Wal-Mart's Way (article written by Laurie Sullivan)

Wal-Mart is completely dependent on their information systems when it comes to running their business and maximizing revenues. One of the main things the writer focuses on in this article is Wal-Mart’s obsession with making sure that the products customers want are always on the shelves (not in inventory, on the shelves). To improve their approach to fulfilling this obsession, Wal-Mart has introduced what they call an RFID reader. Using this device, they can go into the store’s inventory and have the device locate and find relevant information for the product that the employee is looking for. This may seem like it can be replaced by a thorough and organized stocking system, but we need to remember the volume of products that Wal-Mart offers for sale. This device, coupled with their other information systems (in particular the system they use to track each item sold) will allow Wal-Mart to make sure their products are always both in stock, and on the shelves. Wal-Mart will now even be able to monitor precisely how long each item spent in stock, and on the shelves. Wal-Mart can do this for each store including 1,387 discount stores, 542 Sam’s Clubs, 75 Neighborhood Markets (US), and 1,520 other stores worldwide. For all of these stores, the RFID reader along with their other information systems makes it easy to keep inventory levels as low as possible. As we learned in accounting, keeping inventory levels low is of the utmost importance when paying taxes. It seems like Wal-Mart’s competition is going to need to get with the program.