Because of the importance of creating a market for the emerging enterprises we support, we advise our corporate clients on sourcing and working with new suppliers. We understand what it takes for these new enterprises to be market and investment ready, and the quality and consistency of service and product demanded by our corporate clients – and know how to put it all in place to create secure and reliable additions to the supply chain.
Our understanding of the close links between Enterprise Development and Preferential Procurement in the B-BBEE Codes of Good Practice, and the enhanced recognition that comes from buying from an ED Beneficiary assists our corporate clients to maximise their scorecard points, especially in the Black owned and Black women owned categories set aside in the Preferential Procurement element.
Preferential Procurement and B-BEEE
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 B-BBEE 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 R1m, you’re going to look at how the supplier you choose impacts on your own B-BBEE 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.
B-BBEE Levels and Recognition
| 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) and start-ups count as level 4 (Level 3 if black owned) | ||
