20-05-2006 - Rapid Compliance with Wal*Mart

ANNIN & CO.

Leading Flag Manufacturer Implements SAP® RFID Technology for Rapid Compliance with Wal-Mart Requirement

Annin & Co. is the world’s oldest and largest flag manufacturer. Its flags have flown at every U.S. inauguration since 1849 and have gone to the moon on Apollo missions. Starting from a loft in downtown New York City – making signal flags for sailing ships in the 1820s – Annin now manufactures more than 10,000 different flags and flag accessories, and the giant retailer Wal-Mart is a major customer.

When Wal-Mart told suppliers to get ready to ship merchandise with radio frequency identification (RFID) tags, Annin – one of the many small and midsize businesses that use SAP® solutions – chose and implemented SAP RFID technology. It will mean a lot to Annin’s biggest customer, too. Although Annin was scheduled for Wal-Mart compliance in 2006, they were ready ahead of time to meet that date, thanks to the success of the SAP project.

“Annin is considered a small business, but we are now able to ship Wal-Mart outbound shipments with RFID tags,” says Carter Beard, vice president of manufacturing and business systems. “This shows Wal-Mart that we are a serious vendor and that we want to be a top-rated supplier with 100% shipment accuracy.”

Pleasing Wal-Mart was reason enough to do the pilot project at Annin’s manufacturing and distribution facility that services mass retail customers. But Annin also justified it with a cash calculation.
“We did an analysis of the cost of the project and the RFID tags,” Beard says. “SAP RFID technology will enable us to ship more accurately and, as a result, when fully deployed, we expect to reduce retailer chargebacks for shortages by 50%. That alone will pay for our project.”

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