The advantage of American retail giant Wal-Mart in the global retail industry lies in the efficiency of its distribution system. The reason is nothing more than actively demanding productivity from science and technology, and generally adopting radio frequency identification technology tags (RFID). At the same time, it constantly innovates its logistics strategy of continuously and quickly replenishing shelves, and constantly introduces and applies modern supply chain management technology, so that the shelves can keep enough goods with sufficient quantity, variety and quality that consumers are eager for, and avoid unreasonable out-of-stock and out-of-stock, thus greatly improving the economic benefits and service efficiency of Wal-Mart's shopping center supply chain in the United States and around the world, and finally creating Wal-Mart's glory today.
Using RFID technology to realize advantages
A research report of American Shipper Research Center at the end of 2005 shows that after Wal-Mart generally adopted RFID tag technology in retail malls and distribution centers in the United States and around the world, the incidence of goods shortage and shortage on the shelves decreased by 16%, thus greatly improving the customer service satisfaction rate. In fact, the so-called RFID tag is nothing more than putting an RFID tag on every kind, even every commodity. The information on the tag is unique, and the technical content far exceeds the bar code. When goods enter and exit the channel, RFID tags can send out wireless signals and immediately transmit the information to RF readers and all links of supply chain management departments. Therefore, the inventory dynamics of related goods on the shelves of warehouses, freight yards, distribution centers and even shopping malls can be seen at a glance.
Wal-Mart's RFID tag technology was developed with the help of the University of Arkansas. Facts have proved that with the strong support of RFID tag technology and other electronic product code technologies, repeated operations and omissions in the delivery of orders and goods are avoided, and there will be no dead ends and black boxes in the operation procedures of product or commodity supply chain.
In 2005 alone, Wal-Mart used more than 50 million FRID technology labels on the original basis. In fact, the operation mode of FRID technology label is quite simple, and only a few people are needed to manage it. The efficiency of goods tracking and inventory search is amazing, which greatly improves the level of inventory management, reduces inventory and reduces logistics costs. The staff of Wal-Mart stores regularly walk into the sales hall or goods warehouse of the store with machine-readable RFID tag technology, and scan all the goods with the transmitting antenna. Dynamic information such as the quantity and inventory of various commodities all automatically appears on the screen of machine-readable equipment, and the out-of-stock and about-out-of-stock commodity columns will send out audible and visual signals to warn, without omission.
To sum up, we must ensure that there is no unreasonable shortage of various products on the shelves of Wal-Mart retail stores, and the fast-charging logistics strategy on the shelves of shopping malls must be further implemented. If unexpected events and accidents are inevitable, consumers should also be informed in advance, explain the reasons, apologize and predict the replenishment date. It is admirable that the FRID network of Wal-Mart stores in the United States and around the world can be managed globally through satellite communication network technology. That is, the information dynamics of inventory, sales and after-sales service, financial management, etc. In all kinds of retail stores, the suppliers, manufacturers, transportation services and middlemen of Wal-Mart Group are completely controlled by Wal-Mart retail headquarters in the United States.
The cost of RFID technology is borne by the supplier.
According to the report of the University of Arkansas, by the end of 2005 10, Wal-Mart had spread modern supply chain management technologies such as RFID to more than 500 Wal-Mart retail stores and chain stores in the United States and around the world. By the end of 2006, the application scope of RFID technology will be expanded to more than 65,438+0,000. That is, all the goods on the shelves of all stores under the name of Wal-Mart Retailer Group, the product packaging boxes and trays of suppliers, etc. RFID tags must be used, and the matching scanning and tracking screen display machine reader must also be in place. Its goal is to fully grasp the goods dynamics of Wal-Mart stores' shelves, pallets, warehouses and in transit at the first time and on the first site through radio frequency identification technology tags and electronic information networks, and the accuracy rate of operating rules of its fast-charging stores or chain stores' shelves logistics service strategy can reach over 99%.
