FASH455 Exclusive Interview with Michael Lambert, Executive Director of Global Trade and Compliance of Urban Outfitters, about Trade Compliance and Global Apparel Sourcing

About Michael Lambert

Michael Lambert is the Executive Director of Global Trade and Compliance at Urban Outfitters (URBN). He also serves as the Vice Chair of the Board of Directors of the United States Fashion Industry Association (USFIA).

Michael has spent over 30 years in the retail fashion business, primarily in the import/export and Customs compliance area. At URBN, Michael is responsible for Customs, Social, Vendor and Regulatory Compliance. Urban Outfitters has a global footprint, with stores in the U.S., Canada, Europe and the United Kingdom.  Urban Outfitters designs and develops products throughout the world, working with a core vendor base across more than thirty countries. Prior to Urban Outfitters, Michael spent nine years with Limited Brands as head of their Import Planning department.  He spent his last two years with Limited Brands in London, setting up Compliance activity for Limited Brands as they expanded overseas.

Michael has been a Licensed Customs Broker since 1998 and is a graduate of Pennsylvania State University, with a Bachelor of Arts in International Politics and Foreign Service.

About Emilie Delaye (Moderator)

Emilie Delaye is a 2024 UD entrepreneurship graduate and an incoming UD graduate student in fashion and apparel studies. Emilie is the recipient of the 2024 UD Alumni Association Alexander J. Taylor Sr. Awards for Outstanding Seniors.

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Author: Sheng Lu

Professor @ University of Delaware

9 thoughts on “FASH455 Exclusive Interview with Michael Lambert, Executive Director of Global Trade and Compliance of Urban Outfitters, about Trade Compliance and Global Apparel Sourcing”

  1. After watching this discussion between Dr. Lu, Mr. Lambert and Emilie, I learned a lot about compliance among sourcing in the fashion industry. It was particularly interesting to hear it from the perspective of a brand such as Urban Outfitters which has so many different product offerings, causing URBN to rely on many different vendors. From what Mr. Lambert said in the video, it seems that URBN stresses ethical sourcing in their own sourcing practices. Mr. Lambert mentioned a concept that I had never heard of before, admissibility issues. Admissibility issues are issues that arise when goods can’t even be imported into the United States if there are problems with their supply chain pertaining to ethical labor and sourcing. I had never heard of this before and I wonder what the exceptions are because I know that fast fashion goods still enter the country frequently. A specific issue that stood out to me that Mr. Lambert said URBN faces is finding factories with ethical labor practices, that aren’t already bombarded with other orders. This was in a way good to hear because it means that many brands are competing over doing business in ethical factories, rather than fast fashion factories.

  2. I really enjoyed hearing about Michael’s insights and expertise regarding apparel sourcing, manufacturing, and trade compliance. He did an excellent job explaining the nuances and complexities of this sector we’ve worked to tackle in class, and provided examples and explanations that were concise, yet detailed and understandable. Paying anywhere between an additional 15% and 35% upon import is no small feat especially for a company like Urban Outfitters that some higher-end, more expensive products, as well as cheaper products at a mass scale. Being able to anticipate the costs a company incurs upon import will allow those companies to properly budget and allocate funds, but publicizing these fees I think would greatly help consumers stomach price points that might usually drive them away from making a purchase. This ties in nicely with a theme that Michael continuously returned to through his lecture: his industry is all about providing the customer with exciting products that they feel comfortable buying. While the sentiment might be simple, the means of achieving it are far from simple. New technologies (implementing AI as a means of classifying products among import or providing an initial review of social compliance audits of factories), and industry trends (movement towards recycled products and content, engaging with industry associations like AAFA, NRF, or USFIA) are promising in that they prove retailers like UO are conscious of where they could improve today, but also of exactly where they hope to be in the future.

  3. It was very interesting hearing Michael Lambert’s insights as the Director of Global Trade and Compliance at a company as expansive and popular in the U.S. market as Urban Outfitters. His role in the company means juggling many relationships, regulations, and social responsibilities that relate to trading practices; a side of the fashion industry most don’t get to see.

    In class, we’ve talked a lot about sourcing diversification in U.S. fashion brands and why this has become a trend in recent years. Lambert touched on Urban Outfitters point of view regarding this method of manufacturing, the drawbacks, and benefits. He outlines how sourcing diversification has resulted partially from the push to move out of china due to tariffs, risk of forced labor in the cotton industry, and our political relationship with the country. More specific to Urban Outfitters, Lambert makes an interesting point that factories usually specialize in a certain product, limiting the amount of products one factory can offer to a brand. Urban Outfitters carries a very wide-variety of garments in different materials, which cannot be manufactured all in one place. This is another large component of sourcing diversification for the brand. Some of the drawbacks of this is managing all of the factories and vendors you’re sourcing from, as well as the U.S. regulations put on imports from different countries.

    This leads into another interesting point Lambert discussed in his interview: AI technology and sourcing opportunity. Lambert has already been working with the brand to utilize AI in trading and sourcing practices and outlines the two major ways the technology could have an impact. One of these is the classification of product that is mandatory for U.S. imports. Every product being imported needs a tentative classification number that is assigned at the time of importation, which shows the government exactly what is being brought into the country. AI could cut this very time-intensive process down extensively, which could then be fact-checked by a human. Another area AI could domineer is performing reviews of social compliance audits. Depending on the amount of factories being sourced from, a brand can receive hundreds of audits that have to reviewed carefully for any concerning practices. AI could save the brand a lot of time by reviewing the documents for any buzz-words or troubling procedures. The flagged audits would be able to be investigated in a much more timely manner with the help of AI technology.

