Kgolo MedTech Supplies is a Johannesburg-based distributor of medical replacement parts to private hospitals. After repeated complaints from technicians about “limited supplier choice,” the company approved several new component suppliers recommended by internal specialists. Within two months, hospitals reported more returns and late deliveries, and Kgolo MedTech had to place urgent emergency orders at higher prices to keep service levels stable. Specialists are now pushing to add even more suppliers, arguing that “more options will fix the problem,” while the CEO wants a consistent way to prevent risky suppliers from being approved without blocking legitimate technical needs. Which option addresses the constraints described in the scenario?

Question

Answer

Introduce structured supplier qualification criteria and performance scorecards, and require evidence that new suppliers meet minimum standards before approval

Answer

Stop adding any suppliers for the rest of the year, and require all departments to use the existing supplier list regardless of performance

Answer

Give specialists full authority to approve suppliers, and require purchasing to focus only on placing orders and resolving delivery issues

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Approve additional suppliers quickly to reduce dependence on current suppliers, and review performance only after service levels improve

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Kgolo MedTech Supplies is a Johannesburg-based distributor of medical replacemen...

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