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SUCCESS STORY

Kering AMER Logistics Transformation Program

Luxury fashion retail company transforms supply chain for improved logistics operations

 
Client
Kering Americas
Industries
Retail
Service
Application support, development SAP transformation Service desk and infrastructure support

Challenge

Kering Americas wanted to improve its logistics operations to meet its growing business requirements.

The luxury Group was facing challenges in supporting its tremendous growth across wholesale, e-commerce and retail channels in the Americas. Operational limitations, such as insufficient storage and outbound capacities due to the previous regional warehouse, were affecting the group’s strategic development in the region, impacting its business ambitions. There was an imperative need to expand e-commerce operations and improve product availability in the stores.

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Solution

Kering Americas collaborates with TCS for its state-of-the-art AMER operations center.

The luxury group designed and built a brand-new facility from scratch to expand their warehousing capacity in the region and for improved logistic services to its houses. This facility also introduced a new office concept with state of -the-art amenities for Kering employees. The Kering Technologies AMER team followed a tech-first approach, which focuses on all IT requirements from the start of a project. The complex system integration roadmap, connected to the transformation, decoupled the IT transformation from the facility construction: new warehouse management system/ warehouse control system (WMS/WCS) implementation, new e-commerce order management systems and new distribution processes activation, targeting the new group omnichannel model.

The program improved the logistics service level for associated Kering Houses by enabling Kering AMER Legacy ERP to handle new functionalities in an upgraded third-party warehouse system, also supporting the group’s omnichannel expansion plan. With in-house contextual knowledge and solutions, TCS assisted in developing and stabilizing the complex system integrations with new warehouse systems through every phase of this program, from regression, system integration, user acceptance testing support to pilot/full rollout, hyper care, and steady-state support. TCS also assisted with setting up the infrastructure of Kering’s corporate office and successfully facilitating the movement to its new office. 

“TCS support was instrumental in deploying the system and infrastructure technology embedded into the largest and most advanced regional operations center in the group.” – Gilberto Tosca, VP Kering Technologies, Kering Americas

Benefits

Improved standards of logistic operations, sustainability, and employee well-being.

Kering Americas vastly improves its warehousing capacity, strengthening its logistic services experience across channels. The new facility with state-of -the art amenities will enable the company to scale its operations, support increased demand and continued growth, and ensure employee satisfaction. 

  • One single WMS system to support omnichannel operations
  • Gold Leed certification for DC and office
  • + 285% DC square footage 
  • + 281% videoconferencing  systems 

+50%

Bandwidth

-50%

Lead time to the stores

+89%

e-commerce revenues 2020 vs 2019

+60%

Office square footage

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