Thursday, February 03, 2005

A little update on RFID

Business Week, has an article on the RFID mandate at Walmart. The author criticizes the retail world for not hopping on to this bandwagon and riding it full force. He says many have done the bare minimum to satisfy Walmart's request while ignoring the possible dollar savings for them in the long run. The "Slap and Wrap" tag he talks about is priced at .25 each. This is a cost that is applied to each and every item to which it is applied. It may not be a lot of money when you talk about a single item, but when it is factored into say 40 items in an average grocery cart that is significant. It is actually $10 extra per cartload. I am not sure about you, but I know that expense is not worth it to me. This is oversimplification of this issue by me, however, we need to put it iterms each consumer can handle. I could fill you with all types of facts and figures about supply side managemnt and inventory control but how long would I have your attention. The whole point of the blog is to bring information on how food gets to your shelf in as easy a fshion as possible. I want to help you begin to understand why these questions need to be asked, answered and understood. If I leave it in business speak, I'll lose a portion of you. For those of you who want it in business speak, send me an email - we'll talk.

We need to, as consumers, begin to talk about this phenomenom. What kinds of costs, are being passed on to us the consumer, with the intent to save dollars at the "plant". While reducing inventory management costs, those line item budget entries will be replaced with other lines. It may reduce the labor force by 2 or 3 individuals but is it really worth it? I'd rather have the item be tagless than put some guy out of work for Walmart's sake.

But then again, I can only keep you informed. The mighty GIANT will roll forth. Shop local. Save the job of a person you care about.