B-BBEE Certification - Part 9 - Supplier Development | Create Infinity

Expanding your business through Supplier Development

As per procurement, the BEE level of your supplier impacts your BEE certificate, particularly your procurement points. Supplier development works with a supplier to your business, but not in a way that increase your purchases from that supplier, rather to ensure that the supplier is able to grow, through increased productivity, improved processes, or a cashflow injection.

Supplier development can be in the form of:

A grant
An interest free loan
Interest bearing loans
Services rendered
Some others

For a supplier to qualify as beneficiary for BBBEE purposes, the following criteria has to be met:

Supplier must be at least 51% black owned
You must procure from this supplier
You should spend 2% of net profit after tax with the supplier (over and above your actual purchases)
Actual payment should be made in the correct financial year

In utopia you should work with a supplier that migrated from you enterprise development program (read here), who became a supplier to your business later on.

Further benefits to this include:

Marketing angles for your business
Community and local supplier buy-in
Loyalty from suppliers

Watch the presentation regarding SD here:

B-BBEE Certification - Part 9

Watch the video on B-BBEE Certification. In this video, we will explore Supplier Development towards your B-BBEE certification.

To continue with the training, please continue below.

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