Wal-Mart to suppliers: RFID or else

Wal-Mart is telling its suppliers that it's time to jump on the RFID bandwagon.

Linda Dillman, Wal-Mart's chief information officer, said that, in spite of significant improvements this year in the effectiveness of tags and lower costs, "there are some that are still entrenched in their belief that it's not going to work".

As a result, the retailer was becoming increasingly unwilling to spend time working with suppliers who adopted a "slap and ship" approach to tags – meeting the tagging requirement without engaging with the retailer on modifying and enhancing their use.

"We've started communicating to some of the suppliers who have been reluctant – which is a nice way of saying it – to say, 'We can't invest any more time in you'."

That will probably get their attention.