Excerpt from:  North America Supply Chain and Logistics Strategy
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January 25, 2008

Wal-Mart to enforce a $2 surcharge on pallets that do not have a RFID tag

Wal-Mart is pressuring its suppliers to implement RFID technology for products coming into their warehouse. By implementing a surcharge they will not only cover their costs of putting an RFID tag on the pallet, but will force their suppliers to determine

Wal-Mart is a leader in the industry pushing for their suppliers to use RFID technology.  Three years ago they started pressuring their supplier to use RFID to help optimize their warehouse and distribution operations.  As of January 30th Wal-Mart will enforce a $2 charge for every pallet which does not have a RFID tag coming into the Texas warehouse destined for Sam’s Club.  The goal is to have all 22 distribution centers running with RFID at an item level by 2010.  Wal-Mart states that the fee is to cover their cost of putting an RFID tag on the pallets. 

Currently it is believed that over 15,000 of Wal-Mart’s suppliers do not use RFID technology.  Suppliers seeing a $2 charge per pallet may now invest the time to determine how to comply with Wal-Mart’s RFID rules. 

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