Walmart's use of RFID Technology

For Walmart, the use of strategic control systems is imperative to monitor their operations, and change their strategy as needed. The purpose of the strategic control is to watch a strategy as it is being implements, and to make essential alterations to that strategy (Pearce & Robinson, 2016). The use of RFID can help them to not only track the products through the supply chain, but also to determine the different consumers of different products (Bonson & Fenlon, 2007). This technology is better than a typical UPC code, which is a read-only technology and does not collect any data that would be useful for Walmart.

At Walmart, there are multiple ways that they use strategic surveillance, special alert control, and implementation controls.  Strategic surveillance would include monitoring both inside and outside of the company, special alert control is a sudden event that causes the strategy to change, and implementation control is assessing if the strategy should be changed depending the result on smaller actions (Pearce & Robinson, 2016).  For Walmart, some examples of the strategic surveillance would include not only watching their customers through surveillance cameras, but also security measures at the exits of the store. There are employees that physically check receipts to ensure that the items are paid for, and the alarm system at the door that prevent stolen goods. The use of RFID technology could create a smooth shopping experience, where consumers can skip the checkout and have the money automatically come from their bank accounts (Bonson & Fenlon, 2007).

Also, for Walmart, there must be controls in place for inventory coming in on trucks to ensure that the goods are received, and in the appropriate amounts. RFID allows for Walmart to indirectly monitor the incoming inventory. Special alert controls that Walmart may deal with are if there is a recall of a product, or inclement weather that effects the stores operations. This causes them to change their strategy to deal with those sudden issues. With implementation control, managers are given an objective, or different projects, that will help the company reach their overall strategic goal (Pearce & Robinson, 2016). An example of this would be when the managers hold meetings with the different departments to explain what needs to be completed each day/week/month. The results of the small projects will determine if the strategy of Walmart would need to change.

Improvements to suggest to the COO would include improving systems to track inventory, ensuring employees and the entire supply chain are as efficient as possible, and that all projects align with the overall strategy of the business. Aside from the usual use of surveillance cameras in areas of the store with the most thefts, the store could also ensure that employees on the floor are constantly monitoring consumers.  These employees could notify upper management if a consumer is stealing. Another thing would be to constantly check progress of projects to determine if the strategy needs to change. This includes comparing Walmart to their competition to create new ideas of how to remain relevant in a challenging market.  Just recently, Walmart began offering free 2-day shipping and even a discount for ordering online and picking up the items at the store. If Walmart were able to utilize RFID to its full potential, they would be able to easily track and monitor their inventory, collect data from the products, and implement new strategies based on the information provided by the products.

References
Pearce, J., Robinson, R. (2016-01-02). Strategic Management, 13th Edition. [Kaplan]. Retrieved from https://kaplan.vitalsource.com/#/books/0077807634/
Bonsor, K. & Fenlon, W. (2007). How RFID works. Retrieved from  http://electronics.howstuffworks.com/gadgets/high-tech-gadgets/rfid.htm

RFID Technology as a Strategic Control System

Technology has provided a multitude of conveniences not just for individuals but for corporations.  One of these advances is the Radio Frequency Identification technology also known as RFID. This microchip is being used in a variety of manufacturing and inventory control applications today.  Walmart became an early user of the chip to improve their vast distribution network.  Inventory control is vital to every organization and the use of smart technology and RFID helps provide better and more accurate inventory control in very large operations.  Walmart can track their products from any one of their 150 distribution centers to the shelf of the store.  It helps the store control the levels of inventory to have what the customer is wanting and it helps the distribution center keep proper inventory of product that the stores are selling.  They can watch the inventory levels and know what sells and what doesn’t.  Then they can take action to increase or decrease inventory at any level. 

RFID technology has caused concern for many consumers who believe that they are profiled or that their home can be scanned from a distance and know what is inside.  RFID chips are being inserted into almost everything including our driver’s license, passports, credit cards and more.   Many feel that this invades our privacy and is easily hacked by thieves.  I do not see this technology going away any time soon as it is too valuable in inventory applications. 

Recommendations to the COO of Walmart would be to continue use of RFID technology and to keep equipment in good working order and up to date.  Training for all levels would be a constant issue to ensure that all employees understand how the technology works and its importance in the management of inventory.  The days of inventory manual counts are becoming less frequent and used to make adjustments to the electronic inventory levels.  Walmart could work with inventors to see if they could develop a reader that could scan and account for all items that leave the store and give a secondary look at inventory.  This would help to account for products that are stolen from the store and make inventory adjustments less frequent.  It would also help to know how much product gets stolen and maybe help to find ways to stop it.  Reducing theft at the store level should improve profits and help inventory control.  This should also help to keep the cost of product low due to less theft.  

Mary

Hyde, R. 1/18/2015 How Walmart Model Wins With “Everyday Low Prices” Investopedia, Retrieved from:  http://www.investopedia.com/articles/personal-finance/011815/how-walmart-model-wins-everyday-low-prices.asp

Walmart – Our Business, Retrieved from:  http://corporate.walmart.com/our-story/our-business

Pearce, J., Robinson, R. (2016-01-02) Strategic Management, 13th Edition. [Kaplan] Retrieved from https://kaplan.vitalsource.com/#/books/0077807634/