By Alorie Gilbert
Staff Writer, CNET News.com
Wal-Mart Stores and its largest 100 merchandise suppliers plan to meet this week to plot the implementation of a new high-tech inventory-tracking system, a project expected to send ripples across the retail industry.
The meeting, scheduled for Tuesday near Wal-Mart's Bentonville, Ark., headquarters, follows the megaretailer's announcement in June about its foray into a technology known as RFID (radio frequency identification). At the time, Wal-Mart asked its top 100 suppliers to join the effort and, starting Jan. 1, 2005, attach RFID tracking "tags" to the millions of cases and containers they ship to the company.
Among the companies congregating in Bentonville for a full briefing from Wal-Mart are industry giants Kraft Foods, Procter & Gamble, Tyson Foods and Unilever, a Wal-Mart representative said. Some big names in information technology will also be in town, with IBM, Intel, Microsoft, Philips Semiconductor and SAP participating in an RFID "tech expo" Wednesday.
RFID tags, which contain special microchips and antennae, are designed to automatically relay to computers precise information about the contents of product packages and containers. The technology is expected to reduce much of the manual labor and human error involved in tracking inventory via bar codes and could save Wal-Mart close to $8.4 million annually, according to investment research firm Sanford C. Bernstein.
But less clear are the benefits for Wal-Mart's suppliers, many of whom already have highly accurate inventory systems, according to a recent report from IT analyst firm AMR Research. It's a critical question, given that large suppliers will spend an average of $13 million to $23 million to comply with Wal-Mart's plan, AMR Research estimates.
"Other than maintaining positive relationships with Wal-Mart, almost no company attending the symposium could readily identify immediate value in implementing the technology," the report states.
A spokesman for the retailer dismissed the notion, insisting that the technology will be a boon to suppliers as well as to Wal-Mart. "Analysts always have to come up with something," Wal-Mart spokesman Tom Williams said.
The benefit to manufacturers comes only when RFID is deployed in stores to decrease stock-out situations, AMR analyst Kara Romanow said. But because of costs and privacy concerns, that could be 10 years away or more, experts said.
Procter & Gamble, which has been deeply involved in the testing and development of retail RFID systems for the last several years, is optimistic that RFID will be more than just another cost of doing business with the world's largest retailer.
"We see that this technology has huge benefits, even at the case and pallet level, in helping us to track our product and helping us understand how long does it take to get through the supply chain," a P&G representative said.
http://news.com.com/2100-1008-5101416.html?tag=nefd_hed
By Ulfelder, Steve
October 7, 2003
RFID transfers data wirelessly between a minuscule transceiver and a transponder, or "tag," that can be attached to just about anything -- an item in a store, a shipping container, even livestock.
..."On June 6, I walked around and wiggled the smart shelf [in a Brockton, Mass., Wal-Mart, where the test was about to launch]. The next day, it was gone," proudly reports Katherine Albrecht, executive director of one of those groups - Consumers Against Supermarket Privacy Invasion and Numbering (CASPIAN).
A month later, CASPIAN called for a boycott of Gillette, darkly dubbing the RFID transceivers embedded in razor-blade packaging "Gillette spy chips." A Gillette spokesman dismisses the boycott, saying the company has no intention of tracking individual customers and their purchases.
Gillette also denies that the privacy groups had any influence on the decision to cancel the smart-shelf trial, as does Wal-Mart. They say the companies opted instead to focus their attention farther up the supply chain, at the palette and case levels.
Clearly, though, groups such as CASPIAN have had a sobering effect on these companies and other businesses working to improve supply-chain management through RFID. And few industry watchers doubt that privacy-group pressure will force companies to examine the consumer-privacy ramifications of the technology and establish a code of conduct. Public protest also may slow RFID adoption by cautious companies...
http://www.newsfactor.com/perl/story/22439.html
Tue September 30, 2003 04:03 PM ET
AMSTERDAM (Reuters) - Radio signals for the next generation of mobile phone services can cause headaches and nausea, according to a study conducted by three Dutch ministries.
The study, the first of its kind, compared the impact of radiation from base stations used for the current mobile telephone network with that of base stations for new third generation (3G) networks for fast data transfer, which will enable services such as video conferencing on a mobile device.
A base station, which usually covers a "cell" area of several square kilometers (miles), transmits signals to mobile phones with an electromagnetic field.
"If the test group was exposed to third generation base station signals there was a significant impact ... They felt tingling sensations, got headaches and felt nauseous," a spokeswoman for the Dutch Economics Ministry said.
http://www.reuters.com/printerFriendlyPopup.jhtml?type=technologyNews&storyID=3534786
(from Apr. 08, 2003)
In a move that may have brought unwanted attention to a burgeoning industry, Italian clothing maker Benetton Group said it has not embedded any radio frequency identification tags in any of its clothing.
The group was responding to recent press reports that the company planned to incorporate radio frequency identification tags -- wireless transmitters the size of a grain of sand -- into the labels of its clothes to track garments worldwide.
"Instead of providing answers, they backed out of the deal," one industry analyst said of the unexpected announcement. "It is a step back for the RFID industry."
Like a few other industry insiders, the analyst did not want to be named. Some were concerned that the media had spread misinformation about how RFID tags really work, pushing Benetton to hastily release its statement.
About two weeks ago, Dutch semiconductor maker Royal Philips Electronics said it would provide the chips to power Benetton's RFID system, igniting a barrage of media coverage speculating how the technology would be used. Benetton said the chips' sole purpose was to track its clothes, although privacy advocates feared it could be used to locate customers and market to them.
After one consumer group called for a boycott of Benetton clothing, the Italian company issued a statement on Friday retracting its plans and distancing itself from Philips...
http://www.wired.com/news/wireless/0,1382,58385,00.html
The "REAL TOTAL AWARENESS" Agenda
Facing increasing resistance and concerns about privacy, the United States' largest food companies and retailers will try to win consumer approval for radio identification devices by portraying the technology as an essential tool for keeping the nation's food supply safe from terrorists.
The companies are banding together and through an industry association are lobbying to have the Department of Homeland Security designate radio frequency identification, or RFID, as an antiterrorism technology.
http://www.wired.com/news/privacy/0,1848,59624,00.html
02:00 AM Sep. 15, 2003 PT
A consortium of retailers and consumer goods companies plan to unveil the replacement for the bar code next week. The upgrade will use a controversial radio technology that critics say will significantly expand the powers of retailers to track the whereabouts of their goods and the people who buy them...
http://www.wired.com/news/privacy/0,1848,60408,00.html
Gillette nixed their inclusion in this hidden agenda because of boycott.
http://indymedia.org/front.php3?article_id=342713&group=webcast
| Sun | Mon | Tue | Wed | Thu | Fri | Sat |
|---|---|---|---|---|---|---|
| 1 | 2 | 3 | 4 | |||
| 5 | 6 | 7 | 8 | 9 | 10 | 11 |
| 12 | 13 | 14 | 15 | 16 | 17 | 18 |
| 19 | 20 | 21 | 22 | 23 | 24 | 25 |
| 26 | 27 | 28 | 29 | 30 | 31 |