As for RFID tag technology, the cost is basically borne by suppliers, because suppliers can strengthen the close relationship with Wal-Mart retailers, expand marketing economies of scale, reduce logistics costs and improve efficiency, and get considerable return on investment in technological innovation, instead of passing RFID costs on to Wal-Mart retailers who actively advocate high-tech supply chain technology. RFID can really improve the productivity of retail industry, especially in improving the economic efficiency of supply chain. It used to take a few hours, and almost all the staff in the mall went out to check the goods on the shelves of the mall. Now only a few people need to finish all the work in 30 minutes. Therefore, it is more and more common for global suppliers to join Wal-Mart's RFID technical team to improve the logistics efficiency of inventory and shelves in the retail industry.
Technology has always been in the process of continuous improvement, and FRID video recognition technology tag is no exception. At present, the average cost of FRID RFID tags is about 25 cents each. At the same time, the first generation of FRID technology labels currently used by Wal-Mart will be completely eliminated in July 2006, and the second generation of video identification technology labels will be fully launched immediately. Wal-Mart encourages its suppliers to actively adopt the second generation technology of FRID through encouragement and appropriate compensation. The cost will not exceed 7 cents -8 cents, and it may not exceed 5 cents by 2007, and its users will be more extensive.
The strategy of filling shelves quickly has greatly reduced the cost.
According to the requirements of Wal-Mart retailers in the United States, the distribution center must improve the accuracy and real-time replenishment of shelves through rapid scheduling, and further reduce the inventory cost of the distribution center. That is to say, suppliers who replenish Wal-Mart's retail stores and chain stores should increase the frequency of quick supply operations. However, most deliveries are made in small quantities. Wal-Mart no longer requires suppliers to provide products for half a month, 1 month or even longer at a time, nor does it store a large number of goods for sale in the warehouses of shopping malls or chain stores for a long time. At present, Wal-Mart requires suppliers to provide goods with a sales volume of less than five days, which makes the work of Wal-Mart and its suppliers very severe, and the market pressure of suppliers and sellers is even greater. But as long as the operation is proper, the shelf logistics strategy of Kuaichong Mall can be successful.
For example, now suppliers can directly operate and use the procurement logistics regulations of the distribution center of Wal-Mart retail company, let suppliers use the inventory information technology network of Wal-Mart retail malls and chain stores, not only enjoy information, but also plan the management of commodity retail supply chain, greatly improving its supply efficiency, speed and accuracy, prompting suppliers and sellers to obtain huge economic benefits and ensuring the quality of customer service.
The advantage of the logistics strategy of quick replenishment of shelves in shopping malls lies in that by shortening the supply cycle and increasing the supply frequency of small-batch, multi-variety and large-batch products, the inventory cost is further greatly reduced and the economic benefits of shelf supply are improved. In 2004 alone, this innovative measure of shelf replenishment logistics service increased the revenue of Wal-Mart Retail Group by 285 million dollars. At present, Wal-Mart Retailer Group is fully promoting the shelf logistics strategy of fast-charging shopping malls to retail chain stores, retail shopping malls, suppliers and manufacturers of daily necessities and foods operated by partners, and expanding the coverage and benefits of the fast-charging shelf logistics strategy.
There is no doubt that the implementation of fast loading shelf logistics strategy according to the requirements of Wal-Mart retailers will inevitably increase the cost of truck freight, but these costs can be reduced by improving the technical function benefits of retail markets such as FRID and the return on investment in supply chain. Coupled with the close cooperation of suppliers, manufacturers and other partners, with the wide application of RFID tag technology, we will expand the role of electronic information technology in supply chain management and strive to reduce logistics costs from the source of supply. As long as we make persistent efforts, we will eventually achieve a benign balance in the retail industry as a whole. The 3,600 Wal-Mart supermarkets, retail malls and chain stores in the United States have saved an average of $52 million in distribution and logistics costs every year only through the strategy of quickly filling shelves. Its long-term savings index is 3100000 USD per year.
Wal-Mart retailers in the United States also have the functions of saving energy, reducing pollution and protecting the environment. Fast-loading shelf logistics strategy is further promoting suppliers to closely cooperate with the global retail logistics policy of Wal-Mart, the world retail giant, that is, to continuously reduce costs, introduce technology and innovate supply chain operation procedures, and increase its global annual total revenue target to 285 billion US dollars.