Tips for supply-ready SME businesses

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TursuisRuiters.jpgFor entrepreneurs who are running a small business that is ready to become a supplier to big corporates, in this month's SmartProcurement, Tursuis Ruiters, Financial Mentor at The Hope Factory, offers useful tips that procurement professionals might want to share with ED suppliers to prepare them to be "Supply Ready".


Corporates are looking for businesses that are available when needed; that have the ability to perform to their needs and requirements; and that are easily approachable. These three qualities must be showcased in the documents that SME's need to submit to register as a supplier on a corporate’s supplier database.


These documents include:


A certified copy of the business registration documents.

SME's need to ensure that the annual duty is up to date with the CIPC (Companies and Intellectual Property Commission); if it’s not the CIPC will deregister the company, which will in turn lose its legal status. It’s important for ED Suppliers  to keep in touch with their accountants to ensure their company is in good standing. Often large business opportunities are missed due to these basic items being outstanding.
 

An original, valid tax clearance certificate. It needs to be an original document as a copy of a tax clearance is not a valid document. Companies can apply online or visit a South African Revenue Service (SARS) office to apply for a tax clearance certificate. SARS will only issue a tax clearance certificate if all the returns are submitted and all outstanding amounts have been settled.
 

In order for the prospective client to establish credibility it is advisable to submit a business organogram showing holding company, subsidiary companies and operating structure, etc. In addition to this a business profile with trade references and accreditation certificates will go a long way to get a foot in the door.
 

Submitting a valid B-BBEE certificate will improve the company’s chances for tender and preferential procurement.
 

"Ensuring  documentation is compliant is vital in giving SME's the access they need to enter corporate supply chains," says Ruiters.
 

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