The communication vacuum in the wool supply chain - insights from an exploratory study of the Australian apparel wool textile industry

Supply chain management is currently receiving much attention in the wool textile industry especially following recent wool industry enquiries in Australia and New Zealand that have highlighted the need for improved communication between processors and wool growers. Supply chain management is also seen as a way of improving on-farm innovation, which is currently low compared to other agricultural and fibre industries. Improved communication is the key yet there are a number of barriers to the development of this communication including 'biological tag' and the presence of 'functional silos' due to the traditional 'arms length' approach to wool fibre procurement. This paper highlights the weaknesses inherent in the traditional approach to wool marketing and provides some evidence of a change in trading arrangements as stakeholders in the Australian apparel wool supply chain recognize the need for change and seek to create vertically co-ordinated supply chains from wool grower to garment manufacturer.