B-BBEE Certification – Part 7 – Procurement | Create Infinity

The B-BBEE art of procurement

Procurement is only an art if you realise that you need to pull a rabbit out of a hat close the financial year-end. For the remainder, it is a science. An exact, predictable science.

Procurement relates to suppliers, and where the supplier is on his B-BBEE journey directly affects your B-BBEE certification. The level of his certificate causes your company to gain, or lose, marginal points on the procurement element.

The categories of B-BBEE spend that gets measure in BEE terms include:

Spend from all Empowering Suppliers
Spend from all Empowering Suppliers that are Qualifying Small Enterprises
Spend from all Exempted Micro-Enterprises
Spend from Empowering Suppliers that are at least 51% black owned
Spend from Empowering Suppliers that are at least 30% black women owned

For each one of these sub-categories you have to incur spending to various values. This means that you will lose points if you do not buy from 30% black women owned businesses, for example, or if you do not have a supplier that is a QSE.

To complicate matters a little more, the BEE level of the supplier increases or decreases your points earned:

Scorecard

B-BBEE Certification - Part 7

Watch the video on B-BBEE Certification. In this video, we will explore the art of procurement towards your B-BBEE certification.

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