CapeTech Exports, a Cape Town-based electronics manufacturer supplying major overseas retailers, plans to enter markets where supplier conduct is monitored by regulators, certification bodies, and civil society groups, and must ensure supplier compliance before any supplier is onboarded. Previous industry cases have shown that weaknesses in supplier oversight can lead to reputational damage, product withdrawals, and restricted market access. While preparing for expansion, CapeTech’s executive team recognises that sourcing decisions must reduce exposure to external scrutiny without undermining commercial competitiveness. Select the intervention that will enable Cape Tech’s executive team to balance these requirements the most effectively.

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Increasing the frequency of supplier performance reviews to include quality, delivery, and regulatory adherence indicators.

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Rely mainly on contract clauses and address compliance issues through remediation once identified.

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Structuring multi-supplier sourcing models to reduce dependency exposure across key product categories.

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Establishing a formal supplier qualification framework that evaluates operational controls, audit readiness, and documented compliance practices prior to contract approval.

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CapeTech Exports, a Cape Town-based electronics manufacturer supplying major ove...

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