Encourage your Suppliers – EconoBEE Newsletter August 2008

Encourage your Suppliers to give you a BEE Scorecard

In the past companies would send out bulk faxes/emails to all their suppliers asking for a BEE scorecard, in the hope that they would do well on Preferential Procurement. This method of collecting scorecards is great for reminding companies that can respond to respond, but not very good when it comes to companies who have not started their BEE endeavours.

It becomes extremely difficult for your suppliers to respond if they have done nothing. In addition it makes them feel very scared that they will lose business. It is important to reach the Preferential Procurement targets but it is also important to supply good quality products at competitive prices. Procurement is largely built around sound business relationships that take time to develop.

BEE Procurement must be implemented in a practical business environment. It is not possible to change suppliers in a month, similarly it takes time to develop a good BEE scorecard.

Where should you start if you want a BEE scorecard from your suppliers

  1. Explain why you need their scorecard – why it will benefit you

  2. How they should respond

    • Emphasize that this is a long term target – it can’t be achieved overnight

  3. Give practical solutions to them to get a BEE scorecard

    • Explain how the scorecard works

    • What to do to earn points

    • Explain what you have done on your scorecard to help them

  4. Offer assistance to them

    • Give them support

  5. Encourage them to give you a scorecard

  6. Encourage them to improve their scorecard

  7. Do not add additional pressure by making unreasonable demands

Preferential Procurement is a very important element. It is the element that drives BEE. A good procurement policy, along with plenty assistance will result in an improved procurement score.

We received some interesting statistics from one of SA’s largest corporations. They have +- 8000 suppliers. They received responses back from as little as 700 suppliers. This means that less than 10% of their suppliers responded. I suspect that the rest either had done nothing or did not care. The corporate has now started encouraging their suppliers by helping them. This is an extremely positive sign for BEE compliance.

We have had great success working together with companies – explaining how they can become compliant, what the requirements are and what their customers expect from them. Whenever we explain the true impact of BEE to a company, in particular to small companies, they stop avoiding BEE but rather embrace it and implement it properly.

BEE Procurement and Enterprise Development Conference

Less than a month to go – our BEE Procurement and Enterprise Development conference is filling up rapidly. We are very excited and know that the event will be very beneficial to all those who attend.

Anyone involved with Procurement or Enterprise Development or producing their company’s BEE Scorecard should attend this event. Avoid missing out on a superb opportunity of spending a day receiving valuable information.

Book now and see your points grow…

Accredited Verification Agencies

The verification guidelines have been released but SANAS and the powers that BEE have delayed the process once again. It looks like the final accreditation of BEE verification agencies will only happen next year.

Even though no verification agencies have been accredited it should not stop you from starting your BEE journey.

Key points to remember:

  • Prepare properly for a verification

    • Capture Evidence

    • Do “BEE Accounting” (use EconoLog)

  • Know what your score is before calling in an agency

  • Be prepared to appeal their decisions/calculations

More info about producing a BEE Scorecard…

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