RFID: a revolution in identification systems
Wal-Mart has long advised its customers to closely monitor the price cuts for its products, and today this world's largest retailer is following price cuts ... for radio frequency identification (RFID) systems. At the end of last year, she announced the mandatory transition of her stores to the RFID system. Since then, the price of RFID tags has halved, which, according to the company's specialists, will lead to a revolution in the world of retail and a complete change in supply chains. The largest Wal-Mart suppliers were asked to switch to RFID tags in their packages by January of next year. Suppliers of this largest retailer strive to meet deadlines, creating a real boom in the RFID market. Some analysts estimate that Wal-Mart alone will soon need a billion RFID chips per year, and the demand for these tiny devices will only grow. Other large retailers and some government agencies now require their partners to attach RFID tags to all types of packaging. So, in November last year, the US Department of Defense approved a new identification system at the federal level, requiring its suppliers to install RFID labels on industrial parts and pallets by 2005.