Ronald Mayer, Walmart’s CEO from 1974 to 1976, was a
strong advocate for the use of technology to reduce costs. Upon his return to the helm of the
company, Walton adopted Mayer’s ideas. Walmart was an early adopter of uniform product
codes (UPC) at the point of sale which allowed Walmart to know the location of every item at
all times. The roll out of UPCs began in 1983 and ended in 1988, two years ahead of Kmart (at
the time, a company larger than Walmart). Walmart’s satellite system was set up in 1983 at a
cost of $20 million. Walmart’s investments in technology helped enhance communication
between headquarters, stores, and vendors. Inventory costs decreased and inbound logistics
became more efficient