Supply chain

RFID can improve inventory accuracy at store-level, according to a study commissioned by Wal-Mart and conducted by researchers from the University of Arkansas.

The study involved 16 Wal-Mart stores - eight test stores and eight control stores without RFID systems. The research, which lasted 23 weeks, included a mixture of Wal-Mart's Supercentres and Neighborhood Market stores.

The researchers counted inventory for 10 weeks before the RFID inventory adjustment tool was activated in test stores.

Bill Hardgrave, director of research at the university, told Packaging News: "RFID can improve inventory accuracy. With improved accuracy, out of stocks can be reduced, unnecessary stock can be reduced and uncertainty in the supply chain can be reduced."

Excess inventory would ultimately lead to extra holding costs, and excessive markdowns that impact on the bottom line, Hardgrave added.

The university is continuing its research.