch over to radio frequency information.

Radio frequency information is a tag that carries a small chip that allows for the tag to be tracked and recorded when it is shipped out and received. The tag will carry information about the inventory, like what the inventory is is, number of items and its destination. When the inventory is shipped out or receive the tag will send a radio signal which a computer will receive to record the data. This allows for items to be tracked at any time preventing theft and misplacement. It also makes the inventory easier to locate which allows for more efficiency.

By making the transition from barcode system to Radio frequency information Wal-Mart changed their business process because they implanted a new system of shipping and receiving there inventory which will make them more efficient, be more cost efficient. This interests me because I work ads a loading clerk and have seen first-hand the disadvantages of using the barcode system and really believe that the radio frequency information will work

Bibliography

Bartle, C. (2004). Wal-mart making first use of smart label technology. Associated press, Retrieved from www.usatoday.com/tech/news/techinnovations/2004-04-30-wallyworld-rfid_x.htm

By Alan Serrano Category: Strategic Decision Making