Matching Supply with demand

When brands require supply from verified farms with full transparency and genuine provenance, qualifying farms must be identified. These farms no only need to meet all the criteria for animal welfare and land management but need to have wool available on a timeframe that meets the requirements of the supply chain. Unlike the commodity supply model this requires some simple planning.

Detailed below is our three step planning process.

…& the need for planning

Breeding sheep and growing wool is generally regarded as a twelve month cycle. However growers shear sheep at different times of year to suit their production system or the climatic conditions under witch they operate.  Different categories of sheep may be shorn at different times of year. Some growers are able to adjust shearing dates to ensure the wool meets specification or to meet the delivery needs of a customer.   All this points to the need for planning.


Step 1

Indication

Timeline

9 to 12 months prior to date raw wool will be required at topmaking plant

Status

Indication

There is no firm commitment by the brand at this stage

Action by Brand

The brand is indicating that it is likely that they will be asking NewMerino to facilitate supply in accordance with the details below:

  1. Name of program
  2. Volume indication
  3. Specification (tops or greasy wool)
  4. Date greasy wool should be delivered to topmaker
  5. Likely supply chain partners

Action by NewMerino

  • Include this volume indication in our supply planning as a potential demand side obligation.
  • Work with brokers to ensure suitable growers are registered on the ‘supply alliance’ wool forecasting system.

Step 2

Forecast

Timeline

Six months prior to date raw wool is required at topmaking plant

Status

Forecast

This is a forecast  of what is likely to be a full commitment in three months

Action by Brand

  1. Provide date by which firm commitment will be given
  2. Confirm volume forecast
  3. Confirm specification
  4. Confirm date greasy wool would be required to be delivered to topmaking plant
  5. Confirm supply chain partners

Action by NewMerino

Identify suitable growers with the potential to supply to this specification, time frame and accreditation requirements.

Update grower’s production forecast with particular attention to:

  • shearing dates
  • season impact
  • accreditation of farm

Step 3

Commitment

Timeline

Three months prior to date raw wool is requires at topmaking plant

Status

Commitment

This is a full commitment enabling the transaction to proceed

Action  by Brand

Brand required to:

  1. Confirm volume
  2. Confirm specification
  3. Confirm time line
  4. Authority to proceed

Action by NewMerino

  • Ensure farm audits and documentation is completed.
  • Work with broker and exporter to facilitate sale transactions to meet shipping deadlines.