1. Solution Overview
This solution is customized by Shanghai FineJoin through analyzing the enterprise's needs. It integrates RFID technology, network technology, computer technology, database technology, and wireless communication technology. Combining the company's actual requirements and FineJoin's extensive experience and unique technical expertise, we propose the following formal RFID logistics retail management system solution.
Terminology Conventions:
1. Clothing tag: refers to an RFID tag attached, embedded, or hung on a single garment, with a unique unchangeable ID number, enabling long-distance reading. It has multiple forms: plastic hang tags, paper hang tags, adhesive labels (attached to hang tags), flexible care labels, etc.
2. Case tag: refers to an RFID tag affixed to a designated position on the packaging case, with visible information on the surface, applied by labeling workers.
3. Location tag: refers to an RFID tag affixed to a designated position on the storage location, with visible information on the surface, applied by labeling workers.

II. Solution Objectives
1. Enable batch rapid inbound and outbound of goods at the headquarters warehouse to shorten the overall supply cycle.
2. Achieve real-time inventory and sales statistics and quick replenishment at retail stores, thereby ensuring efficient operations, promoting sales, and tracking consumer habits.
3. Enable tracking of channel logistics information to a certain extent for channel management, preventing unauthorized cross-regional sales, combating illegal online sales, and implementing channel management policies.

III. System Architecture
The overall system workflow is shown in the following figure:

IV. Solution Operation Process
1. RFID Clothing Tag Information Writing
Writing Information for New Hang Tag Labels
    If using PVC card hang tag form for RFID clothing tags, the RFID inlay is directly laminated into the middle layer of the hang tag, forming a single unit. This type of tag can be rewritten multiple times and recycled, greatly reducing corporate investment costs.
    This type of hang tag can be initialized using a specialized RFID automatic card issuing device to write tag identification information, as shown in the figure below. Typically, one side of the hard hang tag is printed with the brand image, and the other side is left blank. Then a self-adhesive label printed with style-color code and barcode information is attached to the back of the hang tag (the self-adhesive label uses removable adhesive, allowing easy removal without residue during recycling). The automatic card issuing device first reads the barcode information and then writes the unique code corresponding to the barcode into each hang tag chip.

