It is fair to surmise that the points earned on Supplier Development, especially since Enterprise & Supplier Development is a Priority Element, will impact an organisation’s overall scorecard. Statement 400 of the Amended General B-BBEE Codes of Good Practice allocates 10 Weighting Points with a compliance target of 2% Net Profit After Tax, based on the following criteria:
2.2 Supplier Development
2.2.1 Annual value of all Supplier Development Contributions made by the Measured Entity as a target percentage.
There are another 2 Bonus Points available for job creation and elevation from an Enterprise Development Beneficiary to a Supplier Development one.
It is therefore vital that the Supplier Development Strategy of an organisation reflects the importance of this element. A Beneficiary must be identified as per the criteria in the correct timeline. The contract should highlight all interventions and contributions with evidence to support those contractual obligations were met.
Enterprise & Supplier Development Services are available to guide Members on the implementation of Sustainable Supplier Development initiatives.