PROCUREMENT

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

 

WHAT DO YOU NEED TO EARN 17 SUPPLIER AND ENTERPRISE DEVELOPMENT POINTS?

• You must 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 number of points you can under Procurement?

• Do you need a supplier Development Beneficiary?

• 40 points makes you compliant= level 8

 

YOUR CHALLENGES

• Non- compliant 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