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Walmart's New RFID Tech Finally Cracks the Code for Fresh Food
Walmart is partnering with Avery Dennison to launch a new RFID system in its fresh food departments to slash food waste and improve inventory management.
Key Points
- Walmart is partnering with Avery Dennison to launch a new RFID system in its fresh food departments to slash food waste and improve inventory management.
- The technology provides real-time product freshness data, automating manual expiration date checks and allowing employees to prioritize stock rotation.
- This initiative supports Walmart's goal to halve its food waste by 2030, addressing a major challenge in the global food supply chain.
- Due to its scale, Walmart's adoption of this technology is expected to set a new industry standard and accelerate digitization across the grocery sector.
Walmart and Avery Dennison are rolling out a first-of-its-kind RFID system that can withstand the cold, moist environments of fresh food departments. The move is designed to slash food waste and fix inventory management in the notoriously tricky meat, deli, and bakery aisles.
Ditching the clipboard: The new system gives associates a real-time look at product freshness, letting them ditch manual expiration date checks to prioritize stock rotation and get ahead of markdowns. According to the joint announcement, the goal is to free up employees from tedious inventory tasks to focus on customers.
A trillion-dollar problem: The initiative is part of Walmart’s public goal to halve its food waste by 2030, tackling what the UN estimates is a $1 trillion problem. "By giving each item its own digital identity, associates instantly know the freshness of the foods they are handling, enabling better inventory management and resulting in less waste," explained Julie Vargas of Avery Dennison.
The Walmart effect: While other retailers like Kroger and Chipotle have also been adopting RFID, Walmart's sheer scale is poised to create a tipping point. The move is expected to accelerate the digitization of the entire food supply chain.
By solving a difficult technical challenge, Walmart isn't just cleaning up its own operations; it's setting a new standard that will pressure suppliers and competitors to follow suit, fundamentally changing how the grocery industry tracks products from farm to fridge.
Meanwhile, Avery Dennison's sustainability push includes developing the first recyclable RFID labels, a milestone that coincides with the company's 90th anniversary. The underlying tech itself is also more common than many realize, powering everything from contactless payments to passports.
