Aug 13 ,2019
Preferential Procurement makes up to 23% of your overall BEE Scorecard and forms part of the broader Enterprise Supplier Development (ESD) element.
Supporting compliant businesses and keeping track of your supplier database is key – after all, ESD makes up a staggering 40% of the BEE scorecard!
Supporting Compliant Businesses Yields Great Returns
By strategically analysing your partnerships and managing your supplier database, you position your business as a good corporate citizen who supports like-minded businesses whilst enjoying recognition under the Preferential Procurement element.
When dealing with large enterprises, the Procurement allocation is lower than that of the Generic Codes, and is as follows:
• All suppliers – 4 points
• QSE suppliers – 1 point
• EME suppliers – 2 points
• 51% 'Black’-owned suppliers – 6 points
• 30% 'Black’ Women-owned suppliers – 2 points
Points to note:
As the industry go-to, BEE-Connex takes pride in cutting out the jargon and bringing you Hassle-free BEE. Here are a few interesting points to note under Preferential Procurement:
• Procurement is calculated on purchases - not payments.
• Verification agencies require a detailed ledger, supplier age analysis, trial balance and a detailed general ledger to ensure that the procurement spend provided corresponds with the Annual Financial Statements.
• If a company fails to reach the sub-minimum targets set out above, they are automatically be discounted by 1 level.
• The majority spend should be allocated to EMEs or QSEs with at least 51% black ownership and 30% black women ownership.
Sophisticated Software to Manage your Suppliers?
If you are struggling in this regard, then why not try an outsourced solution?
On the BEE-Connex app, and in addition to our broad range of general BEE service providers, you now have access to a leading supplier who can manage your procurement easily and efficiently thanks to state-of-the-art software.
Pin-point, track, plan and maximise the suppliers that your company makes use of. Work alongside a dedicated team of experts to strategically enhance your spend and bolster your recognition.
• Tracking and managing procurement data.
• Strategic analysis of existing supplier agreements to increase enhancement recognition.
• Breaking down and reporting back on each aspect of spend.
• Scorecard calculation customised to each sector.
Get connected with the perfect supplier and consultant to match your business needs.