US retailer Target requires RFID from 2005

February 25, 2004

RFID Journal reports: Target Issues RFID Mandate:

Target, the fourth largest retailer in the United States, has told its top suppliers that they will be required to apply RFID tags on pallets and cases sent to "select" regional distribution facilities beginning late spring 2005. The company wants all suppliers to tag pallets and cases by the spring of 2007.

The information was disseminated in the form of a letter from Target CIO Paul Singer to vendor partners on the company's extranet. It says: "Target expects top vendor partners to apply tags to all pallets and cases and start shipping to select regional distribution facilities beginning late spring 2005. Target's intent is to accept RFID tags from all vendors as a supplement to the current bar code markings at the carton and pallet level by spring 2007."

Target hence joins WalMart and the US Department of Defense in requiring main suppliers to tag the goods.

Such massive retailers have a large market muscle and are likely to be the main drivers for RFID adaptation "everywhere" in Retail / Supply chain over the next years.


Posted by andersja

Comments

I've nothing against the described palett level plans, however I wonder how long it will be before they creep into individual products. My suspicions aren't helped by Target's silence. According to Computerworld:
"Target, however, is more tight-lipped about its plans. The company declined to provide additional information about its mandate and refused requests for an interview."

Posted by: Trevor Mendham at March 1, 2004 06:04 PM

Trevor, indeed a valid point:

You could also look at it this way: if all WalMart's suppliers start putting RFID tags on all individual items supplied to WalMart, it will probably cost them MORE to differentiate the labelling of products for Target (i.e. putting unlabelled items on labelled pallets...?) than just supplying individually labelled items to all their customers.

Just my 2 cents...

Posted by: Anders at March 1, 2004 06:14 PM
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