State-business accord sets buy-local target of 75%
Business, government and labour pledged on Monday to increase their expenditure on goods and services from South African producers to 75%. The move is a bid to boost industrialisation and create employment in the country.
Posted by Editor at 6:40 AM | Comments (0)
Sustainable supplier and enterprise development
Many of the 6 000 000 small to medium enterprises (SMEs) in South Africa are struggling and a high percentage will fall by the wayside, Yvonne Themba, Director of Corporate Affairs at Shanduka Black Umbrellas, told delegates at SmartProcurement World.
Posted by Editor at 6:10 AM | Comments (0)
Using the new PPPFA Regulations for successful supplier adoption
The new Preferential Procurement Policy Framework Act (PPPFA) regulations are set to go into effect on 7 December 2011. This is great news that will positively impact the lives of many in South Africa as well as the country’s overall economic outlook, Catherine Hills, Partner: Global Accounts at Ariba, tells SmartProcurement.
Posted by Editor at 5:30 AM | Comments (0)
DTI, UNISA and WITS create Management Development Programme
The B-BBEE Management Development Programme (MDP), created by the dti and Unisa School of Business Leadership (including Wits), has recently been launched.
Posted by Editor at 9:10 AM | Comments (0)
PPPFA - Is Level 4 Good enough?
The difference between a level 3 and level 4 can have a massive impact on your company’s profitability. Wayne Oosthuizen, CEO of Engeli Enterprise Development highlights some interesting facts about the evaluation of tenders in terms of the PPPFA, in this month’s SmartProcurement.
Posted by Editor at 6:50 AM | Comments (0)
Sustainable Procurement matters
Sustainable Procurement recently moved into the blogosphere following publication of the 5th edition of an HEC-Paris/EcoVadis report, ‘Sustainable Procurement: Back to Management!’ For a view on the survey’s findings of European procurement realities within 2011, SmartProcurement spoke to Abrie de Swardt, IMPERIAL Logistics Marketing Director.
Posted by Editor at 6:10 AM | Comments (0)
Do the Preferential Procurement regulations apply to you?
If you want to do business with any government department, then yes they do, say Shaun Scott, Director of Worldwide integrated Logistics.
Posted by Editor at 5:30 AM | Comments (0)
Black Economic Empowerment: How far have we come?
Broad-Based Black Economic Empowerment (B-BBEE) was a form of Economic Empowerment initiated by our government in response to criticism against Narrow Based Empowerment instituted in the country during 2003/2004. While Narrow Based Black Economic Empowerment led to the enrichment of a few black (Black African, Coloured or Indian) individuals, the target of Broad-Based Empowerment was to distribute wealth across as broad a spectrum of South Africa's people as possible. In contrast, Narrow Based empowerment measured only equity ownership and management representation.
Posted by Editor at 5:20 AM | Comments (0)
Expenditure analysis system now provides BEE scorecard data
The July 2011 update of its expenditure analysis module now provides data on a supplier’s BEE scorecard, in addition to a consolidated BEE expenditure analysis report, says Procurement information solutions provider Ezee-Dex.“This feature enables companies to analyse B-BBEE expenditure on the spot. Any B-BBEE report you need on a vendor should take no longer than a few minutes,” MD Cathrin Heath tells SmartProcurement.
Posted by Editor at 5:00 AM | Comments (0)
PPPFA amended - A big day for B-BBEE
Effective 7 December 2011, government departments will be forced to consider compliance to the Codes of Good Practice when evaluating tenders for government business. The publication of the amended Preferential Procurement Regulations, issued in terms of the Preferential Procurement Policy Framework Act (PPPFA), has been eagerly anticipated following the circulation of draft amendments for public comment in August 2009. The new regulations are the last component in executing B-BBEE as contemplated in the Broad Based Black Economic Empowerment Act and require that all tenders be accompanied by a valid B-BBEE certificate, issued by an accredited verification organisation.Wade van Rooyen of iquad verification services discusses the changes in this month’s SmartProcurement.
Posted by Editor at 9:50 AM | Comments (0)
Preferential Procurement a boost to Proudly South Africa campaign
The finalisation of the long-awaited Preferential Procurement Regulations (presently awaiting cabinet approval to finalise the new Procurement Framework), will be a significant boost for Proudly South Africa (PSA), according to the “buy local” campaign’s acting CEO Herbert Mkhize.
Posted by Editor at 1:50 PM | Comments (0)
New companies act - changes to business environment
May 1, 2011 saw the implementation of the new Companies Act of 2008.The promulgation of this Act brings about several fundamental and important changes to South Africa’s laws regarding legal entities.
Posted by Editor at 1:40 PM | Comments (0)
BEE codes do not speak enterprise development
The best way for an organisation to become involved in enterprise development is through its own supply chain, said Claudia Manning, MD of development consultancy ECIAfrica and a member of President Jacob Zuma’s BEE advisory council.
