Starting next week, Wal-Mart is to begin selling garments that will contain radio-frequency identification (RFID) tags. Wal-Mart insists that the RFID tags are vital to inventory management, but many groups have questions about privacy associated with the tags. Before now the RFID tags were restricted to use on pallets, rather than the items on the pallet.

The Wall Street Journal have reported that JC Penney and Bloomingdale's are both looking at introducing RFID tags, while abroad, Metro in India, Tesco in the UK have already been issued directives to replace bar codes with RFID tags. The interesting aspect to Wal-Mart's adoption of RFID tags is to see if the RFID tags do mean increase productivity in the warehouse or another project that failed to live up to the hype.

Follow me on Twitter

A recent research brief from the SMB Group highlighted some very interesting survey results. According the SMB Group's 2010 Small and Medium Business Routes to Market Survey, 75 percent of survey respondents were more optimistic about the overall economy in 2010. To add to his optimism the survey found that small and medium businesses would be spending more on technology to help with their recovery. The survey found that more than half of small businesses, and more than 60 percent of medium businesses say that they plan to spend from 1 percent to 20 percent more on technology solutions and services.

The small business community has been shoring up customer satisfaction and this will continue but in addition, the investment in technology will be including infrastructure and collaboration, and business analytics. When survey respondents were asked about ERP applications, 31 percent of medium and 23 percent of small businesses indicated that this was something they are considering.

Follow me on Twitter

As you may have read before, Intelligent Global Pooling Systems (iGPS) operates the world's first pallet rental service providing shippers and receivers with all-plastic pallets with embedded RFID tags. Today it announced that is completing its new Sales and Innovation Center in Bentonville, AR, which will showcase the company's innovative solutions and act as the center of research and development. In addition iGPS is consolidating all of its customer service and logistics personnel in a state-of-the-art facility based in Orlando, FL.

iGPS has created pallets that are 100 percent recyclable as well as being 30 percent lighter than pallets made of wood. iGPS also claim that their pallets are "vastly better for the environment" and "do not absorb fluids that can cross-contaminate food". One concern that has worried food manufacturers is the treatment of wood pallets with pesticides and fungicides. iGPS's plastic pallets do not need treatment so they claim they are more suitable for moving foodstuffs in the warehouse.

Follow me on Twitter

This is the big logistics news for the week for sure; delivery package giant UPS reported that second quarter earnings grew a whopping 71 percent over the 2009 quarter, while revenue grew 13 percent. To top that piece of news, the company also reported that each of its business segments posted a healthy profit.

UPS Freight saw revenue grow 10 percent to $2.16 billion from $1.79 billion a year ago, which was driven by improved yield and higher weight per shipment. UPS's International packages sector saw profits increase 78 percent to $521 million with a 23 percent jump in revenue. UPS saw that its average daily package volume rose more than 1 percent with a 2 percent growth in ground volume.

Follow me on Twitter