Stitching the Future of Apparel Sourcing in a Dynamic Global Landscape

By: Mahima Paul, Head of Sourcing, Sainsbury's

Mahima Paul is an experienced sourcing professional with over 18 years in sectors like Apparel, Home, Furniture, and Compliance. Currently leading Sainsbury's Argos Asia – India, she excels in global supply chains, fostering collaboration, and mentoring teams. Passionate about driving success in diverse, inclusive environments.

In an insightful interaction with Women Entrepreneurs Review Magazine, Mahima shares her insights on the evolving clothing industry, addressing sustainability challenges, global disruptions, shifting consumer preferences, and emerging technologies like AI. She highlights strategies for balancing cost-efficiency with ethical sourcing, leveraging innovations, and learning from other sectors to optimize sourcing and performance.

In the current clothing industry landscape, with the challenges posed by sustainability demands, global supply chain disruptions, and shifting consumer preferences, how will sourcing strategies evolve in the next 3-5 years?

The last three years have presented unique challenges, and we expect the landscape to remain volatile for the foreseeable future. From ‘macro considerations’ such as new global politics to ‘local considerations’ of volatility in manufacturing countries to the evolving sourcing trends; sourcing strategies of the future are all about minimising disruption within global supply chain while continuing to extract the maximum value from how we buy.

I am certain that there will be an increased focus on 5 key areas in all sourcing strategies that will help companies navigate the evolving landscape and position themselves for success in the coming years.

Risk Management and Resilience: This is already a focus however we will see it intensify further. This involves diversifying supplier bases and investing in technologies that enhance supply chain visibility

Supplier Collaboration: Building stronger relationships with suppliers will be crucial than ever. Collaboration and working closely with suppliers help to ensure resilience, innovation in their supply chains, and improve overall efficiency.

Sustainability and Compliance: Increasing regulatory and environmental, social, and governance (ESG) demands will heavily influence sourcing decisions. Companies will need to adopt more sustainable practices and ensure compliance with new regulations

Nearshoring and Regional Sourcing: Companies will increasingly consider nearshoring to reduce lead times and improve quality of stock.

Cost Management and Innovation: We need to look for innovative ways to reduce costs without compromising on quality or sustainability.

How will the shift towards localization and near shoring impact long-term global sourcing strategies? How can companies balance cost-efficiency with ethical and sustainable sourcing?

Near shoring is indeed an area of focus that allows us to diversify supply chain risks by reducing dependency on a single location and drive a more balanced sourcing strategy. Faster lead times can help us respond to customer preferences rather quickly and allow optimum buying and hence reduce inventory costs.

However, balance is the key. Ethical and sustainable sourcing should be at the heart of any brand and there are many ways to keep us in check.

Supplier Audits and Certifications should be regularly monitored to ensure suppliers meet all ethical and sustainable standards. Reputed audit bodies such as BV (Bureau veritas) and SGS collaborate with brands and provide robust audits at all locations. Invest in frequent visits to the manufacturing sites for transparency and visibility.

Cost-Benefit Analysis: Conduct thorough cost analysis via tools such as ‘open costing’ to understand the long-term savings and benefits of sustainable practices. While initial costs might be higher, sustainable sourcing can lead to savings through improved efficiency and brand loyalty.

Long-Term Supplier Relationships: Building long-term relationships with suppliers can lead to better pricing and more reliable adherence to ethical standards. This collaboration can also foster innovation in sustainable practices

Consumer Engagement and awareness: Educate and engage consumers about your ethical and sustainable practices. This can justify higher prices and build a loyal customer base willing to support your efforts

Innovative Materials and Processes: Invest in research and development of sustainable materials and processes. Innovations like recycled fabrics, biodegradable materials, and energy-efficient manufacturing can reduce costs and environmental impact

With emerging revolutionizing sourcing and product development, how can industry leaders leverage these tools to enhance category performance and streamline the sourcing lifecycle?

AI is set to revolutionize sourcing decisions in several impactful ways. It can provide predictive insights into market trends, helping companies make more informed sourcing decisions. This includes forecasting demand, identifying price trends, and anticipating supply chain disruptions.

By investing in tools that help with enhanced risk management, companies can mitigate risks before they become significant issues and hurt profits.

Data management is a critical area in retail /sourcing and with the emerging technologies, we can analyze vast amounts of supplier data and support our selections based on cost, quality and reliability, providing a more objective and efficient selection process. With real time data and analytics, decision making can be faster and more accurate improving overall efficiency & competitiveness.

By analyzing historical data and market conditions, AI can help identify opportunities for cost savings without compromising on quality. This includes optimizing inventory levels and negotiating better terms with suppliers.

All these advancements will enable companies to streamline their sourcing processes, reduce costs, and improve supply chain resilience.

In managing a global team of sourcing professionals, how do you foster collaboration and innovation across different geographies and cultures? Which leadership practices can drive a cohesive and high-performing team in today’s complex sourcing environment?

Working with a global team has been the most enriching part of my overall experience. Over the years, I have learnt to adapt to very different cultures and mindsets yet driven efficiencies through very diverse teams. This has required a blend of strategic leadership practices underpinned by strong company and my personal values.

Setting Clear Goals and Expectations: Clearly defined goals and expectations help team members understand their roles and responsibilities. This clarity drives accountability and ensures everyone is working towards the same objectives.

Building Trust& Collaboration: Trust is the foundation of any cohesive team. I have always believed in fostering an environment where team members feel safe to speak their minds and express their ideas and concerns openly. This can be achieved through transparency, consistent open communication, and demonstrating integrity.

Providing Support and Resources: It is important that our teams have the necessary resources and support to perform their tasks effectively. This includes training, tools, and a supportive work environment. By setting up cross-functional teams and promoting knowledge sharing helps in leveraging diverse skills and perspectives, leading to innovative solution.

Promoting a Positive Work Culture with consistent recognition: A positive work culture that values diversity, inclusion, and work-life balance can significantly enhance team cohesion and performance. With regular appreciation of our team members, they remain motivated and reinforces positive behaviours and drive high performance.

What can the apparel industry learn from other sectors when it comes to optimizing sourcing strategies and category performance management?

Having had the wonderful opportunity to work across such diverse product categories, I have learnt that apart from using very different substrates and end use, the principles of sourcing remain the same. However, there are still many valuable insights that the apparel industry can gain from other sectors to optimize sourcing strategies and category performance management.

Supplier Collaboration/ Consolidation: An area for all to improve however more in the apparel sector where we must build closer collaboration with key & strategic suppliers to drive innovation, quality, and sustainability and cost effectiveness.

Supplier Diversification: Home/ Hard goods sectors frequently diversify their supplier base to mitigate risks and ensure a steady supply of materials. Clothing sector can benefit from a similar approach, reducing dependency on a single region or supplier and enhancing supply chain resilience

Customer-Centric Approach: The retail sector emphasizes understanding and responding to customer needs. Apparel companies can benefit from a customer-centric approach by using data analytics to tailor their products and sourcing strategies to market demands.

Sustainability Initiatives: Other categories like ‘seasonal’ and even the ‘food industry’ has made significant strides in sustainability, focusing on ethical sourcing and reducing environmental impact. Apparel sector can learn from these initiatives by incorporating more sustainable materials and processes, and by promoting circular economy initiatives like recycling and upcycling are a huge opportunity for the future.