Posted by Editor at 1:30 PM | Comments (0)
Cabinet to align treasury procurement regulations with BEE Act.
Cabinet announced in March that it will approve the alignment of the Preferential Procurement Policy Framework Act (PPPFA) and the Broad-Based Black Economic empowerment Act (BEE Act).Public entities follow the regulations of PPPFA to procure goods and services.
Posted by Editor at 12:00 AM | Comments (0)
Government's Green Paper - data management implications
The Department of Environmental Affairs has released the much anticipated and long delayed National Climate Change Response Green Paper (the Green Paper). Global Carbon Exchange’s Kevin James provides SmartProcurement with the points pertinent to you and your business.
Posted by Editor at 1:30 PM | Comments (0)
Preferential Procurement Struggle: Promoting and assisting small business
"We struggle to get large corporates to assist the many small businesses we mentor on the long and hard road to success," Bella Cebekhula of Shanduka Black Umbrellas told SmartProcurement.“Procurement in South Africa is built around big companies and has very little to do with small business. We feel that government policy is not clearly directed for the benefit of the thousands of small to small to medium enterprises (SMEs) scattered across our national economy."
Posted by Editor at 7:00 AM | Comments (0)
Generate BBBEE expenditure reports in minutes
Easily calculate your annual BBBEE expenditure from your ERP or accounting system.Procurement information solutions provider Ezee-Dex has released an expenditure analysis feature that makes it possible for organisations to generate broad-based black economic empowerment (BBBEE) expenditure reports in only a few minutes, MD Cathrin Heath tells SmartProcurement.
Posted by Editor at 6:20 AM | Comments (0)
World Cup purchasing irregularities exposed - Download Report
The transparency of purchasing procedures for the FIFA World Cup has once again come under scrutiny. South Africa’s Institute for Sec urity Studies has published its concerns over stadia building and bidding practices in 'Pla yer and Referee: Conflicting Interests and the 2010 FIFA World Cup'.
Posted by Editor at 12:10 AM | Comments (0)
Comment: Draft preferential procurement regulations' effect on currently exempt SOEs
Ashney Chetty, Manager of Policy and Governance at Transnet, and her group offer the following commentary on the draft Preferential Procurement Regulations (“the Regulations”) to SmartProcurement readers. It will focus on the impact and effects of the Regulations upon SOEs that are currently exempted from the PPPFA.
Posted by Editor at 5:40 AM | Comments (0)
Green procurement in SA - The local imperative
While the agreements and targets reached at Copenhagen are still a shadow of the outcomes the world was expecting (and required?) from the environmental talks, Green Procurement will still need to be the way forward for companies to meet their CSR and to unlock sustainable value in their supply chains.
Posted by Editor at 12:00 AM | Comments (0)
Progress on Draft PPPFA vs BEE Codes - Parliament in January
National Treasury has received 148 Comments so far on the proposed draft amendment to the PPPFA that was published in August 2009 for comment from the public and stakeholders. A first presentation on these comments will be made toParliament in early January 2010 , a senior source in National Treasury told Smart Procurement.
Posted by Editor at 12:00 AM | Comments (0)
The impact of the financial crisis on SA, and why BEE is now more important than ever
When the current global financial crisis peaked in 2008, the South African economy was held together by its strong foundation which benefitted from several past regulations that minimised investment flows out of the economy.
Posted by Editor at 7:00 AM | Comments (0)
SMME Development as a driver of BEE Procurement opportunities and the economy as a whole
"Governments, policy makers, even the World Bank, all agree that small businesses are the growth engine in any economy. Looking at other countries as an example, 95% of organisations in Australia are from the Small Micro Medium Enterprises sector (SMME), whilst Germany’s economic growth was also led by SMMEs. The same applies to South Africa where we have an estimated 2.8 million SMMEs in the country at present, who drive economic growth and development”, Alexander Soare, Managing Director of BEESA Boxsmart, told SmartProcurement.
Posted by Editor at 11:00 AM | Comments (0)
2008 Annual BEE Conference: BEE Procurement decreases by 20%
BEESA Consulting and EES-Siyakha hosted their second annual Black Economic Empowerment (BEE) Conference on the 11th, 12th and 13th of November 2008 at the Birchwood Hotel and OR Tambo Conference Centre in Johannesburg. More than 80 delegates from both the private and public sectors attended the event in order to get to grips with the rapidly shifting South African empowerment landscape. And the message was clear: Transformation is a process, not an event.
Posted by Editor at 8:10 AM | Comments (0)
Enterprise Development unlocks Preferential Procurement value
E
nterprise Development, along with Socio-Economic Development and Skills Development, should be a fundamental cornerstone of any well-structured South African BEE Procurement strategy. Andrew Bizzell, co-founder of the Institute for Enterprise Development and a BEESA consultant, told Smart Procurement how procurement organisations can make Enterprise Development (as a BEE strategy) work for them...Posted by StaffWriter at 11:31 AM | Comments (0)
BBBEE Compliance vs Government Procurement Practices - a Contradiction in terms?