Clothing Tag – PVC Hard Hang Tag

Automatic Initialization Device

The general workflow for initializing hard hang tags is as follows:
1) The hang tag management department retrieves all barcode information for the order from the system based on the production order, and prints self-adhesive labels (ordinary self-adhesive label paper using removable adhesive material; this adhesive can be repeatedly attached to PVC surfaces without leaving residue, making it easy to clean during future recycling and maintaining the cleanliness of the hang tag surface);
2) Attach the self-adhesive label to the back of the RFID hang tag;
3) Use a customized automatic card issuing device to write cards in batches; the card issuer first reads the barcode information on each hang tag, generates a unique code for that tag, writes it into the RFID chip, and simultaneously checks the quality of the tag (by reading multiple times to verify the correctness of the written information and the tag's performance);
4) Pack and separate hang tags by different SKUs, clearly marking the SKU and style-color code information on the packaging box. Absolutely avoid mixing tags of different SKUs.
5) Distribute the initialized tags to each processing plant according to the production order.
Since this system only involves logistics applications and does not require anti-cross-regional sales functionality, it only needs to write the RFID tag's EPC code and read the TID. During tag initialization, the garment code is retrieved from the ERP system, the unique code is generated and written into the EPC memory area, and the tag's TID number is used as a unique identifier to enhance system reliability and robustness.
The RFID automatic card issuing device takes only 3 seconds to complete the process from reading a barcode to writing and verifying tag performance for one hang tag. One card issuer working 10 hours per day can complete writing for 12,000 hang tags, and two card issuers can complete 24,000 hang tags.
Writing Information for Recycled Tags
For recycled hang tags, a pre-processing step is required. This includes:
1) Clear hang tag data: This can be done in two stages: First, when selling garments, the hang tag cut from the garment is immediately passed over another reader under the sales counter (this reader is controlled by a program that rewrites the tag to a meaningless sequence code, thus clearing the original barcode information from the hang tag chip); second, if no processing is done at the point of sale, all tags are returned to headquarters, where the automatic card issuing device sequentially writes a sequence code into each hang tag to clear the original barcode data.
2) Surface cleaning: Use alcohol or cleaning agents like Polish beads to wipe off the self-adhesive label on the back of the hang tag (the label uses removable adhesive, so it can be easily removed by gentle wiping or peeling without leaving residue). Then select hang tags with good surface condition, no obvious scratches or creases, for reuse.
3) Follow the five-step process for new hang tags described above to rewrite new barcode information onto the recycled tags, package them, and send to the factory.
2. Attaching Hang Tags
When dispatching production orders, the factory provides RFID brand tags corresponding to the number of garments of each style-color code, along with traditional hang tags, as auxiliary materials to the production line or team supervisor together with the order's production raw materials. When finished garments come off the line, based on the SKU of the produced garment, take the corresponding RFID hang tag and traditional paper hang tag from the designated packaging and string them onto the garment. Take only one SKU's tags at a time, and avoid mixing different styles to prevent confusion.
After garments come off the line, pack them into cases following the principle of one SKU per case as much as possible. Clearly mark the style-color code and quantity on the case's external label.
The factory sends the shipment manifest for this batch to the brand headquarters via the network platform as an advance shipping notice, so that the headquarters warehouse can perform inbound verification upon arrival.
2.1 Inbound Quality Inspection
After finished garments are transported to the brand headquarters warehouse, quality inspection must be performed first. The first step of quality inspection uses an RFID desktop reader or a specialized inspection and packing workstation (including an RFID desktop reader, a PC, and an automatic conveyor belt) to check whether the attached RFID hang tag information matches the care label, washing label, and the garment itself, and whether any tags are missing. If discrepancies are found, the items enter a holding area for correction before being stored.
2.2 Inbound Acceptance
Using existing receiving and shipping channels, install imported 4-channel high-performance readers from Impinj, capable of identifying up to 120 tags simultaneously without misses, ensuring a single-case identification rate of 99% for clothes and pants.
When goods arrive, the operator retrieves the incoming delivery notice awaiting receipt, confirms it, and then activates the RFID receiving scanning channel to begin scanning cases one by one. The operator places an entire case onto the conveyor belt of the scanning channel. The channel automatically moves the case through and uses the RFID reader to scan the details of the items inside. During scanning, the program interface displays the shipping factory, order number, item details, planned arrival quantity, actual arrival quantity, number of cases, and any discrepancies.
If the scanning results differ from the confirmed case quantity and contents, the case enters the "investigation processing area" for manual inspection.
After the receiving scanning operation is complete, the program uploads the scanning results and records relevant attributes for each item in the database, including receiving time, receiving location, operator ID, etc. It also records order attributes such as order received quantity, receiving time, receiving discrepancies, etc.
The RFID receiving and shipping channel takes only 12-15 seconds to scan one case of clothes. Assuming 30-40 items per case, working 10 hours a day can handle inbound and outbound operations for 72,000 to 96,000 garments.

RFID Receiving and Shipping Fast Scanning Channel FN T12

2.3 Order Picking and Allocation
Order picking and allocation in the headquarters warehouse is a tedious task, often prone to picking errors, leading to increased investigation workload for outbound. This system proposes a picking and allocation process based on storage locations and handheld devices to improve picking accuracy and operational efficiency.
The allocation operation process is as follows:

Figure 1

(1) Establish a SKU location definition function in the existing system to easily query the location of each SKU;
(2) After creating an allocation order in the system, print an allocation order containing storage location information, sorted by location number, to help the picker plan an efficient route.
On this basis, we propose a more advanced allocation method – dynamic allocation via handheld device, as shown in Figure 2:

