Wal-Mart stops RFID-tagging of promotion displays with Procter & Gamble
RFID Update magazine reported that Procter & Gamble has ended its highly touted practice of using RFID to track promotional displays at Wal-Mart stores. Displays were tagged to automatically record when they were moved between the back room and the retail floor. Merchandise managers were alerted if the system didn't detect promotional displays being positioned according to schedule. Both firms have publicly credited the system with improving sales by helping ensure promoted items were placed where shoppers could buy them. "We have completed the validation step of this project with Wal-Mart," P&G spokesperson Paul Fox told RFID Update. "We continue to work with Wal-Mart on a number of Electronic Product Code (EPC) technology initiatives." RFID tracking did prove effective for improving promotions tracking, but Fox stressed in talks with RFID Update that business process changes and deep collaboration between retailer and manufacturer are required to maximize the value RFID provides. Wal-Mart and P&G won't be making the needed changes at this time and will continue to explore other ways to jointly benefit from RFID.
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