Articles

From Slashing Inventory to Maximizing Gross Profit: How FULL KAITEN's AI Is Reshaping the Supply Chain

2026.06.11

FULL KAITEN Inc. is tackling the apparel industry's structural inventory problem with its unique AI solution. When we interviewed them three years ago, the company was helping businesses reduce their inventory using only their "FULL KAITEN" inventory analysis system.

Today, however, the company has dramatically evolved. Its focus has shifted from solving the problems of individual companies to optimizing the entire supply chain. In our interview with Daisuke Tanaka, CPO of FULL KAITEN Inc., we'll dive into how the company's concept has developed, its strategy for bringing that vision to life with multiple products, and the cutting edge of how it's applying AI.

PROFILE

Daisuke Tanaka

Daisuke Tanaka joined Accenture Japan K.K. right after graduation. He worked on a variety of business transformation and DX projects in the areas of MD, DB, and store operations, primarily for major apparel companies. He later served as the Head of Store Operations at L’Occitane Japon K.K. and as a Manager in the Corporate Strategy Office at CAINZ CORPORATION. He then came on board at FULL KAITEN Inc., the developer and provider of the "FULL KAITEN" analytics system that turns retail inventory into profit. Leveraging his extensive industry knowledge and project experience, he supports a wide range of clients. After serving as the Head of Customer Success and General Manager of the Product Strategy Department, he became an Executive Officer and Head of Product in October 2024. He was appointed Director and CPO in March 2025. X Account: https://x.com/dtanakax

A Shift from Slashing Inventory to Maximizing Sales and Gross Profit

The origins of "FULL KAITEN" are rooted in founder and CEO Naohiro Segawa's own harrowing experience of facing bankruptcy three times due to inventory problems in a B2C business he previously ran. His method of overcoming the crisis by quantifying each piece of stock—a unique approach he calls "the science of inventory"—laid the groundwork for the company.

When the FULL KAITEN business launched, its main theme was "inventory reduction." However, simply cutting inventory can lead to a downward spiral and stunt growth. Growing sales requires more inventory, which in turn increases the risk of unsold products. Tanaka explained the thinking behind their shift in concept to address this retail trade-off.

"Focusing solely on inventory reduction is just a period of holding back. That won't satisfy shareholders or employees. Around 2023, we saw a growing demand for a business model that could maximize sales and gross profit while unlocking the full potential of existing inventory."

Coming out of the COVID-19 pandemic, many companies began to limit procurement and focus on how to maximize sales and profits with the stock they already had. Tuning into this market shift, "FULL KAITEN" pivoted from being just an inventory reduction tool to a "sales and gross profit maximization" solution that proactively drives company growth.

Solving inventory problems with IT to maximize gross profit

The Complete Picture of the Multi-Product Strategy

The biggest update born from this shift was the move to a "multi-product" strategy. The apparel value chain consists of multiple stages, from planning and production to initial allocation, inter-store transfers, sales promotions, price adjustments, and finally, markdowns or disposal. At every stage, there's a lurking risk that can eat into gross profit.

"We used to approach inventory with a single product, but we realized we needed products that could drive the right actions at each specific point in the operation where gross profit was being lost," Tanaka explains.

With this philosophy in mind, the company began a full-scale rollout of a suite of products specializing in each operation in 2023. Tanaka breaks down their core functions.

"For example, 'Warehouse Shipment' optimizes the allocation of inventory by anticipating future demand based on daily, SKU-level sales forecasts for each store. Instead of just replenishing what's sold, its key feature is preventing lost sales opportunities."

"And 'Inter-Store Transfer' uses AI to automatically detect inventory imbalances—where one store has a surplus while another has a shortage—and recommends optimal stock transfers between stores."

Instead of a brand-wide view, the system breaks down data by store, highlighting the unique characteristics of each.

Additionally, there is a 'Price Change' feature designed to maximize end-of-season sales. This function simulates and recommends the necessary discount rate to sell out products by a set deadline, based on price elasticity calculated for each SKU. The objective is to increase the sell-through rate while minimizing any loss in gross profit. These action-oriented products serve as concrete measures to protect gross profit.

The Role of 'Inventory Dock': Getting the Big Picture to Identify Issues

Within this product lineup, 'Inventory Dock' plays a somewhat different role. It is not a tool for executing specific actions, but rather an analytical product for diagnosing the entire organization's inventory status and visualizing challenges.

