Welcome to Three Minute Insights, where we discuss issues of importance to retail suppliers in three minutes or less. This week’s topic is Walmart’s partnership with Avery Dennison to implement RFID sensor technology in fresh categories and the implications for suppliers. Our guest is Terry Clear, Director of Replenishment and Sales Insights at 8th & Walton.
Lainie: Terry, people are asking how this new RFID sensor technology addresses the challenges of tracking inventory in high-moisture, cold environments like meat cases.
Terry Clear: RFID allows store associates to get an accurate reading of inventory without physically touching each package. Associates can quickly know when items may be past their expiration date.
Lainie: The obvious advantage for Walmart is making sure what’s on the shelves is safe to consume, allowing removal before consumers spot expired items.
Terry Clear: Currently, associates have to check each package and its expiration date to ensure no expired meat is placed on counters. RFID reduces labor by enabling associates to scan a section and receive notifications about products nearing expiration.
Lainie: What do suppliers need to know about adapting to this new technology?
Terry Clear: Many requirements haven’t been published yet, but suppliers in the meat, deli, and bakery categories should reach out to Walmart to find out what will be required. These requirements will differ because Avery Dennison has created an RFID tag that withstands the cold, wet conditions of a cold chain. Each unit will be labeled with an RFID tag that can be scanned without direct line of sight, and each scan will retrieve the unit’s expiration date. There will also be specific requirements for how the RFID tag is applied or embedded in product packaging.
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Lainie: Do you see this helping Walmart reduce food waste?
Terry Clear: Absolutely. I encourage suppliers to aggressively track markdowns and throwaways to establish a baseline for reporting. Track markdown rates and waste before RFID, then compare after implementation. With better inventory control from RFID, markdowns and waste should decrease noticeably.
Thank you for listening to Three Minute Thursdays, produced by 8th & Walton and produced at The Ledger in Bentonville Square. The Ledger offers six fully bikeable stories of private offices, individual coworking spaces, meeting rooms, and event venues.
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