Material Exchange adds to AI-powered sourcing solution

15/12/2025
Material Exchange adds to AI-powered sourcing solution
Over the course of 2025, digital sourcing platform Material Exchange has been adding new AI-powered features to its roster of services and to the capabilities of its chatbot Frank. The New York-based company has been focusing on two main sectors, footwear, a market whose supply chain can involve thousands of suppliers, and jeans, a more compact sector but a very forward-looking one, Zaki Saleemi, head of sales, told Inside Denim. 

The digital tool is designed to help design and sourcing teams streamline the selection process of new materials, with a special focus on innovation and sustainability. A user can upload a product brief and ask Frank to make a selection from the company’s existing network of suppliers as well as suggest options beyond that scope. “We centralise exchanges between a brand’s team and mill teams. This creates a more intelligent and efficient way to communicate. It helps clear the clutter,” said Material Exchange CEO Darren Glenister. He pointed out that a single brand may work with a dozen suppliers, bringing all relevant information together in a single online space speeds up the decision-making process and promotes the sharing of information in both directions. Brands can better assess a mill’s offering, and mills can better understand what brands are looking for. 

The tool can also be used to meet ESG goals. “This platform gives brands access to information on their Tier 2 suppliers, as we have now integrated data from the Worldly FEM module,” Mr Glenister said. This will help inform future digital product passports. 

Material Exchange, and its AI-assistant Frank, can also be a source of information on new developments and specifically on more sustainable processes. A user can upload a material to Frank, who will be able to explain what type of eco-processes was used. “He can provide detailed information on different types of waterless processes,” noted Mr Glenister. For denim, he can also provide the cultural context of different washes by accessing a database covering the evolution of jeans over time. This can be useful to train junior buyers, he pointed out, as well as keeping up to date on the latest innovations that mills are offering. 

New options are being introduced to help designers and buyers at shows. For the past few seasons, Material Exchange has been aggregating denim innovation data presented at Kingpins, which is added to the database and also used for a special display of the most sustainable denim products at the show. 

For next year, it is working on a new system that will allow users to photograph each hanger they select at a show, upload it to their online space, with the possibility of adding voice notes. Frank will then keep a tab on what the buyer has picked and analyse the selection. “Frank will summarise the selection, compare and check against historical sales and styles. He does the data crunching,” said Mr Genister. “Generally, selecting the right fabric can take three to eight days. Frank does that work, he will identify the best fabric for a given product.” 

Material Exchange’s digitalisation process for denim is essentially used for reference, not for digital design software. It basically provides a digital version of the hanger, with renditions of standard washes. “The data set is more or equally important as the digital image of the fabric,” said Mr Saleemi. “Designers still need to touch and feel, but data is key, and as sustainability becomes more important, we are filling in those data gaps. Historically, touch and feel came first, but now, data comes first. This platform can be a game-changer for decision makers,” he said. 

The company’s business model is to offer suppliers different packages that offer varying degrees of visibility and depth of brand relationships. “Building brand relationships takes time, what we do is to add visibility, even for those mills that don’t otherwise have access to a brand,” said Mr Genister.