Preferential Procurement

Preferential Procurement merges with Enterprise Development to form Enterprise and Supplier Development under the new Codes. This is a priority element and you have to earn 40% OF THE POINTS OR DROP A RATING LEVEL.

What do you need to earn 17 supplier and enterprise Development points?

  • „You have to purchase from Empowering suppliers or you earn no points.
  • „You need to make Supplier Development contributions equivalent to 2% of your NPAT.
  • „You need to make Enterprise development contributions of 1% of your NPAT to a qualifying enterprise.

What does this mean?

  • Every company must procure items or services from BEE Compliant companies, the higher their rating the better for you.
  • „You have to procure from 30% BW and 51% Black owned companies.
  • You will incur extra costs to earn these procurement points.
  • „Your company structure does not have to change to earn these extra points.
  • As a client you can insist on your suppliers becoming compliant or rather procure form suppliers who are.
  • Do you need to earn the maximum amount of points you can under Procurement?
  • Do you need a supplier Development Beneficiary?
  • 40 points makes you compliant= level 8

Your Challenges

  • White owned companies you procure from will only earn you 5 points out of a possible 25.
  • 40% of your purchases from 51% BO FOR 9 POINTS??
  • „12% of your purchases from 30% BWO for 4 POINTS??
  • „No longer import exclusions??
  • „Most companies will only earn +_ 6 points and drop 2 levels

Preferential Procurement 25 Points

Preferential Procurement                                                                                                                                                                  Points                              Tgt                     

BEE procurement Spend from all Empowering Suppliers based on the BEE recognition Levels

5

80%

BEE procurement Spend from all Empowering Suppliers EME’S based on the BEE recognition Levels

3

15%

BEE procurement Spend from all Empowering Suppliers QSE’s based on the BEE recognition Levels

4

15%

BEE procurement Spend from all Empowering Suppliers that are at least 51% Black Owned

9

40%

BEE procurement Spend from all Empowering Suppliers that are at least 30% Black owned

4

12%

 

What and How?„

Supplier Development (10 Points) and Enterprise Development (5 Points):  

  • Beneficiaries of Supplier Development (SD) and Enterprise Development (ED) can only be EME’s or QSE’s that are at least 51% black owned.
  • Cumulative contributions are still recognised.
  • Measured entities are encouraged to develop and implement a supplier development plan
  • Enterprise Development contributions in the form of shorter payment period limited to a maximum of 15% of the invoice amount and 1.5 of the 10 points
  • 2 Bonus points are available for migrating an ED to a SD beneficiary and for creating jobs through ED/SD initiatives.

Enterprise and supplier development

Supplier Development

Points

Compliance Target

Annual value of all supplier Development Contributions a percentage of target

10

2% of NPAT

Enterprise development

Annual Value of all Enterprise Development Contributions and sector specific programs as a percentage of the target

5

1% OF NPAT

Bonus points – One or more beneficiaries as a percentage of the target

1

 

Creating one or more jobs as a result of ED  or SD

1

 

Enhanced recognition

Criteria                                                                                                   Enhancement

3 year contract with supplier

X

Spend by 1.2

BO owned QSE or EME that is not an SD beneficiary but has a 3 year contract

X

Spend by 1.2

First time supplier

x

Spend by 1.2

The details

  • You need a level 1 or 2 , 51% black women owned procurement company
  • „Must be a QSE/ EME
  • Must have a 3 year agreement with them.
  • Must be or become a supplier to you.
  • „Must be deemed to be a good citizen.
  • „Must have a valid BEE Certificate.
  • Must be an empowering supplier.

A solution for you

  • „A 51% BLACK WOMEN OWNED PROCUREMENT COMPANY
  • „LEVEL 2 BEE CERTIFICATE
  • YOUR CHEAPEST BEE POINTS
  • „NO RISK TO YOUR COMPANY
  • „SOLVES PROCUREMENT, ED AND SD

 

 

„Finalise and sign agency agreement with  Original Procurement at 2% of invoice value.
„Sign a Supplier development Agreement with Original Procurement.
„You need to make Supplier Development contributions equivalent to 2% of your NPAT to Procurement Company.
„Sign an enterprise development agreement with Original Procurement.
„You need to make Enterprise development contributions of 1% of your NPAT to Original Procurement.
„Banking access given to load payments.
„Notify your suppliers that this is the new procedure of procurement.
„Once complete start placing your orders and earn points while empowering a black women owned beneficiary company.