Wal-Mart has revealed it plans to start rolling out RFID technology in its European operations from 2006.

Wal-Mart manager of RFID strategy Simon Langford told a conference in London this week it would have rolled out the radio barcoding technology to all 2,000 stores and all suppliers in the US by the end of that year.

It would then introduce RFID in Canada and Europe.

Langford said Wal-Mart wanted to create a “cookie cutter” model for RFID implementation, working with American suppliers.

It has already told its top 100 suppliers to implement RFID by January 2005. It will hold a briefing in June to communicate its demands to its next 200 suppliers. Their experiences would be used as a model for other suppliers in a speedy global roll-out of the technology.

He said the radio barcode tags would improve inventory and drive supply chain efficiency. They would eventually enable the “Holy Grail” of automated checkouts in around 10 to 15 years. He advised UK suppliers to start experimenting with RFID immediately. “Don’t wait for the call,” he said.

Speakers from Tesco, Nestlé and Gillette also lauded RFID as a revolutionary technology at the conference.

Tesco UK IT director Colin Cobain said RFID was “going to transform the industry”.He said supply chain efficiency could be improved and Tesco would be able to reduce prices.

Tesco plans to roll out RFID to the back doors of all stores and all distribution centre docking doors this year. It will also start a roll out with suppliers from September, by product area. Six major suppliers will be involved in the first phase.

Other suppliers will be given a minimum of six months’ notice before their product area comes on stream, said Cobain.
Anne Bruce