Total Measured Procurement Spend (TMPS) forms the basis of the calculation measuring an organisation's Preferential Procurement spend. The formula is (A – B = TMPS) broken down as (Not Limited to):
A ) Cost of sales- adjusted for opening and closing stock;
Operating expenses;
Other expenses; and
Capital Expenditure
B ) Salaries, wages, remunerations and emoluments;
Empowerment-related procurement;
Supplier-specific exclusions:
Taxes and levies;
Imports, providing they meet the criteria;
Organ of state / public entity that enjoys a statutory/regulated monopoly in the supply of such goods or services;
Pass through third-party procurement;
Accounting-related exclusions:
Depreciation and amortisation;
Fair value adjustments; and
Forex transactions.
Enterprise & Supplier Development Services are available to assist members with understanding the TMPS calculation.