Workload 3-travis Butler_BUSI 411_12-17-17.docx

Workload 3-travis Butler_BUSI 411_12-17-17.docx - Wegmans...

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Wegmans Food Market is extremely efficient and uses the latest technology to gain and maintain a competitive edge in the market. However, some waste must occur in Wegman’s ordering system, which records sales at their checkout registers, but then requires other data and processes to replenish orders (Stevenson, p 34). Seasonal demands and other factors certainly play a role in what products are required, but the implementation of an automatic system that can build algorithms and make ordering decisions based off historical data is not a far-fetched idea. RFID, radio frequency identification , technology has improved much over the years and allows businesses and supply chains to manage products via radio frequency tags (Stevenson, p 674). According to RFID specialists, the Industry and public interest in RFID technology took a large jump forward in June 2003 because Wal-Mart mandated its largest 100 suppliers to begin using RFID tags on shipped items at the pallet level by January 2005 (Curtin et al., 2007). Wegman’s also uses RFIDs at the pallet level, but claims the cost of RFID is still too great to use on individual items of sale (Stevenson, p 674). Industry experts agree that in order for RFID to be widely used and fully utilized, tag costs will need to drop from 50 cents each to approximately 5 cents each in the next 5–10 years (Curtin et al., 2007). Wegman’s accomplished this milestone of 5 cents per RFID tag and that works great because it is used on a per pallet basis (Stevenson, p 674). However, to get a tag on individual items and improve inventory management and shipping, Wegman’s needs to implement the cheaper UHF (Ultra High Frequency) RFID technology that is a fraction of the price of HF RFID tags (Ching / Tai, 2009).
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