They began experiencing serious fraud and misconduct among their employees. The company estimated a loss of between Rmb9.3 million and Rmb10.5 million, which is equivalent to more than 5% of Sunshine's total domestic sales. Since Sunshine uses the RFID/ERP system, managers are able to game the system. Every four hours the head office receives updates on the store, these managers take advantage of top management's inability to control aspects at the local level. Although headquarters was responsible for setting the timing of promotions, branch managers were not accountable. In this way the branch managers were able to sell the sweaters at the original price and pocket the difference. Another thing branch managers would do is report a higher discount rate to headquarters and pocket it