RFID Tunnel

RFID technology allows us to accurately and efficiently validate inventory across both our distribution centers and retail stores. However, when units are not properly tagged or do not pass through our RFID-enabled tunnels, they appear as missing from inventory, regardless of whether they were physically shipped.

Using our RFID-enabled tunnels, which have demonstrated 99.9% read accuracy, we can identify discrepancies in purchase orders. This technology provides enhanced visibility into shipment accuracy and allows us to quickly detect variances between expected and received units. All discrepancies are being adjusted from Altar’d State’s inventory in alignment with our current process.

As a reminder, this approach was communicated as part of our inventory compliance process update in May 2025, which outlined that RFID scan data would be used as the basis for inventory accuracy, and discrepancies—regardless of cause—would result in inventory adjustments. This standardized process ensures alignment across all vendors and supports a streamlined reconciliation method within our systems.

To support accurate RFID reads, it is essential that all units are properly encoded, tested, and tagged prior to shipment. RFID tags must be free of damage, correctly programmed, and placed according to Altar’d State guidelines to ensure optimal readability. Tags that are missing, duplicated, or improperly encoded may result in units being excluded from counts or incorrectly recorded.

Vendors are also responsible for ensuring that ASN (Advance Ship Notice) data is accurate and fully aligned with the physical shipment. Any mismatch between ASN data and RFID scan results may lead to processing delays and inventory discrepancies. Accurate and timely ASN submission is critical to maintaining efficient receiving operations and system integrity.

In order for all cartons to successfully pass through our RFID tunnel, carton dimension requirements must be met, and all GS1-128 labels must be placed on the longest side of the carton. Proper label placement ensures that cartons are scanned efficiently without manual handling or rework. Please see “Carton Dimensions” in the Distribution section of this guide for further details.

Additionally, all cartons must be sealed, labeled, and packed in a way that supports automated handling. Cartons that are crushed, improperly sealed, or inconsistently packed may interfere with tunnel flow and reduce scan accuracy. Maintaining uniformity in carton quality and packing standards is essential to achieving consistent results.

Repeated non-compliance with RFID tagging, ASN accuracy, or carton/label requirements may result in additional review, chargebacks, or corrective action requests. Our goal is to work collaboratively with vendors to prevent these issues and ensure a smooth, efficient supply chain process.

If you have any questions, feel free to reach out. We appreciate your cooperation in resolving these discrepancies, maintaining inventory integrity, and supporting the continued success of Altar’d State’s operations.