Best Buy Co. Inc. has outlined its plans for implementing radio frequency identification (RFID) technology in its supply chain. The retailer wants its major suppliers to identify pallets and cases with Electronic Product Code (EPC)-based RFID tags starting in January of 2006, and pallets and cases from all suppliers tagged by 2007.
"Our goal is to create a flexible, high-velocity supply chain operating with better product availability for customers at a lower total cost for the company," said Bob Willett, executive vice president of operations for Best Buy. "We believe RFID technology can transform the way products are produced, distributed and merchandised. Our own operations, customers and suppliers can share in the benefits."
Best Buy joins other major retailers like Target, Wal-Mart and METRO in adopting EPC for product tracking.
The company participated in an Accenture-supported consortium that examined the potential benefits of RFID implementation across the consumer electronics supply chain. It also met with suppliers and surveyed customers. Best Buy and Accenture will jointly define the RFID program strategy, manage rollout and implementation, and assist suppliers with meeting integration and compliance requirements.
"Our EPC strategy should ultimately result in a better customer experience," said Willett. "Customers will be able to more easily find the products they want, when they want them. In the long term, we hope that implementing EPC will enable us to enhance customer service and expedite processes for returns and warranties."
The company will test several applications of the technology in select stores and distribution centers in the coming year.
www.bestbuy.com
