A South African automotive organisation relies on local suppliers for critical components such as tyres and electrical parts. The organisation has noticed some performance gaps in terms of quality and delivery times. Which approach best reflects a supplier development strategy to address these issues?

Question

Answer

Introducing lean manufacturing principles in the supplier's production plant, including streamlining their processes to reduce waste and improve the flow of automotive parts.

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Switching to a new supplier that already meets the required quality and delivery standards, without working with the current supplier to help them improve their performance.

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Revising the supplier’s contract to include performance-based incentives for meeting delivery schedules and quality metrics, while the organisation maintains control over inspection and testing of parts.

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Collaborating with the supplier to improve their production processes, such as refining assembly line operations and enhancing supplier quality control systems, to help meet automotive industry standards for quality and delivery.

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A South African automotive organisation relies on local suppliers for critical c...

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