August 22, 2006
Measuring suppliers on ownership can result in no verified BEE points at all.
Increasingly companies, even those that have not had their BEE positions verified, are instituting systems to track their BEE procurement spend. The reasons for this being pretty obvious, procurement accounts for 20 points (out of 100) of a company’s BEE score. There is however a disconnect between the data procurement departments are preparing and what will be required by verification agencies.
Posted by Bernie at 02:43 PM | Comments (0)
May 25, 2006
New Broad Based Empowerment vs Cost Savings - walking a tightrope?
All too often BEE (Black Economic Empowerment) is dealt with in one of two extremes, that is to say all or nothing. On the ‘all’ side some procurement departments only consider suppliers who present a specific empowerment score, usually with substantial black ownership. This narrow based approach is clearly out of touch with B-BBEE and runs the risk of favouring suppliers who compete only on their empowerment credentials, while pricing and quality may suffer.
Posted by Bernie at 02:22 PM | Comments (0)