In the tuxedo rental business, there's no room for error. At The Men's Wearhouse, an array of specialized conveyors ensure order fulfillment is fast and accurate.
David Maloney has been a journalist for more than 35 years and is currently the group editorial director for DC Velocity and Supply Chain Quarterly magazines. In this role, he is responsible for the editorial content of both brands of Agile Business Media. Dave joined DC Velocity in April of 2004. Prior to that, he was a senior editor for Modern Materials Handling magazine. Dave also has extensive experience as a broadcast journalist. Before writing for supply chain publications, he was a journalist, television producer and director in Pittsburgh. Dave combines a background of reporting on logistics with his video production experience to bring new opportunities to DC Velocity readers, including web videos highlighting top distribution and logistics facilities, webcasts and other cross-media projects. He continues to live and work in the Pittsburgh area.
How do you cope with the challenge of assembling up to 50,000 customized tuxedo rental orders a week? That was the question facing managers at a DC run by The Men's Wearhouse in Pittston, Pa. During peak season, the facility, which serves 193 stores in the Northeast and Midwest, processes a flood of returned garments, which all have to be cleaned, inspected, and stored, while workers simultaneously assemble thousands of new customer orders. And, of course, all of this has to be done quickly and without any errors.
Founded in 1973, The Men's Wearhouse is one of the nation's largest men's apparel retailers, selling brand name and private-label suits, sport coats, shirts, and accessories. The company also is a leading renter of formal wear. Orders for the company's 1,200-plus retail stores are primarily filled from a facility in Houston, while six other buildings, including the Pittston facility, handle rentals. Those six buildings receive returned rental tuxes from the stores. They then clean and prepare the garments for picking into tux assemblies to fill new customer orders—or what The Men's Wearhouse calls "reservations." The rental business experiences its peak demand in the spring, when it provides tuxedos for proms and weddings.
For the Pittston DC, the answer to keeping up with the workload during peak season lay in an automated system that features an array of specialized conveyors. The system installed in the 296,000-square-foot facility was designed and installed by W&H Systems, a Carlstadt, N.J.-based warehouse design and system integration firm. Most of the conveyors are designed to transport garments on hangers, known in the trade as "GOH." The mix includes screw units, hanging conveyors, and monorails, along with some flatbed belt and roller conveyors.
SMOOTH-FLOWING RETURNS
The process begins with stores returning their rented tuxes in Gaylord boxes, pallet-sized corrugated cartons used to transport bulk items. Upon the boxes' receipt at the Pittston facility, workers remove the garments from the boxes and separate them by type—pants, coats, shirts, vests, and so on. The workers then place the loose garments onto a belt conveyor supplied by FKI (now Intelligrated). The conveyor transports the garments to a receiving station, where an operator removes each item and scans the permanent bar code sewn onto the garment. This logs the garment back in as a receipt.
After they're logged in, garments are deposited into hampers that are wheeled to the facility's in-house dry cleaning department. Pants, vests, and coats are dry cleaned, while shirts are wet washed. The cleaned garments are pressed and hung on hangers. Plastic bags are placed over shirts and white tuxedos to keep them clean as they make their way through the warehouse. From the cleaning area, the hanging garments are transported to a collection point via a screw conveyor, which resembles a large shaft with grooves like a screw. The hangers ride down the spiral grooves as the shaft turns.
Once the garments arrive in the collection area, they're placed onto trolleys that are wheeled to scan, measure, and label stations. At these stations, an operator removes each garment and scans its bar code. As the code is scanned, information about the garment pops up on a computer screen. The associate then measures the garment to see if the store made any alterations, such as hemming the pants, and compares the measurements to the information on the screen. Any changes are noted. Next, a large label is printed that contains size specifications and other information about the garment. This is attached to the hanger so that workers can easily identify the article later.
The garments are next placed onto a hanging garment sorter supplied by SDI Group, a manufacturer of sorting and conveying systems. This device, which can handle 5,600 garments an hour, sorts the garments to 44 hanging destinations, according to garment type and putaway aisle. Once the items have been sorted, an operator hangs the garments onto trolleys, which are then picked up by a Daifuku/Jervis B. Webb-manufactured Unibilt monorail conveyor. The monorail carries each trolley through a three-level module (the hanging garment sorter is located on the module's bottom level) to a predetermined putaway location. The trolley is taken off and rolled into a position for putaway. The garments are stored in the module by type, with pants in one area, shirts in another, and so forth.
A PERFECT FIT
In the meantime, other workers are busy assembling incoming orders. Customers are measured for tuxedos at The Men's Wearhouse stores. The rental order information is then fed to the DC for fulfillment, where it becomes a reservation. The orders in Pittston are accumulated and processed in waves using pick tickets that specify the size, color, and style of each item in a reservation. Articles are added to the order as it travels through a three-story tower, or picking module, until the complete package is assembled.
The pants, located on the third level, are picked first. There, a worker selects the proper garment from the storage racks and places the pick ticket on its hanger. The pants are then placed onto a powered hanging conveyor manufactured by Pep Conveyor Systems for transport through the pants area. From there, they are transferred to another Unibilt monorail that takes them down to the second level. On arrival, they transfer to a Pep conveyor to travel through that level, where employees read the pick tickets and add shirts and then vests to the order.
