TSI built to win

Bobbin, Jan, 1999 by Kathleen Desmarteau

"Basically it's a joint venture," Pulsipher says of the IT investment required at the contractor level. "We will often make the investment [in their systems] and amortize it over some period of time against the work that they do for us. So it's very much a partnership."

Looking to the future, and considering the impact of the passage (or lack thereof) of NAFTA parity for the Caribbean Basin Initiative countries, Domino says the firm is committed to its production in the Dominican Republic regardless of what transpires in Washington. "With the acquisition of Savane, we're doing a tremendous amount of business in Mexico," he explains. "Do I see it all moving to Mexico if parity doesn't pass? No. But could there be a little bit of a shift of some sourcing toward Mexico? Yes."

In fact, if parity passes, TSI might consider moving its state-of-the-art cutting room - including its fleet of three high-ply GERBERcutters and 10 Niebuhr fully automated spreading machines - from Tampa to the Dominican Republic and/or Mexico. In this scenario, TSI's 110,000-square-foot cutting room would be converted into warehousing and distribution space.

By design, TSI seeks to own as little brick and mortar as possible. As it relates to the Farah acquisition, this philosophy has meant the selling off of 32 retail outlet stores, and the closing of three Farah manufacturing plants (two in Costa Rica and one in Mexico). At press time, Farah's one remaining Mexican production facility also was for sale, although TSI plans to continue significant sourcing programs with this manufacturing resource.

"We want to be looked upon as a marketing company, not as a manufacturer," emphasizes Kagan. "The only reason we're cutting here, and that we're doing our own cutting, is because of the customs laws. ... We are in a global economy, and if we can get the quality and service from other areas in the world, we're going to do it. We want to be flexible."

'We Can Do Anything We Want to Do'

TSI's marketing strength will be in full flower for spring 1999 as it launches new, updated looks across all of its lines. The enhancements encompass packaging and labeling as well as fabric content and trimming, which are geared toward creating a different feeling and image for each brand.

Likewise, the company's merchandising versatility can be seen in the form of thousands of in-store shops it is maintaining for both its brands and its private label customers. One of the most notable in-store programs the firm has embarked on recently is with Wal-Mart, where TSI has taken the retail giant's first men's casual slacks in-store shop from concept to reality.

As Lightman explains: "We created an environment- which is being rolled out right now to 500 doors and soon to 1,200 doors that fundamentally concentrates on casual slacks, whereas in the past Wal-Mart had shirts, accessories and maybe even underwear mixed into its casual slacks area. ... We also suggested, and they agreed, that we run some new products that are a little more updated and with the market. ... It's been so successful that we have now put in two prototypes in Puerto Rico, and we're doing a five-store test in Wal-Mart Mexico."