With all the talk about read rates and various performance issues related to radio frequency identification technology, the best information in the world won't do a retailer or vendor any good if there is a lack of human execution based on the findings derived by the technology's use.
A case in point comes with the revelation that Procter & Gamble has decided to stop placing EPC tags on promotional displays at Wal-Mart Stores.
According to a RFID Journal piece citing an anonymous source, P&G made the move after becoming frustrated over a lack of compliance at store-level even after it had identified issues with Wal-Mart.
"I think they felt Wal-Mart should be doing more to live up to their end of the bargain," said the source. "Why put the tag on if Wal-Mart's not going to act on the data?"
Paul Fox, P&G's director of global external relations, said, "We've been working on these applications for close to 10 years. We have learned that to secure sustainable benefits, the use of EPC requires deep levels of collaboration between the manufacturer and the retailer, and a commitment to use the actionable visibility provided by the EPC to change business processes."
"The work we conducted with Wal-Mart has shown that this use of the EPC can deliver improved promotional effectiveness, better sales and, most importantly, higher shopper satisfaction. That validation work with Wal-Mart is now complete. But we will continue to focus on working with our retail partners on collaborative programs that can benefit the shopper," Mr. Fox added.
While moving away from tagging promotional displays, Mr. Fox said P&G believes "EPC can have profound benefits for the retail/consumer packaged goods industry... we continue to work with Wal-Mart on other EPC projects."
Discussion Question: How do you interpret what is going on with the EPC tagging situation at Wal-Mart? Shouldn't there be plenty of incentive in tracking promotion compliance and effectiveness to warrant the use of the technology?