FOCUS ON PREFERENTIAL PROCUREMENT

Procurement counts for 20% of a company’s scorecard, the only other element carrying an equal rating to ownership! Companies cannot afford to ignore the BBBEE status of their suppliers, as they get points related to the Rand value of their spend with each one. How those points are calculated is based on the verified status of each supplier, with a Level 2 supplier scoring the procuring company 125% of every Rand Spent, and a Level 8 supplier only achieving 10%! So when you’re spending a million Rand, you’re going to look at how the supplier you choose impacts on your own BBBEE rating.

Enterpriseroom has expertise in assisting companies to obtain the highest possible number of points on the Preferential Procurement scorecard through intense interaction with procurement personnel and suppliers to ensure that all relevant data is collected and incorporated into procurement calculations.

 

 
   
 
Status Points requirement BEE procurement recognition level
Level One Contributor ≥ 100 points on the BEE Scorecard 135%
Level Two Contributor ≥ 85 but <100 on the BEE Scorecard 125%
Level Three Contributor ≥ 75 but <85 on the BEE Scorecard 110%
Level Four Contributor ≥ 65 but <75 on the BEE Scorecard 100%
Level Five Contributor ≥ 55 but <65 on the BEE Scorecard 80%
Level Six Contributor ≥ 45 but <55 on the BEE Scorecard 60%
Level Seven Contributor ≥ 40 but <45 on the BEE Scorecard 50%
Level Eight Contributor ≥ 30 but <40 on the BEE Scorecard 10%
Non-Compliant Contributor <30 on the BEE Scorecard 0%
Exempted Micro-Enterprises (EMEs) & start-ups count as level 4 (Level 3 if black owned)