Managing change at TSI Holdings
TSI Holdings, one of Japan’s leading apparel companies, operates 59 famous apparel brands, including Nano Universe, Margaret Howell, and Stussy. The company has been aggressively investing in digital strategies, including significant expansion of its e-commerce channels, unified commerce, smart factory construction, and logistics robots.
Until recently, TSI Holdings’ brands, self-developed as well as overseas brands that joined the group through mergers and acquisitions, had different backgrounds and cultures; each brand managed its information and manufacturing processes individually. Standardizing processes while maintaining the uniqueness of each brand was one of the company’s primary goals.
In addition to differing processes, TSI Holdings, like other fashion companies, was dealing with the changes in consumer buying behavior. “The mass-production, mass-consumption, brick-andmortar business model is no longer valid. Fixed costs have become such a burden for fashion companies that it’s become necessary to restructure supply chains in order to manufacture efficiently. I believe that fashion companies cannot survive unless they completely change their business structure,” explains Mr. Masanori Maekawa, Director of Supply Chain Management.
TSI Holdings’ management team decided that digital transformation was necessary to resolve both issues. The company wanted to end inefficient operations and fragmented product information. TSI also wanted to achieve real-time visualization of processes throughout the supply chain, standardize operations, improve business productivity, and accelerate industrialization speed.
TSI Holdings and Kubix Link
TSI Holdings, which was looking to implement a fashion PLM solution as part of its product innovation efforts, was interested in the flexibility, scalability and interconnectivity of Lectra's Kubix Link PLM. Kubix Link enables companies to centralize information in order to streamline internal and external communication plans and collaboration. This makes it easier to share manufacturing information, track progress, and accelerate the decisionmaking process.
For TSI Holdings, Kubix Link offers the flexibility to expand functions and link with external systems, and can be used for a wide range of business operations. The company also expects that Kubix Link will improve merchandising operations, by making the analysis and budget planning process for stores and ecommerce sites more efficient.
As a result, TSI Holdings will be able to boost the percentage sold of full-priced products and thus improve its gross profit margin. Kubix Link allows TSI Holdings to focus on creative work and capitalize on the time saved with a streamlined process to strengthen its brands.
TSI Holdings plans to further accelerate business reforms, starting with connecting the existing 3D design tools and the newly implemented PLM solution. In the next fiscal year and beyond, TSI Holdings plans to connect its new PLM with next-generation logistics systems, overseas product assortment handling systems, and performance management systems to make TSI Holding’s platform even more sophisticated.