How to Use Walmart’s RFID Strategy to Improve Inventory Efficiency

May 20, 2025

What Walmart’s RFID Rollout Means for Your Supply Chain

Radio Frequency Identification (RFID) technology has been around for decades, but in recent years it’s become a strategic tool for some of the world’s largest retailers. Known for its supply chain efficiency and relentless focus on innovation, Walmart has been a leading force in driving RFID adoption across retail.

For suppliers and manufacturers, keeping up with Walmart RFID requirements isn’t just about meeting mandates. It’s an opportunity to rethink how inventory is managed, tracked, and optimized.

This blog explores what we can learn from Walmart’s RFID playbook and how you can apply similar strategies to improve visibility, efficiency, and performance in your own operations.

Walmart RFID: A Quick Overview

Walmart began implementing RFID tagging on apparel back in 2010, but it wasn’t until 2020 that the program started expanding significantly. Now, the RFID requirement covers a broader set of categories including home goods, toys, electronics, sporting goods, and more. The goal is simple: improve merchandise availability, reduce stockouts, and streamline the supply chain.

Every item within these categories must now carry an RFID tag that can be scanned without line of sight, allowing for rapid inventory audits and better in-store stock management.

This level of visibility helps Walmart know what’s on the shelf, what’s in the backroom, and what’s in transit, all in real-time.

Why Walmart RFID Matters to Everyone Else

Even if you don’t currently supply to Walmart, their RFID program is a bellwether for where retail inventory management is heading. As more large retailers follow suit, RFID is shifting from a “nice-to-have” to a competitive necessity.

Here’s why it matters:

  • Faster inventory audits: RFID-enabled systems can scan hundreds of items in seconds, dramatically reducing the time required to complete full audits.
  • Real-time inventory visibility: Knowing what’s in stock at any given time reduces out-of-stocks and overstocking.
  • Improved customer experience: Better inventory accuracy means better product availability.
  • Reduced shrinkage: RFID makes it easier to track high-theft items and pinpoint losses.
  • Increased operational efficiency: Less time spent counting inventory means more time focused on sales and service.

These are universal challenges that stretch across industries. From apparel to automotive, manufacturers and suppliers stand to benefit from adopting the same principles Walmart has laid out.

How to Apply the Walmart RFID Playbook

So what can your business do to follow Walmart’s lead? You don’t need the scale of a global retailer to benefit from RFID. Here are a few strategic takeaways you can implement today:

1. Start Small and Scale

RFID implementation doesn’t have to be all-or-nothing. Many companies begin by tagging high-value or high-volume products to test the waters and refine their systems before rolling out across product lines.

2. Choose the Right Label Partner

RFID labels are more than just tags. They require durability, precise encoding, and integration with your inventory systems. Working with a trusted label partner (like Impact Label) ensures you’re using high-quality materials and that your tags are tuned to your unique environment.

3. Audit Your Current Systems

Before you implement RFID, assess your current inventory management process. Where are the biggest inefficiencies? What data are you missing? Use these insights to prioritize where RFID can deliver the most impact.

4. Integrate with Your Tech Stack

RFID works best when it’s connected to the broader ecosystem of your business—from your ERP and WMS systems to POS and analytics platforms. Make sure you have the right infrastructure and integrations in place to make the most of your RFID data.

5. Don’t Forget About Compliance

If you do supply to Walmart, make sure your tags meet their specific standards. Walmart provides detailed RFID tagging requirements through their Supplier Portal, including encoding guidelines and approved inlay types. Non-compliance can lead to delays and penalties.

Real-World Benefits of RFID in Manufacturing and Retail

Many businesses that adopt RFID experience measurable ROI within the first year. According to a study by Auburn University’s RFID Lab, retailers using RFID saw up to 25% improvement in inventory accuracy and a 10-15% increase in sales due to better product availability.

In manufacturing, RFID is increasingly used to:

  • Track parts and assemblies throughout production
  • Automate quality control checkpoints
  • Monitor work-in-progress and cycle times
  • Optimize raw material usage
  • Enhance traceability and compliance

These benefits make RFID a strategic asset across the supply chain, not just for retailers.

How Impact Label Can Help

At Impact Label, we understand that RFID can feel complex—but it doesn’t have to be. We help our partners navigate RFID adoption from start to finish.

Here’s how we support you:

  • Design and production of durable RFID labels for retail, industrial, and logistics applications
  • Materials consulting to ensure performance in harsh environments
  • Encoding and serialization services
  • Custom solutions built to meet Walmart RFID specifications and beyond

RFID is a tool to unlock smarter operations and greater visibility across your supply chain.

Get Ahead by Learning from the Best

Walmart’s RFID playbook is built on decades of trial, error, and optimization. Their success proves that RFID can drive real change when implemented strategically. For businesses of any size, this is a roadmap worth following.

Whether you’re preparing to meet Walmart’s requirements or just beginning to explore RFID, now is the time to act. The companies that move early will not only meet expectations—they’ll set new standards for efficiency, accuracy, and customer experience.

Reach out to Impact Label to learn how we can tailor an RFID solution to your business needs.