Choosing the right supplier is important and involves considering many factors beyond just price. These factors include quality, reliability, service, and how well a supplier can meet your business needs and strategy. Effective suppliers offer products or services that match or exceed your business requirements. When selecting suppliers, it is important to do research through recommendations, directories, trade associations and other advisors. Key factors to consider include price, reliability, stability, location, and developing partnerships. The best suppliers will communicate proactively about quality issues or changes that could impact production availability.

1. POTENTIAL SUPPLIERS AND
VALUE/
SUPPLY CHAIN IN RELATION TO
BUSINESS ENTERPRISE
MODULE 9

2. Choosing the right supplier involves
much more than scanning a series of
price lists. Your choice will depend on a
wide range of factors such as value for
money, quality, reliability, and service.
How you weigh up the importance of
these different factors will be based on
your business priorities and strategy.

3. Businesses focus on performance
that is why companies have to look
the right supplier, just as they have
to look the right employees. The
interconnectedness of every
element needs to play an
appropriate role to have a
successful supply chain.

4. POTENTIAL SUPPLIERS OF RAW MATERIALS
•The most effective suppliers are
those who offer products or
services that match - or exceed -
the needs of your business.

5. IDENTIFYING POTENTIAL SUPPLIERS:
1. Recommendation
s
2. Directories
3. Trade associations
4. Business advisors
5. Exhibitions
6. Trade press

6. GETTING THE RIGHT SUPPLIER FOR YOUR BUSINESS:
1.Know your needs
2.Spend time on research
3.Ask around
4.Credit check potential
suppliers
5.Price isn't everything
6.Don't buy from too
many suppliers

7. HERE ARE SOME FACTORS TO CONSIDER IN
SELECTING POTENTIAL
SUPPLIERS OF RAW MATERIALS AND OTHER
INPUTS:
1.Price
2.Reliability
3.Stability
4.Location
5.Developing Partnerships

8. A SUPPLIER IS WITH A STRONGER BUSINESS
PARTNERSHIP IF IT PROVIDES THE
FOLLOWING:
•1. Do in advance, what is required from the
manufacturer and start to take the leadership
role in communication.
•2. Notify and communicate the manufacturer if
quality problem is identified that limit
production availability.

9. VALUE/SUPPLY
CHAIN

12. SUPPLY CHAIN
• Defined as a tool of business conversion that reduces costs
and maximizes customer satisfaction by providing the right
product at the right price at right time at the right place and.
It involves all activities in the distribution through a product
transmission that reaches the final user while remaining
profitable and competitive.
• Uses a process that control and plans the operation known as
Supply Chain Management. It manages the flow of raw
material, within the business and the flow of finished product
to the end user along with full customer satisfaction.

13. THERE ARE FIVE (5) MAIN ELEMENTS OF SUPPLY CHAIN
MANAGEMENT:
• 1. Producing and designing a product to meet
consumer request
• 2. Obtaining the raw materials required to produce the
products
• 3. Manufacturing and developing the products
• 4. Distributing the product to consumers/customer
• 5. Accepting and processing returns of defective
products

14. VALUE CHAIN
•Michael Porter pioneered the concept of
value chain in his 1985 book "Competitive
Advantage: Creating and Sustaining Superior
Performance."
•He used this concept to show businesses add
value to their raw materials to produce
products that finally sold to the market.

15. FIVE STEPS IN THE VALUE CHAIN
PROCESS
1.Inbound Logistics
2.Operations
3.Outbound Logistics
4.Marketing and Sales
5.Service