The Selection of Potential

Suppliers, Value/ Supply Chain

and Recruitment of Qualified
People in Business Enterprise
Raw Materials
• Refers to the basic material
from which a product is
made.
• Are materials or substances
used in the primary
production or manufacturing
of goods.
• They are the commodities that
are bought and sold on
SUPPLIER
• Refers to individual or companies that provide the required materials,
parts or service to the business.
• They play a crucial role in the production of goods and services. They can
adversely affect the production process by delaying the delivery of the
required raw materials and supplies or services.
CRITERIA IN THE PROCESS OF SELECTING THE SUPPLIER
• Quality of the goods or services
• Terms of payment
• Stability
• Ability to respond to urgent needs
• Proximity of the location.
 Potential supplier selection process
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 a service. How you weigh up the
importance of these different factors will be based on
your business priorities and strategy. A strategic
approach to choosing suppliers can also help you to
understand how your potential customers weigh up
their purchasing decisions.
 What you should look for in a supplier ?
• RELIABILITY- Remember if they will let you down, you
may let your customer down.
• QUALITY - The quality of your supplies needs to be
consistent- your customers associate poor quality with
you, not your suppliers.
• STRONG SERVICE AND CLEAR COMMUNICATION
You need your suppliers to deliver on time, or to be honest
and give you plenty of warning if they can't. The best
suppliers will want to talk with you regularly to find out what
needs you have and how they can serve you better
• VALUE FOR MONEY - The lowest price is not always the best
value for money. If you want reliability and quality from your
suppliers, you'll have to decide how much you're willing to pay for
your supplies and the balance you want to strike between cost,
reliability, quality and service.
• FINANCIAL SECURITY- 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 help reassure you that they
won't go out of business when you need them most.
• A PARTNERSHIP APPROACH - A strong relationship will
benefit both sides. You want your suppliers to acknowledge how
important your business is to them, so they make every effort to
provide the best service possible. More likely, to create this
responses by showing your supplier how important they are to your
 IDENTIFYING POTENTIAL SUPPLIERS
• RECOMMENDATIONS ask friends and business
acquaintances. You're most likely to get an honest
assessment of a business strengths and weaknesses from
someone who has used its services.
• DIRECTORIES If you're looking for a supplier in your
local area, it's worth trying directories such as Yellow
Pages and Thompson.
• 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.
 IDENTIFYING POTENTIAL SUPPLIERS
• BUSINESS ADVISORS Local business- supports
organizations, such as chambers of Commerce, can often point
you in the direction of potential suppliers. You can also contact
Strategic Information Centre.
• EXHIBITIONS Exhibits offers a great opportunity to talk with
a number d 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.
• TRADE PRESS Trade magazines feature advertisements from
potential suppliers. You can contact Strategic Information
Centre for a list of specialist trade magazines.
 10 CHARACTERISTICS OF A GOOD
• SUPPLIER
1. Accountability for quality issues
• 2. Production capabilities
• 3. Expertise in your product type and target market
• 4. Culture fit: the best suppliers are willing to work with you
• 5. Ease of communication
• 6. Cooperation with third-party QC (quality control)
• 7. Ethical compliance
• 8. Regulatory compliance
• 9. Clear and comprehensive recordkeeping
• 10. Proactive attitude towards continuous improvement
 VALUE / SUPPLY CHAIN IN RELATION TO BUSINESS ENTREPRISE
VALUE CHAIN- is a process in which a company adds value to its raw materials to
produce products eventually sold to customers. The value chain gives companies a
competitive advantage in the industry.

Value Chain place a great amount of focus on things such as product testing, innovation,
research and development and marketing.

