RAW MATERIALS

• These are the unprocessed and basic material that is used to produce goods, finished products,
energy, or intermediate materials which are feedstock for future finished products. Choosing the
right supplier will depend on a wide range of factors such as:
• 1. Value for money or the price
• 2. Quality or how it works
• 3. Reliability or dependability
• 4. Service or benefits
GUIDELINESS TO IDENTIFY POTENTIAL SUPPLIER

• 1. Think strategically in selecting suppliers

• 2. Set criteria in choosing a supplier
• 3. Identifying potential suppliers
• 4. Drawing shortlist of suppliers
• 5. Choosing a supplier
• 6. Getting the right supplier fitted to the business
 SET CRITERIA IN CHOOSING A SUPPLIER

•
• 1. Reliability – state of being reliable, worthy of confidence and dependable
• 2. Quality – a degree of excellence, superior in kind and high distinguishing attribute
• 3. Value for money – the lowest price does not guarantee the best value for money
• 4. Communication – the best suppliers that regularly communicate will find what the customer’s
need
• 5. Financial security – the supplier must be assured that the company has sufficiently strong cash
flow to deliver what the company wants and needs.
• 6. A partnership approach – a strong relationship will benefit both producer and supplier.
 IDENTIFYING POTENTIAL SUPPLIERS

• 1. Recommendations from friends

• 2. Directories of potential supplier, website or yellow page
• 3. Trade associations
• 4. Business advisors
• 5. Local businesses
• 6. Exhibitions of product
• 7. Trade press and trade magazines
 GETTING THE RIGHT SUPPLIER FITTED TO THE
BUSINESS

• 1. Know the company needs

• 2. Spend time on research
• 3. Get advice from existing customers
• 4. Price