At the end of the module, orders go back on the Unibilt monorail for transport to the bottom level. There, the "reservation" is hung on a rail and slid along through coat selection. A garment bag is added to the hanger and shoes are placed into a pocket on the garment bag.
At this point, the fully assembled tux is ready to leave the picking module. It is then slid on the rail to a quality control station, where a worker verifies the order and scans the bar code on each item to "assign" it to the finished tuxedo. A shipping label is printed and placed into the clear pocket of the garment bag. All of the items are then put into the bag, which is zipped closed.
TUXEDO JUNCTION
About 20 percent of the garments processed at Pittston are rush orders that require expedited handling. These tuxes are slid manually on a rail from the quality control area to the small-parcel area for packing. At packing stations, six tuxedos at a time are placed into a flat carton, which is sealed and deposited onto roller and belt conveyors that feed a small push sorter. The sorter diverts the cartons to four ship stations designated for parcel pickup.
The remaining 80 percent of the garments are hung onto trolleys that are wheeled from quality control to a staging area, where the tuxes are sorted by store. The tuxes are then placed onto a shipping trolley designated for that store and the paper reservation for that tux is added to the trolley. The trolley is pushed to a door for loading onto 53-foot trailers. The trailers, which are part of the Men's Wearhouse fleet, have rails built into the trailer beds to allow the trolleys to be wheeled directly onboard. Trailers are sent to consolidation hubs, where the trolleys are removed, routed, and wheeled onto 26-foot company-owned delivery trucks for store delivery.
So how has the new conveyor system worked out? Quite well, by all accounts. Since moving to an automated system for processing tuxedo rentals, The Men's Wearhouse has been assembling its tux orders more efficiently and with a high degree of accuracy. "The big thing was defining the criteria. W&H did a very good job of that," says Andrew White, senior director of engineering at The Men's Wearhouse. "There were no surprises once we got to implementing the system."
You might say these systems are well suited to the retailer's needs.
Each of those points could have a stark impact on business operations, the firm said. First, supply chain restrictions will continue to drive up costs, following examples like European tariffs on Chinese autos and the U.S. plan to prevent Chinese software and hardware from entering cars in America.
Second, reputational risk will peak due to increased corporate transparency and due diligence laws, such as Germany’s Supply Chain Due Diligence Act that addresses hotpoint issues like modern slavery, forced labor, human trafficking, and environmental damage. In an age when polarized public opinion is combined with ever-present social media, doing business with a supplier whom a lot of your customers view negatively will be hard to navigate.
And third, advances in data, technology, and supplier risk assessments will enable executives to measure the impact of disruptions more effectively. Those calculations can help organizations determine whether their risk mitigation strategies represent value for money when compared to the potential revenues losses in the event of a supply chain disruption.
“Looking past the holidays, retailers will need to prepare for the typical challenges posed by seasonal slowdown in consumer demand. This year, however, there will be much less of a lull, as U.S. companies are accelerating some purchases that could potentially be impacted by a new wave of tariffs on U.S. imports,” Andrei Quinn-Barabanov, Senior Director – Supplier Risk Management Solutions at Moody’s, said in a release. “Tariffs, sanctions and other supply chain restrictions will likely be top of the 2025 agenda for procurement executives.”
As holiday shoppers blitz through the final weeks of the winter peak shopping season, a survey from the postal and shipping solutions provider Stamps.com shows that 40% of U.S. consumers are unaware of holiday shipping deadlines, leaving them at risk of running into last-minute scrambles, higher shipping costs, and packages arriving late.
The survey also found a generational difference in holiday shipping deadline awareness, with 53% of Baby Boomers unaware of these cut-off dates, compared to just 32% of Millennials. Millennials are also more likely to prioritize guaranteed delivery, with 68% citing it as a key factor when choosing a shipping option this holiday season.
Of those surveyed, 66% have experienced holiday shipping delays, with Gen Z reporting the highest rate of delays at 73%, compared to 49% of Baby Boomers. That statistical spread highlights a conclusion that younger generations are less tolerant of delays and prioritize fast and efficient shipping, researchers said. The data came from a study of 1,000 U.S. consumers conducted in October 2024 to understand their shopping habits and preferences.
As they cope with that tight shipping window, a huge 83% of surveyed consumers are willing to pay extra for faster shipping to avoid the prospect of a late-arriving gift. This trend is especially strong among Gen Z, with 56% willing to pay up, compared to just 27% of Baby Boomers.
“As the holiday season approaches, it’s crucial for consumers to be prepared and aware of shipping deadlines to ensure their gifts arrive on time,” Nick Spitzman, General Manager of Stamps.com, said in a release. ”Our survey highlights the significant portion of consumers who are unaware of these deadlines, particularly older generations. It’s essential for retailers and shipping carriers to provide clear and timely information about shipping deadlines to help consumers avoid last-minute stress and disappointment.”
