AKRON (March 11, 2004) — Goodyear said it will invest in radio frequency identification (RFID) applications as part of a Wal-Mart Stores Inc. trial to use the tags on products shipped to some of its stores.
Last year Wal-Mart said it would require its 100 largest suppliers to begin using the RFID tags on every case and pallet of product shipped to its Dallas region stores by 2005. About 25 other suppliers, including Goodyear, volunteered to participate in the program, the tire maker said.
Goodyear said it is investing in the technology to help increase tire sales and reduce costs by ensuring product availability, making supply chain operations more efficient, improving business processes and lowering operating costs.
The tags work through microchips attached to a product or pallet. The chips carry unique identification codes that are read by radio transceivers. The technology can be used to provide information about a product and track its location.
“Wal-Mart is to be applauded for leading the charge to introduce RFID technology into the supply chain infrastructure,” said Jon Rich, president of Goodyear's North American Tire unit. “Goodyear is in an excellent position to track the rapid technology advances in this area, and we are excited to be a part of Wal-Mart's trial.”