Wal-Mart has implemented ID Systems' RFID technology to track cranes and other vehicles across 12 U.S. distribution centers. According to Gene Merlo, deputy director of sales for ID Systems North America, the system has successfully met two primary objectives: improving productivity and maximizing vehicle utilization within the distribution network. The implementation began with a pilot program in the second half of 2005, followed by small-scale testing in several distribution centers in 2006. The system was then expanded to a larger facility last year, marking a significant step in Wal-Mart's logistics optimization strategy. At the core of the system is the Vehicle Asset Communicator (VAC), a battery-powered device equipped with a 915 MHz RFID receiver. Installed on cranes and other equipment, the VAC communicates with the Wireless Asset Manager—a network of receivers placed throughout the facility. This setup allows real-time tracking and data transmission via wireless or Ethernet connections to a central server running ID Systems’ software. The software collects and processes location and sensor data from each tagged vehicle, providing managers with detailed insights into vehicle movements, driver assignments, and operational status. It also tracks vehicle usage over time, offering visibility into their entire lifecycle. Before driving any vehicle, Wal-Mart drivers must interact with the VAC by scanning their personal badge. The VAC reads the RFID tag, verifies the driver’s authorization, and logs the session. If the driver is authorized and is the first to use the vehicle in their shift, the system prompts them to perform a safety check, which includes both automated diagnostics and manual inspections to ensure compliance with OSHA standards. During operation, weight sensors connected to the VAC monitor the cargo area, helping determine if the vehicle is carrying goods. For example, this feature helps identify whether a forklift is loaded, enabling managers to assess productivity more effectively. Merlo explained that with 100 vehicles and 80 registered drivers, the system helps identify idle vehicles and optimize resource allocation. Managers can track which vehicles are actively transporting goods and how frequently employees are working, allowing for better performance evaluation and resource management. This data-driven approach not only improves efficiency but also helps reduce the number of vehicles needed or change their usage patterns. With forklifts costing between $10,000 and $25,000, efficient management can significantly cut operating costs. Prior to adopting the vehicle management system, Wal-Mart relied on a warehouse management system to monitor operator productivity, but it lacked the ability to fully measure employee performance. The new system offers a more comprehensive view of operations. ID Systems conducted extensive testing, including lab and real-world environments, ensuring the VAC operates without interference from other RFID systems like EPC Gen 2 hardware or existing wireless networks used by Wal-Mart. Beyond Wal-Mart, the same system is also used by the U.S. Postal Service, highlighting its effectiveness and adaptability across different industries.

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