The Value Chain adds a value to the customers because the quality of materials from
suppliers influences value as well as the efficiency of logistics and manufacturing process.
The higher the quality, the higher the cost and more efficient the process, the higher the
quality of the product or service.
 The steps or activities that allows a company to
have an advantage over competitors are:
• 1. Inbound Logistics: Receiving, Warehousing and inventory
control.
• 2. Operations: Value -creating activities that transform inputs
into products, such as assembly and manufacturing
• 3. Outbound Logistics: activities required to get a finished
product to a customer. These include warehousing, Inventory
Management, Order fulfilment, and Shipping
• 4. Marketing and Sales: activities associated with getting a buyer
to purchase a product
• . 5. Service: Activities that maintain and enhance a product's
value, such as customer support and warranty service.
SUPPLY CHAIN -comprises the flow of all information,
products, materials, and funds between different stages of creating
and selling a product to the end-user. The concept of the supply
chain comes from an operational management perspective. Every
step in the process- including creating a good or service,
manufacturing it, transporting it to a place of sale, and selling it-is
part of a company's supply chain. It represents all the steps
required to get the product to the customers.
Supply chain functions include the following:
• Product development
• Marketing
• Operations
•Distribution
• Finance
• Customer Service
• RECRUITMENT - is the process of designating qualified applicants
who apply for a position in a firm. It is a process for searching
potential applicants for the current and anticipated vacant positions in
the organization. It is also a process of attracting qualified applicants to
occupy the vacant positions in the company. Proper allocations
involves placing the employees in the right departments and making
sure they are equipped with the right skills and experiences for the job.
Applicants are required to fill out the company's background check.
application form and submit to a selection process that requires tests,
interviews and a background check.
• RECRUITING - involves the process of finding suitable employee
and hiring them to join a company or a firm with various or specific
job vacancies.
The following are the major steps in recruitment:

1. Planning and approval - Specific questions are needed to be

answered in filling vacancies in the organization. One is,
"Should the existing vacancy needed to be filled?
2. Position announcement/ Job Posting - Choosing between an
external and internal recruitment is the next step once the
vacancies were identified.
3. Recruitment and Strategies - Different techniques are used in
recruiting applicants and there are two sources of recruiting them:
Internal Hiring - usually involves promotion. Recruitment from within
increases the general level of morale of employees who feel that they
would have avenues for promotion or transfer. Using internal source of
hiring saves recruitment, screening and selection expenses on the part of
the organization.
External Hiring - on the other hand promotes hiring of employees from
the outside source. This source is used when the available positions
whose job specifications cannot be met by existing personnel within the
organization.
 External Sources of Recruiting Applicants
a. Newspaper Advertisement used to be the most popular medium in
recruiting applicants. The downside of using newspapers for job
posting is that it is limited in terms of exposure because of the growing
popularity of he internet as the medium for job hunting
b. Internet - Company web pages and job web sites are the most
popular nowadays. Using the internet for job posting gives maximum
exposure for the applicants and the organization as well.
c. Manpower Agency - it is advantageous for a hiring organization to
contact a manpower agency since the human resource of the
organization can leave all the responsibilities to the agency.
d. Walk - Ins. - applicants who are "Walking-In" are ready to be
interviewed right away since they are already at the company's
doorsteps.
 External Sources of Recruiting Applicants
e. Referrals - there are applicants who are referred by people who
knows employees in the company that has vacancies. Some are
referred by company employee themselves.
f. Job Fairs - there are companies which participate in job fairs to
minimize costs. Through job fairs, they can conduct preliminary
interviews and there are many job applicants to choose from.
g. Campus Recruitment - Companies which participate in college
fairs most of the time need fresh graduates who are willing to be
paid minimum wage as starting salaries. The HR department can
choose the schools where it can source out graduating students of
particular course.
h. Project Basis - Companies highly technical in nature like
software and developer usually hire project-based employees.
 SELECTION
After screening and sorting out resume's of the applicants, selection
process follows. Those who will qualify for the preliminary screening
will be notified to fill out the application form of the company.

Steps in Selection Process:

1. Psychological Testing- applicants who pass the test are qualified
for the preliminary interview.
 3 types of Psychological test administered to applicants:
a. IQ (intelligence Quotient) or Mental Ability test- test of general
knowledge which consists of general questions, abstract reasoning
and numerical abilities.
b. Aptitude Test - is the measuring of specific abilities and a test of
the applicant's partiality to succeed in a particular field. It determines
the specific abilities that are required in certain fields of
specialization like Engineering, Encoding, Sales, etc.
c. Personality Test - is the measuring of patterns of behavior such as
cooperation, initiative, dependability and sociability. Comparing to
mental ability tests, this test is not time-pressured, do not have the
right or wrong answers
2. Screen / Interview and Background check
Types of Interview are the following
• a. Panel Job Interview - is when the applicant faces several
interviewers who take turns in asking questions.
• b. Behavioral or Experienced-Based Interview - is done to clarify
incidents in the past of the applicant, in his/her former job or life
experiences relevant to the job being applied for.
• c. Structured Interview - is when the interviewer relies on pre-
established set of questions and is usually based on job description and
specification.
• d. Unstructured Interview - is the type wherein the interviewer prepares
guide questions and allows the applicant to answer spontaneously.
3. Job Offer- This is the stage where the HR department offers the job to the
most favored candidate. If the applicant accepts the offer, the new hire will
be assigned the position title and would be offered the starting pay.
Thank You