A supply chain is an integrated and co operative approach by organisations that aims to satisfy the expectations of customers and participants. This means sharing information and resources and working closely together instead of in isolation. Wool will compete successfully with man made fibres when the supply system can deliver volume, information, services, quality and customer satisfaction better than its competitors. This will only be achieved through openness and cooperation.

Supply chains can be established in many different ways but can be identified in two main categories, horizontal and vertical.

Horizontal alliances: Horizontal alliances are between organisations at the same level and with common interests and objectives. An alliance at this level provides collective strength in commercial negotiations and an ability to effectively share information. Wool grower supply (marketing) groups could be an example of this.

Vertical alliances: Between companies and organisations operating at different levels, using different processes or requiring specialised services in the chain. The collective strength of the individual organisations working cooperatively provide the competitive advantage against others operating in the same market place. The challenge for wool is for the individuals and organisations to learn how to treat others in the chain as a member of the same team or part of the same organisation while still operating as a unique business unit.

Peter Vandeleur is the driving force behind e wool.
Geoff Keynes is the General Manager of direct buying at GH Michell in Adelaide.
David Pardoe is a spinner currently working with Woolmark.