The system is based on a technology known as radio frequency identification (RFID), a new breed of computer network designed to track the location of everyday objects such as razors and shoes by embedding them with special microchips. Wal-Mart has enlisted its top 100 merchandise suppliers to participate in the high-profile project, which is one of the first and largest of its kind in the retail industry.
A Wal-Mart representative refused to comment on the company's spending plans.
Wal-Mart's multibillion budget is an unofficial estimate that the company has discussed privately with other companies involved in the project, said the sources, who wished to remain anonymous.
Nevertheless, the large sum bodes well for a number of information technology companies that specialise in the fledgling RFID niche. Among them are companies that make RFID chips and readers, including Philips Semiconductors and start-ups Alien Technology and Matrics. According to one source, Wal-Mart will spend about two-thirds of its RFID budget on readers and the installation of them in more than 100 distribution centres and thousands of stores.
The rest of the budget is slated for other hardware and software to collect, process and store data the new system generates, the source said. Several major tech companies, including Sun Microsystems, SAP, IBM and Intel, are developing such infrastructures and are lining up to sign on customers.
Wal-Mart and its top 120 or so merchandise suppliers met near the retailer's headquarters on Tuesday to coordinate the US launch of the technology, set to begin in 2005.
The project's success depends on the cooperation of Wal-Mart's suppliers. The retailer has asked them to purchase millions of RFID tags and attach them to all shipments headed for Wal-Mart warehouses. Analysts estimate that it will cost larger suppliers as much as $23m just to start.
Wal-Mart expects a big payoff from the technology, mainly from having fewer logistical errors and reduced labour costs related to inventory processing. One analyst pegged the savings at nearly $8.4bn annually, once Wal-Mart completes the project.
Talkback
RFID = 1984
Radio Frequency Identification is an automatic data capture technology that uses tiny tracking chips affixed to products. These tiny chips can be used to track items at a distance--right through someone's purse, backpack, or wallet. Many of the world's largest manufacturing companies are now in the process of replacing the bar code with these "spy chips," meaning that virtually every item on the planet--and the people wearing and carrying those items--could be remotely tracked. There is currently NO REGULATION protecting consumers from abuse of this technology.
Despite that research predicts the global market will exceed $US3.1 billion ($4.7 billion) by 2008, on November 4, 2003, a meeting was held near Wal-Mart's Bentonville, Arkansas, headquarters with its largest 100 merchandise suppliers. Kraft Foods, Procter & Gamble, Tyson Foods, Unilever, IBM, Intel, Microsoft, Philips Semiconductor and SAP, to name a few, attended. Wal-Mart asked its top 100 suppliers to join the effort and, starting January 1, 2005, attach RFID tracking "tags" to the millions of cases and containers they ship to the company.
In July of 2003, RFID strategy documents were discovered by Katherine Albrecht, founder of CASPIAN, using an internet search engine. The documents include publicity recommendations, consumer surveys, and slideshows discussing how to pacify consumers. The RFID industry site, www.autoidcenter.com, has already removed and/or replaced the documents.
Wal-Mart's January 1, 2005 deadline is the first step in the world's largest retailer gearing up to implement RFID in its inventory-management system across all of its stores. Wal-Mart will use the Electronic Product Code compliant RFID technology for identifying, tracking and tracing deliveries and inventory. Wal-Mart's hundreds of suppliers must take action now to ensure they will remain on the shelves of the retail giant. Test centers are already in place. Perhaps Wal-Mart ought to change their name to Wal-Marx as well as their slogan, "Costs You Privacy. Always!"
Has both good/bad implacations
It has to happen, to set the stage for the antichrist. He will need this to be in place before he comes on the seen...
Count down to antihrist
I can't stand Wal-mart, and I refuse to shop there. Who do they think they are pushing these environmentally unfriendly chips on the packaging. They are so cheap they have to hire illegal immigrants, and not pay them fair wages. Now they want to use these unsafe, unproven chips to save millions. They have been selling Chinese goods for the last decade, because they are too cheap to pay wages. People have to get beaten in prison in China if they do not put out products fast enough. A missionary had said he was imprisoned there, and this is what they do. He was making Chrstimas lights. Shame on Wal-Mart. We will shop somewhere else.
Gee RFID tags to track inventory and those you buy it! Thank you Red commie China supporter and New World Order tracking agent!!!
thank you for your update. I believe this is just the beginning of tracking systems to fulfill the One world System, and make people less up tight about being marked and coded. Now even people non Christain do not like particulary the idea of a mark, given enough time and Co.'s like Wal-mart the idea becomes less offensive. Has anyone given a real good reason why we need to follow products in this manner?
LOL - Great comments Mr. Molero!
I'd like to chime in as well.
People don't know that, for instance, RFID tracking is now easier and more accurate. For example, there is a new type of RFID chip which can track a target within a 30,000ft range and pinpoint an objects location to an accuracy of within a single ft. Read for youselves here: http://rense.com/general42/rf.htm
Another example is using "child saftey" as an emotional plea to gain acceptance for people tracking programs and technologies. "Tracking Wrist Bands" says it all here: http://www.kolr10.com/Global/story.asp?S=1464332&nav=0RXJIHeQ
Consumers should start doing things for themselves and stop placing their faith in the mainstream media. There are numerous web sites that spell out, in lay men's terms for goodness sake, the dangers and valid concerns of this electronical Lucifarian technology and tracking.
Try http://www.spychips.org
RESPONSE TO LARRY GLASSER......RIGHT ON.....ANTICHRIST PROBABLY MUCH CLOSER THAN ANY CHRISTIAN REALIZES.....I FOR ONE AM LOOKING UP WAITING FOR MY SAVIOR.....HE'S COMING SOON AND I'M GOING......HALLELUJAH. BRING ON THE TAGS WAL-MART....I DARE YA.
GREAT STORY. WELL RESEARCHED, BUT QUITE UNCLEAR AS TO WHO IS THE LEADING LIGHT IN THIS EMERGING MARKET.
COULD YOU PLEASE LET ME KNOW WHICH START UPs ARE THE BEST PLACED TO BE FRONT RUNNERS IN THIS NEW TECHNOLOGY.