    Lambert brought up many interesting points, issues, and initiatives within global trading and sourcing at Urban Outfitters. He allowed us to understand the complexities that come with apparel sourcing around the world, the supply chain, government regulations, and social responsibility to consumers. After listening to this interview, I feel I have a better understanding of what fashion brands are prioritizing in sourcing methods and what the future will bring for these strategies.

  4. After watching the discussion with Michael Lambert, I noted several key takeaways. Mr. Lambert emphasized the importance of trade and compliance risks for fashion companies today. When he first joined the team at URBN, there were only 8 members, but now the team has grown to 35 people. According to Mr. Lambert, this growth is due to the increasing complexity of global trade, which will continue to become more intricate rather than simpler. Sustainability and social responsibility have also become priorities in working with government agencies and complying with state laws in sourcing.

    Another significant topic discussed was the rise in compliance risk, which forms a major part of Mr. Lambert’s daily responsibilities. This increase can be attributed to factors such as conflicts in the Middle East, the need to divert container ships to safely deliver products to the U.S., limited availability on container ships, concerns over forced labor (like the Uyghur Forced Labor Prevention Act), and the prohibition of cotton sourced from the Xinjiang region in China. Additionally, it has become increasingly challenging for companies to trace materials down to the raw material level to ensure transparency in the supply chain. Lastly, finding manufacturing partners who meet URBN’s ethical and environmental standards remains difficult, as these suppliers are often overwhelmed with orders from other companies.

    Overall, I found this interview very informative and I enjoyed getting a first hand perspective on the content we are learning in class. 

  5. Michael was a great guest speaker and was highly informative! One thing I learned from him was about the vetting process that URBN and many brands go through before choosing which vendors to work with. I was not previously aware of this process and learned that it is a critical process of assessing suppliers, vendors, and manufacturers to ensure they meet specific ethical, quality, and regulatory standards. This process involves evaluating various aspects, including labor practices, environmental impact, production capabilities, and adherence to regulations like customs and social compliance. Given rising concerns over forced labor, especially in sensitive regions such as the Uyghurs forced labor camps that were mentioned, fashion brands increasingly prioritize vetting to align their supply chains with human rights standards and sustainability goals. Effective vetting reduces risks, supports transparency, and helps maintain brand reputation in a competitive market. I also found his view on AI being incorporated in the trade compliance sector to be really interesting. Michael supports the use of AI because of the fact that there is a lot of data that that goes along with these international transactions and AI could tremendously aid in the classification of products, which I can understand because these numbers can be a slow and tedious process that could be expedited with the use of AI. 

  6. I found the interview to be very intriguing, as well as the sector of trade compliance and social responsibility. Hearing how much goes into sourcing from new factories and what countries to source from sounds like a very complex job, but one that keeps you on your toes. One part I found particularly interesting is how it is ideal to keep the number of vendors limited due to all the documentation necessary. However in URBN’s case this is quite challenging due to URBN’s wide product range. Mr. Lambert gave an example of how some factories specialize in sweaters and some in other areas, leading companies to have to source from various vendors. It makes me wonder about other fashion retailers like Macys or JCPenny that offers an even wider product range than URBN. Are they also trying to limit the number of vendors they source from, and if so how are they doing it while still offering such a wide product assortment. Another takeaway I found interesting was how, when importing to the US, tariffs can be anywhere from 15% to 35%. This extra cost is on top of the original cost of goods. This highlights how important it is for fashion companies to utilize trade agreements, like CAFTA-DR. I think these two takeaways- limiting vendors and importance of trade agreements- can play into each other. For example, we know that countries Central American countries in CAFTA-DR specialize in making basic cotton garments. Perhaps URBN, or other brands, can use this to their advantage. Not only would brands receive duty-free benefits but also know that they are receiving quality product free from forced labor.

  7. Great Interview! Michael Lambert shared fascinating insights into the role of trade compliance in the fashion industry. He highlighted that global trade compliance never becomes less complex, emphasizing the awareness the U.S. government has focused towards forced labor in supply chains. He noted this shift as a primary reason social compliance has now become a regulatory aspect of global trade, ensuring there is no forced labor in the supply chain. He highlighted this as a critical point, as forced labor could lead to admissibility issues etc. Michael also pointed out that supply chain diversification has helped mitigate risks.

    As a student, I found it especially insightful to hear about the career opportunities in trade compliance. Michael emphasized the high demand for professionals in this field. He encouraged gaining experience and highlighted how trade compliance blends fashion, business, and legal aspects, making it a fulfilling and evolving career path.

  8. This was such an engaging interview! Several points stood out to me that connect to what we’ve learned about fashion brands and retailers’ sourcing strategies. Lambert talked about how important it is for companies to stay compliant with global laws and regulations when sourcing products. He also mentioned how trade rules and tariffs can change, so brands need to be flexible and have multiple suppliers to reduce risk. This ties into our class discussions about how diversifying sources helps brands avoid problems if one region or supplier faces issues. Michael Lambert also pointed out how technology is helping companies manage their supply chains more efficiently, which is something that fashion companies are beginning to adapt to in most recent years. He touched on sustainability and ethical sourcing, which shows how consumers are pushing brands to be more responsible about their environmental and social impact. I also noticed how changes in trade policies and tariffs, which is something we need to keep in mind when planning strategies. Overall, Lambert’s points show that a good sourcing strategy needs to focus on compliance, flexibility, risk management, and sustainability to succeed in today’s global trade environment.

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