Intra-group procurement spend is a normal part of spending, especially for groups of vertically connected companies, which in many cases is a sizeable amount. Internal procurement between holding companies and their subsidiaries must be included in an organisation’s Total Measured Procurement Spend as per Statement 400 of the Amended General B-BBEE Codes of Good Practice.
Paragraph 5.1.2 states: Intra-group procurement: all goods and services procured from subsidiaries or holding companies of a Measured Entity (BEE Credentials of the entity supplying goods and/or services must be confirmed in the way of a BEE Certificate).
Requirements for Consolidated B-BBEE Verifications amongst a group of Entities will have an impact on the above.
Enterprise & Supplier Development Services are available to Members to assist in understanding the Intra-Group Procurement spend.