Fashion retailer reduces chargebacks with RFID tunnels
North American fashion group Perry Ellis International has strengthened its B2B outbound operations by deploying an automated post‑picking validation system based on RAIN RFID tunnels at its DC in the Atlanta area.
PICKING OPERATIONS were supported by pick‑to‑light systems, but final verification still relied heavily on manual checks, making it difficult to detect discrepancies before shipments left the facility.
Chargebacks caused by missing or excess items are among the most common penalties imposed by retailers, often reaching up to 20% of the invoice value.
To eliminate this risk, Perry Ellis implemented high-density RFID tunnels fully integrated into its existing conveyor lines. The solution automatically validates the contents of each open box after picking, comparing in real time the items detected by RFID with the expected order data.
The system combines Clustag MOT Station RFID tunnels, capable of processing up to 1,000 boxes per hour and reading up to 600 items per box. The process is orchestrated by Zentup, Clustag’s middleware platform, fully integrated with Perry Ellis’ Manhattan WMS, ensuring real‑time EPC‑level validation and allowing only compliant orders to proceed to shipping.
One of the challenges was deploying the RFID solution in a live production environment under tight timelines and complex installation conditions, including work on mezzanines over 12 metres high. Despite these constraints, the system was implemented without interrupting daily operations or reducing throughput.
Since go‑live, Perry Ellis has achieved a 17% reduction in discrepancies detected after the RFID tunnels, along with a significant decrease in non‑compliant shipments reaching B2B customers. This has translated into substantial savings in chargeback penalties and improved product availability at stores.
