Manufacturer of RFID Tags and RFID Readers
  • RFID

Wal-Mart plans to realize store automation services, RFID technology plays a pivotal role

Since the beginning of the new century, new technologies represented by AI and AR have continuously promoted the development of global automation. Digital intelligence has become the focus of the current layout of retail enterprises. Through technological empowerment, enterprises can optimize their operational efficiency, consumer reach, Organizational structure, cost structure, etc. are the directions that many retail companies are currently exploring, especially the improvement of supply chain and logistics digital intelligence capabilities is the top priority of retail companies’ future layout.

Just recently, Walmart Inc. kicked off a two-day 2023 investment community conference, and at the same time, the company reiterated its guidance for the first quarter and full year of fiscal 2024. According to reports, through extensive work, Walmart is redesigning its supply chain to meet customer needs through a smarter, more connected omni-channel network, which is achieved through greater use of data, smarter software and automation. To improve inventory, inventory accuracy and processes, whether customers are shopping in-store, picking up or delivering. Wal-Mart plans to achieve automated services in about 65% of its stores by the end of fiscal year 2026, and about 55% of its fulfillment centers will adopt automated facilities, and the average cost per unit will increase by about 20%. Just ten days ago, the company announced plans to lay off more than 2,000 employees.

图片1

 In addition, Walmart outlined how the company expects its growth investments to change its financial position, centered around three key components: sales growth from an omnichannel business model; diversification of revenue streams through improved categories and business mix; expansion through Proven high return on investment, driving operating leverage and improving incremental operating margins. It is reported that not only Wal-Mart, but also Amazon, the second largest employer in the United States, is also advancing business automation at full speed. As we all know, there are currently two types of mainstream unmanned stores in the domestic and foreign markets, one is unmanned stores with machine vision technology, the other is unmanned stores with RFID technology, and some vending machine combinations. RFID mode is selected.

图片2

As early as August 2018, Walmart established an automated pickup system “Alphabot” at the Salem store in New Hampshire, USA. “Alphabot” was developed by Alert Innovation, a retail automation solution company. The Alphabot system includes an automatic storage and retrieval system, an automatic picking system, and a main control system. The robot will move in various warehouses through the main control system; but agricultural products And fresh food orders such as meat will still be manually selected and packaged. Walmart implemented the system in January 2019 after a year of testing. The system is currently operating in a 20,000 square foot warehouse space. The system’s automated shopping carts collect certain items customers order online, including refrigerated and frozen goods, and send them to workstations where they are inspected, packed and delivered by Walmart employees. The Alphabot integration will help streamline Walmart’s online ordering process, reducing delivery times and improving accuracy. By 2022, Wal-Mart will pre-expand the application field of RFID tags and require its suppliers to use RFID electronic tags for new products that need to be expanded before they can be put on the store shelves. Wal-Mart originally used RFID electronic tags in the field of clothing and shoes, but this time it will expand to more fields.

图片3

After using RFID technology, Wal-Mart can better use it to manage inventory, thereby speeding up the efficiency of product supply and allowing customers to enjoy a better shopping experience. In addition, from the perspective of the operating cost of the mall, the use of RFID technology can also reduce labor, logistics and other costs, and further realize unmanned management. As for the plan released at the investment community meeting, Wal-Mart executive vice president and chief financial officer John David Rainey (JohnDavidRainey) spoke about it. “We believe we are well positioned to help define a new chapter in retail and do so while driving strong growth and shareholder returns,” he said. We believe approximately 4% sales growth and faster operating income growth are still appropriate targets for the business over the next 3-5 years. The investments we’ve made put us in a good position to deliver steady and sustained growth with higher profit margins. If we achieve our sales growth target of 4% over the next five years, we will add over $130 billion in sales from our current roughly $600 billion. Bottom line, we think the opportunity for operating income growth over the next 3-5 years may be better than outlined.

Separately, the company reiterated its fiscal 2024 first-quarter and full-year guidance: Consolidated net sales to increase by 4.5% to 5.0%; consolidated operating income to increase by 3.5% to 4.0% at constant currency, subject to LIFO by 235 basis points Adjusted EPS of $1.25 to $1.30, including an expected $0.03 impact from LIFO.


Post time: May-05-2023