COTTON BUYING is the most important function that will contribute to optimum profit of a Spinning Mill.
EVALUATION of cotton quality is generally based more on experience rather than scientific testing of characteristics only.
TIMING of purchase depends on comprehensive knowledge about various factors which affect the prices.
CHOOSING the supplier for reliability of delivery schedules and ability to supply cotton within the prescribed range of various parameters which define the quality of Cotton.
BARGAINING for lowest price depends on the buyer’s reputation for prompt payment and accept delivery without dispute irrespective of price fluctuations.
ORGANIZING the logistics for transportation of goods and payment for value of goods will improve the benefits arising out of the transaction.
PROFIT depends on producing high quality Yarn to fetch high prices. Influence of quality of raw material is very important in producing quality Yarn. But, quality of yam is a compound effect of quality of raw material, skills of work-force, performance of machines,- process know-how of Technicians and management expertise.
A GOOD SPINNER is one who produces reasonably priced yarn of acceptable quality from reasonably priced fiber. Buying a high quality, high priced cotton does not necessarily result in high quality Yarn or high profits.