At the company's distribution center in Douglas, Ga., workers are already using handheld RFID readers to identify which items have been picked, compare the collected garments with the quantities on a pick ticket, and catch any errors during the picking process, before products are packed into cartons.

Herman Kay Co., a third-generation, family-owned business, holds the license to manufacture and market coats and outerwear bearing a number of major brands, including BCBG, DVF, London Fog, Michael Kors and Anne Klein. It then sells the apparel to most large retailers, including Macy's, JCPenney, Nordstrom, Lord & Taylor and Dillard's.

When garments arrive at Herman Kay's distribution center, they are stored on hangers until they are picked, packed and shipped to customers according to their specific orders. Many of the styles look very similar, says Richard Haig, the company's CIO and CTO, and checkers have thus needed to visually inspect the hangtags and labels, often twice, before the products were packed for shipping.

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