9 Potential Suppliers of Raw Materials Themost effective suppliersare those who

offer products or services that match - or exceed - the needs of your business. So,
when you are looking for suppliers, it's best to be sure of your business needs and
what you want to achieve by buying, rather than simply paying for what suppliers
want to sell.
IDENTIFYING POTENTIAL SUPPLIERS:
You can find suppliers through a variety of channels. It is best to build up
ashortlistof possible suppliers through a combination of sources to give you a
broader base to choose from.
1.Recommendations=ask friends and business acquaintances. You're more likely to get
an honest assessment of a business' strengths and weaknesses from someone who has
used its services.
2.Directories=if you're looking for a supplier in your local area, it's worth
trying directories such as Yellow Pages.
3.Trade associations=if your needs are specific to a particular trade or industry,
there will probably be a trade association that can match you with suitable
suppliers.
4.Business advisors=local business-support organizations, such as chambers of
commerce, can often point you in the direction of potential suppliers.
5.Exhibitions=offer a great opportunity to talk with a number of potential
suppliers in the same place at the same time. Before you go to an exhibition, it's
a good idea to check that the exhibitors are relevant and suitable for your
business.
6.Trade press=trade magazines feature advertisements from potential suppliers.
GETTING THE RIGHT SUPPLIER FOR YOUR BUSINESS: 1.Know your needs=make sure you know
what you need.
2.Spend time on research=choosing the right suppliers is essential for your
business. Don't try to save time by buying from the first supplier you find that
may be suitable.
3.Ask around=people or other businesses with first-hand experience of suppliers
can give you useful advice.
4.Credit check potential suppliers=it's always worth making sure your supplier has
sufficiently strong cash flow to deliver what you want, when you need it. A credit
check will also help reassure you that they won't go out of business when you need
them most. Discover

5.Price isn't everything=other factors are equally important when choosing a

supplier - reliability and speed, for example. If you buy cheaply but persistently
let down your customers as a result, they'll start to look elsewhere.
6.Don't buy from too many suppliers=selecting the right suppliers is essential for
building a successful business. By employing some supplier's selection criteria, it
is possible to identify enterprises who are reliable and meet your particular
needs.
HERE ARE SOME FACTORS TO CONSIDER IN SELECTING POTENTIAL SUPPLIERS OF RAW MATERIALS
AND OTHER INPUTS:
1.Price=if you focused on managing your finances, a main consideration for
selecting suppliers is affordability yet possesses a good quality product.
2.Reliability=developing a closer relationship with a reliable supplier means
getting quality, timeliness, innovation, and competitiveness, which are all assets
in continuously receive throughout the supply chain relationship.
3.Stability=look for qualified suppliers who have been in business for a long time.
Stability is important, when entering a long-term contract with a supplier.Conduct
performance reviews on their credit history to see if they are financially stable.
It requires also in finding out what businesses use a specific supplier's services
and asking them for a reference.
4.Location=consider about location when selecting suppliers. Dealing with distant
suppliers might provide you a longer delivery time and extra load costs. If you
need it fast, a local supplier might be a better option. Be sure to check on the
freight policies of distant suppliers.For instance, bulk orders might get a free
shipping, or you might combine different orders to reduce costs.
5.Developing Partnerships =basically, thesupplier's relationship is at its best
when a strategic partnership is made, allowing full facts of the source of
materials, and guaranteeing high quality.
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.
This type of partnership promotes stronger commitments and encourages a greater
interest in success for the material and finished goods. Following these factors
will enable you to select suppliers who can support to improve your productivity,
ensure you to produce quality goods/services within budget.
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 When the process done
effectively, the costs of materials and efficient transport may reduce its costs
for the consumer while increasing profits for the manufacturer.
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. There are five steps in the value chain
process,which allows a company to have a competitive strength over other
competitors.
The five steps are:
1.Inbound Logistics:Deals with receiving, storing and inventory control.
2.Operations:
Value-creating activities that convert inputs into finished products such as
assembly and manufacturing.
3.Outbound Logistics:
Activities concerned with the collection, storage, and distribution of finished
product or service to customers.
4.Marketing and Sales:
Involve activities that associated among the general consumers or buyers to
purchase a product.
5.Service:
Activities that maintain and enhance the value of the product, such as customer
care and warranty package. Supply chain is as significant as a value chain to the
business world. The two models are difficult to separate in that most of their
functions connect. Both supply and value chains need transportation and storage and
end with the consumer receiving their goods/service.Both have similar goal that is
to satisfy the customers with your products while operating efficiently and
effectively, in order to give the business a better bottom line but take somewhat
different tracks to get there.