For best results, Stamps.com advises consumers to begin holiday shopping early and familiarize themselves with shipping deadlines across carriers. That is especially true with Thanksgiving falling later this year, meaning the holiday season is shorter and planning ahead is even more essential.
According to Stamps.com, key shipping deadlines include:
December 13, 2024: Last day for FedEx Ground Economy
December 18, 2024: Last day for USPS Ground Advantage and First-Class Mail
December 19, 2024: Last day for UPS 3 Day Select and USPS Priority Mail
December 20, 2024: Last day for UPS 2nd Day Air
December 21, 2024: Last day for USPS Priority Mail Express
Measured over the entire year of 2024, retailers estimate that 16.9% of their annual sales will be returned. But that total figure includes a spike of returns during the holidays; a separate NRF study found that for the 2024 winter holidays, retailers expect their return rate to be 17% higher, on average, than their annual return rate.
Despite the cost of handling that massive reverse logistics task, retailers grin and bear it because product returns are so tightly integrated with brand loyalty, offering companies an additional touchpoint to provide a positive interaction with their customers, NRF Vice President of Industry and Consumer Insights Katherine Cullen said in a release. According to NRF’s research, 76% of consumers consider free returns a key factor in deciding where to shop, and 67% say a negative return experience would discourage them from shopping with a retailer again. And 84% of consumers report being more likely to shop with a retailer that offers no box/no label returns and immediate refunds.
So in response to consumer demand, retailers continue to enhance the return experience for customers. More than two-thirds of retailers surveyed (68%) say they are prioritizing upgrading their returns capabilities within the next six months. In addition, improving the returns experience and reducing the return rate are viewed as two of the most important elements for businesses in achieving their 2025 goals.
However, retailers also must balance meeting consumer demand for seamless returns against rising costs. Fraudulent and abusive returns practices create both logistical and financial challenges for retailers. A majority (93%) of retailers said retail fraud and other exploitive behavior is a significant issue for their business. In terms of abuse, bracketing – purchasing multiple items with the intent to return some – has seen growth among younger consumers, with 51% of Gen Z consumers indicating they engage in this practice.
“Return policies are no longer just a post-purchase consideration – they’re shaping how younger generations shop from the start,” David Sobie, co-founder and CEO of Happy Returns, said in a release. “With behaviors like bracketing and rising return rates putting strain on traditional systems, retailers need to rethink reverse logistics. Solutions like no box/no label returns with item verification enable immediate refunds, meeting customer expectations for convenience while increasing accuracy, reducing fraud and helping to protect profitability in a competitive market.”
The research came from two complementary surveys conducted this fall, allowing NRF and Happy Returns to compare perspectives from both sides. They included one that gathered responses from 2,007 consumers who had returned at least one online purchase within the past year, and another from 249 e-commerce and finance professionals from large U.S. retailers.
The “series A” round was led by Andreessen Horowitz (a16z), with participation from Y Combinator and strategic industry investors, including RyderVentures. It follows an earlier, previously undisclosed, pre-seed round raised 1.5 years ago, that was backed by Array Ventures and other angel investors.
“Our mission is to redefine the economics of the freight industry by harnessing the power of agentic AI,ˮ Pablo Palafox, HappyRobotʼs co-founder and CEO, said in a release. “This funding will enable us to accelerate product development, expand and support our customer base, and ultimately transform how logistics businesses operate.ˮ
According to the firm, its conversational AI platform uses agentic AI—a term for systems that can autonomously make decisions and take actions to achieve specific goals—to simplify logistics operations. HappyRobot says its tech can automate tasks like inbound and outbound calls, carrier negotiations, and data capture, thus enabling brokers to enhance efficiency and capacity, improve margins, and free up human agents to focus on higher-value activities.
“Today, the logistics industry underpinning our global economy is stretched,” Anish Acharya, general partner at a16z, said. “As a key part of the ecosystem, even small to midsize freight brokers can make and receive hundreds, if not thousands, of calls per day – and hiring for this job is increasingly difficult. By providing customers with autonomous decision making, HappyRobotʼs agentic AI platform helps these brokers operate more reliably and efficiently.ˮ
RJW Logistics Group, a logistics solutions provider (LSP) for consumer packaged goods (CPG) brands, has received a “strategic investment” from Boston-based private equity firm Berkshire partners, and now plans to drive future innovations and expand its geographic reach, the Woodridge, Illinois-based company said Tuesday.
Terms of the deal were not disclosed, but the company said that CEO Kevin Williamson and other members of RJW management will continue to be “significant investors” in the company, while private equity firm Mason Wells, which invested in RJW in 2019, will maintain a minority investment position.
RJW is an asset-based transportation, logistics, and warehousing provider, operating more than 7.3 million square feet of consolidation warehouse space in the transportation hubs of Chicago and Dallas and employing 1,900 people. RJW says it partners with over 850 CPG brands and delivers to more than 180 retailers nationwide. According to the company, its retail logistics solutions save cost, improve visibility, and achieve industry-leading On-Time, In-Full (OTIF) performance. Those improvements drive increased in-stock rates and sales, benefiting both CPG brands and their retailer partners, the firm says.