Tanaka describes 'Inventory Dock' as 'the control tower that serves as the starting point for action.' He adds, "The AI analyzes and visualizes the sales potential and inventory risks of the current stock at various scales, such as company-wide, by business division, store, or area. This makes it clear where the issues are and what actions should be taken next."

'Inventory Dock' Unlocks the Full Potential of Your Stock

This 'Inventory Dock' pinpoints the root causes, and based on that information, action-oriented products like 'Warehouse Shipment' and 'Inter-Store Transfer' suggest concrete solutions. This synergy enables companies to implement comprehensive and efficient, data-driven inventory control.

'Store Agent': An AI Guide for Retail Staff

Then, in April 2026, FULL KAITEN launched a new product called 'Store Agent.' This is a store-focused SaaS developed to support the work of busy retail staff.

"It is a service that acts like an agent, where an AI provides clear instructions on a tablet, showing staff what they need to do to improve that day's sales."

The system reads daily data for each user, enabling precise instructions.

Store managers and staff just need to log in after arriving at work to instantly get a handle on sales-driving information, like "products to focus on today" and "bestselling items across all stores, in the area, and at other nearby locations." Complex data analysis isn't necessary. By simply following the AI's recommendations, they can take effective action, freeing them up to concentrate on what they do best: customer service and improving visual merchandising (VMD).

The company has already received glowing feedback from businesses that have decided to adopt the system, with one client planning a rollout to approximately 150 stores. It’s a flagship product that showcases where the company stands today with its AI utilization, poised to boost sales and gross profit on a per-store basis while lightening the workload for frontline staff.

Upgrading Client Workflows Through a Hands-On Partnership

Even the most high-spec system won't deliver results unless it's fully integrated into daily operations on the ground. That’s why FULL KAITEN focuses heavily on the post-implementation process.

"You can't just hand over a system and say, 'Here you go, please use it.' It will never stick. The key is figuring out how to transition from the client's existing operations and build a new flow. High-touch support—sitting down side-by-side to overhaul their workflow together—is absolutely essential."

From the initial decision to implementation and data integration takes two to three months. Building out the actual workflow and measuring its impact takes several more. The company anticipates a six-to-twelve-month timeline for new business processes and results to materialize. Along the way, it’s not uncommon to encounter pushback from staff who have built their careers on years of experience and intuition.

The key to breaking through that wall, he says, is "to show them the numbers." "There's a clear difference in outcomes between staff who take action based on the AI's recommendations and those who tweak things based on their own gut feelings. By presenting this as objective data, we get their buy-in on the effectiveness of leveraging AI."

"By building on these successes, it’s crucial to cultivate a specific mindset right from the initial stages of implementation: 'The system doesn't deliver results on its own—we are the ones who use the system to achieve them'," Tanaka shared.

A Grand Ambition: A Data Platform to Optimize Inventory Across the Entire Industry

FULL KAITEN plans to move further up the supply chain, expanding its solutions to encompass production planning. But as Tanaka explains, his true ambition lies even further ahead.

"Our most valuable asset is the 'database' itself, which houses sales and inventory data from multiple companies, all organized into a clean, standardized format. We believe that as this database evolves, it will enable us to offer value that transcends solving problems for individual companies."

This database will serve as a foundation, allowing companies to objectively benchmark their sales trends and inventory turnover against the rest of the industry. For businesses that have only ever had access to their own internal data, understanding where they stand is a game-changer for plotting their next strategic moves.

And as this concept spreads across the entire industry, the world that FULL KAITEN envisions starts to take shape.

"If we can build an industry-wide database, we can generate industry-wide demand forecasts, which helps manufacturers optimize their production volumes. For existing stock, it might even be possible for companies to share inventory with each other—what you might call an 'industry-wide inter-store transfer.' If we can identify surpluses and shortages at each company, transcending corporate barriers, and then adjust production and inventory allocation accordingly, we can optimize stock levels for the entire industry. This would make a huge dent in solving the structural problem of mass waste."

Moving beyond maximizing profits for individual companies to optimizing inventory for the entire industry. The vision that FULL KAITEN lays out has the potential to transform the very fabric of the apparel supply chain.