Figure 2

(1) After the picker creates an allocation order in the ERP system, they can directly download the order to the handheld device (no need to print the order, saving paper and being environmentally friendly).
(2) The handheld device dynamically displays all storage locations in the order, the number of items to be picked and already picked for each location, sorted by the optimized picking route;
(3) The picker can scan the hang tag barcode and RFID information via the handheld device for automatic comparison, greatly improving picking accuracy.
(4) Through the handheld device, the system automatically reminds the picker how many SKUs have not been fully picked (instead of manually marking on paper documents).
This system supports multi-order consolidated picking to reduce travel time between different storage locations and improve overall efficiency.
2.4 Case Sealing and Outbound
According to the order, pack garments of the same SKU into the same case as much as possible, then print a packing list, place one copy inside the case, and affix another copy to the designated position on the packaging case. Then seal the case.
First, place the case to be sealed on the RFID scanning channel for whole-case scanning to check whether the product quantity, style, color, size, etc., inside are correct. If passed, proceed to the next step; if discrepancies exist, the case enters the "return for inspection" process.
Second, print the packing list label for the passed case using an RFID printer. While printing the surface label information, the printer also writes the statistical information of this case's contents into the label chip. Affix the packing list label to the designated position on the packaging case, seal the case, and ship to agents or flagship stores.
When the agent receives and inspects the goods, they only need to read the SKU count and the quantity for each SKU stored in the packing label chip to obtain detailed information about the shipment. By comparing with the delivery note, they can complete the acceptance.
2.5 Store Sales Management
Store management based on RFID technology includes three parts:
1. Fast checkout for clothing sales, with linkage to the inventory management system for records and updates.
After customers select the garments they wish to purchase, they proceed to the checkout counter. The cashier places the clothes on the RFID scanning platform, and the computer displays a detailed list of selected items and automatically calculates the total amount. Simultaneously, the store's inventory decreases.
All sales data is automatically updated in real time to the backend system through the inventory system, allowing headquarters to easily understand the real-time sales and inventory status of each store and make targeted replenishments.
After completing the payment, the cashier cuts off the RFID hang tags from the clothes one by one, passes each over an RFID writer hanging on the side of the checkout counter (to initialize the tag), and then drops them into a tag recycling bin under the counter for future reuse.
2. In-store multimedia display and promotion: Using a multimedia advertising terminal with an embedded RFID reader to identify the current garment's information, display promotional information and inventory status of related clothing on the terminal, guide consumer purchasing decisions, and stimulate purchase desire.
3. RFID-based membership management
When a consumer purchases any Yanhuang brand clothing, it comes with an RFID hang tag. This tag can also be used as a membership card. After the consumer pays, the store assistant takes one hang tag from the purchased garment, passes it over the reader to read the member ID, then enters the member's basic information such as name, gender, age, preferences, occupation, etc. The reader then automatically writes the member's name into the hang tag chip. Subsequently, whenever the consumer presents this hang tag, their basic information can be retrieved immediately, and they can receive corresponding promotional discounts or accumulate points. The system can also classify and automatically upgrade membership levels based on cumulative spending.
2.6 Store Inventory Counting
For stores, an RFID handheld terminal or POS tablet reader can be used for warehouse counting. During counting, a gradual local counting method can be adopted, focusing on specific shelves, categories, or products received during a certain period. Alternatively, a full warehouse count can be performed during idle time.
For goods on display, use an RFID handheld terminal to walk slowly along the display racks, ensuring each item is read, to achieve automatic counting and statistics. Compare with the original system's inventory data to highlight differences. After counting, the handheld terminal can automatically analyze the read tags to determine the actual quantity of each style, color, and size of clothing, thereby maintaining inventory balance and timely replenishment, avoiding stockouts or size gaps for a particular style, and ensuring customer demand.

V. Hardware Equipment Selection:
FineJoin M11 Handheld Terminal
RFID Clothing Tag