"No government department has ever asked for a Broad Based BEE certificate, and it may be some time before they do" Wade van Rooyen of Iquad Verification Services tells SmartProcurement. . The answer to the question of why government has not asked for certificates is based on conflicting legislation which may have a serious impact on your business.
Posted by StaffWriter at 10:25 AM | Comments (0)
7 Tips for achieving BBBEE compliance quickly
Obtaining BBBEE procurement recognition for your organisation is usually not a simple exercise. The task can be daunting even for the most pro-active procurement officers.Posted by StaffWriter at 10:15 AM | Comments (0)
Seamless reporting on your monthly/ quarterly/ annual BBBEE spend now available
It's Friday noon hour and you're about to leave for a supplier meeting when the CPO buzzes and says that the FD just flew in from HQ and urgently ( for their impromptu Board Meeting at 14h00) requires your Commodity Report on your total BEE Spend:
Posted by StaffWriter at 9:27 AM | Comments (0)
Detailed 60 000 BEE SUPPLIER and verification information available electronically
In the recent past Supplier Directory’s matched the procurement departments enquiry with the required goods or services and ranked the supplier(s) according to region, reputation and such like criteria. The BBBEE Codes of Good Practice, as issued by the Department of Trade and Industry and, gazetted in February this year, changed all that. Detailed Supplier information is now an essential component of the procurement departments ability to fulfil its internal and, external transformation objectives and strategies.
Posted by StaffWriter at 8:16 AM | Comments (0)
Updated: Generous BEE compliancy allowances for Small Business
With the release of the final BEE Codes of Good practice=, the government has listened to small and medium business concerns about their difficulty in becoming compliantJohan Giliomee of NERA tells Smart Procurement. "Their biggest complaint has been that they do not always have the resources and money to become compliant and that a change in ownership and management will seriously affect their business.
Posted by bernievn at 10:42 AM | Comments (0)
BEE procurement compliance "Bureau" service launched
Does your company buy from non-BEE suppliers when a BEE supplier could have been used? Cape Town based CCI-Growthcon have developed an innovative approach to ensure maximum utilisation of BEE suppliers based on their description based spend analysis software - available monthly on a bureau basis.
Posted by bernievn at 9:18 AM | Comments (0)
Current procurement systems and practices will fail BEE verification requirements.
The South African economy in all its diversity, presents BEE Verification Agencies with a reality that differs substantially from the corporate standard envisioned by the authors of the BBBEE Codes of Good Practice. "This is not to say that Verification is critically affected, or that adherence to the codes becomes impossible, but rather that both Verification Agencies and clients should be aware of the challenges faced, responding to these as quickly and as accurately as possible," says Robert Thorburn of Exceed Verification.
Posted by bernievn at 1:28 PM | Comments (0)
New BEE "pop-up " tool launched
Local e-Procurement platform provider MWEB CommerceZone has launched an innovatove solution that makes the arduous task of implementing and driving preferential procurement easier and faster.
Posted by bernievn at 12:28 PM | Comments (0)
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 bernievn at 7:30 AM | Comments (3)
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 bernievn at 2:22 PM | Comments (0)
Preferential Procurement: Destroying or enhancing procurement value….?
Whether it’s Green (Environmental) Procurement, developing historically disadvantaged individuals (HDI / BEE) or other forms of socially responsible procurement… powerful market forces guided by special interests play an increasing, and major role in defining procurement success. Will these issues destroy value created by strategic sourcing initiatives or will it raise the profile of the procurement organisation to the next level?
Posted by bernievn at 4:19 PM | Comments (2)
Highlights: BEE Codes of Good Practice (Part 1)
Supplier complaints that "different South African customer rate our BEE (Black Economic Empowerment) efforts differently" and "each time we think that we've met the criteria, everything changes", might be coming to and end soon with the recent introduction of the government's Draft BEE Codes of Good Practice..
I've tried to put the salient points of the new code as they apply to South African Procurement Professionals in this article. This includes an on-line calculator (see below) which you can use to calculate your Supplier's BBBEE rating. (or send the article to them so they can do it themselves!) Links to the various detail documents as supplied by the Department of Trade and Industry (DTI) are also included.
Posted by bernievn at 3:28 PM | Comments (10)
BEE Supplier Development: How to pass the buck but still get the credit
By Bernie van Niekerk
No doubt, BEE is an ultra-hot topic. In this election year, it will dominate many political speeches. It will also dominate many deals and already is. (see BEE News section). For procurement professionals in Government and the Private sector this means meeting BEE targets. And the more broad-based the empowerment targets, the hotter it will get for the procurement fraternity.
Posted by bernievn at 8:30 PM | Comments (5)
