Mar 1, 2008 12:00 PM, Amy Johannes

Wal-Mart Stores Inc. is giving its suppliers a new reason to take its RFID mandate seriously: Starting Oct. 31, 2009, suppliers that ship products to Sam's Club's distribution center in DeSoto, TX, will be required to tag each product.

The DeSoto facility will also be the first to mandate case-level tagging this October. Previously, Wal-Mart's focus has been on pallet-level tags.

And a new rule that took effect Feb. 1 urges suppliers to affix tags to pallets, or pay a $2 per pallet fee. Four more distribution centers will implement the directive by the fall. All 22 distribution centers are to comply by Jan. 31, 2009 when the fee goes up to $3 per pallet.

The fee is “meant as an accommodation for suppliers until they develop their own solution,” says Wal-Mart spokesperson John Simley.

Wal-Mart Stores, the parent company of Wal-Mart and Sam's Club, has been working with its suppliers since 2004 to attach tags on products sent to its stores.

“A lot of suppliers said to us, ‘We understand what the benefits are, but what do you want us to do and when?’” Simley says. “So, we laid out a graduated implementation strategy.”

The motivation: Greater efficiency.

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