How Perry Ellis cuts Chargebacks using High-Accuracy RFID Tunnels
Clustag’s RFID solution reduced post‑picking errors by 17%, cutting chargebacks and improving outbound accuracy.
Discrepancies Reduction
Real-time error detection: a 17% reduction in discrepancies in the post-RFID tunnel area, where boxes needing correction were fixed from day one.
Savings in Chargeback Penalties
Substantial savings in chargeback penalties, which previously amounted to tens of thousands of dollars per month for the company.
Boost Product Availability
Improved product availability across stores, ensuring the right sizes, colors, and styles reach the end-customer.
ABOUT PERRY ELLIS
Leading NA Apparel and Fashion Company
Perry Ellis International is a leading North American apparel and fashion company operating complex B2B distribution flows to retail partners and franchise networks.
From its 600,000 ft² distribution center in Dublin (Atlanta), Perry Ellis manages high‑volume outbound operations where accuracy and speed are critical to meeting retailer compliance requirements
The Challenge
Previous Situation
For years, Perry Ellis relied on pick‑to‑light systems and manual validation processes to prepare outbound orders. While picking efficiency was high, final post‑picking validation remained a critical control point, leaving room for undetected discrepancies before shipping.
In addition, the existing setup lacked direct integration with the conveyor system, limiting real‑time visibility and synchronization between physical flows and WMS data. As a result, errors could still reach retail customers.
Impact
These discrepancies had a direct financial impact.
When B2B customers received shipments with missing or excess garments, Perry Ellis faced chargebacks and penalties amounting to tens of thousands of dollars.
In the fashion industry, shortage‑related chargebacks are the most frequent cause of penalties, often reaching up to 20% of the invoice value. Even minor mismatches could trigger costly deductions, eroding margins and putting pressure on distribution performance.
The Clustag Solution
To eliminate these risks, Perry Ellis deployed a RAIN RFID–based post‑picking validation system developed with Clustag.
The solution was fully integrated into the existing conveyor infrastructure and implemented without disrupting ongoing production, despite complex installation conditions, including mezzanines over 12 meters high.
Key elements of the solution included:
- Zentup middleware, fully integrated with Manhattan WMS, verifying each EPC against expected order data in real time
- Cognex elbow‑mounted barcode scanners to identify each box before validation
- High‑performance MOT RFID tunnels, capable of processing up to 1,000 boxes per hour
- Automated rejection lines from Interroll to manage incidents without slowing throughput
Customer Validation
«We trust Clustag because their RFID tunnel solutions, integrated with Zentup, can detect errors before they reach the shop and have given us a clear competitive advantage. We will continue to invest in these RAIN systems for future projects»
Tom Seow | VP Distribution Engineering at Perry Ellis
Download the full brochure to explore how Clustag’s RFID solutions helped Perry Ellis reduce chargebacks, improve outbound accuracy, and automate post‑picking validation without impacting throughput.
