Procurement has several factors that influences its best-practice and successful implementation. Companies of all sizes, across industries and geographies have tools in place that give them greater visibility into and more control over spend, allowing them to more effectively manage their contracts, suppliers and risk; while streamlining and enhancing invoicing and payment processes. Yet many struggle to connect and do business with key trading partners/suppliers. Inter-enterprise commerce is still very difficult because it is largely driven by closed systems and processes. A successful procurement model encompasses the following major categories:
- Processes
- Digital
- Data Analytics
- Governance
- Organisational Capabilities and Culture
Central to these categories, it is the strategy for:
- Business Partnering
- Category Management
- Source to contract
- Procure to invoice.
- Invoice to pay, and
- Supplier Management
BBBEE Context
Broad Based Black Economic Empowerment (BBBEE) seeks to promote economic transformation in order to enable meaningful participation of disadvantaged groups in the economy. The Act defines black people as all previously disadvantaged groups of people—namely Africans, Coloured, and Indians. Other categories of legislative interest are youth, women, people living with disabilities, and people living in rural areas. In addition to this overarching objective, BBBEE in its current design seek to:
- Achieve a substantial change in the racial composition of ownership and management structures in the skilled occupations of existing and new enterprises.
- Increase the extent to which communities, workers, cooperatives, and other collective enterprises own and manage existing and new enterprises and increase their access to economic activities, infrastructure, and skills training.
- Increase the extent to which women (all races) own and manage existing and new enterprises, and increase access to economic activities, infrastructure, and skills training.
- Promoting investment programmes that lead to broad-based and meaningful participation in the economy to achieve sustainable development and general prosperity of communities in which businesses operate.
- Empowering rural and local communities by enabling access to economic activities, land, infrastructure, ownership, and skills; and
- Promoting access to finance for black economic empowerment.
B-BBEE is understood as a legislative framework to guide and implement a set of principles and actions to achieve the policy intent to promote economic transformation. The introduction of the scorecard against which enterprises were measured established the need for a verification process to determine the B-BBEE status level.
The verification process, led by the Department of Trade & Industry (DTI) validates disclosed and undisclosed B-BBEE related information on measured entities. It is important to note that BBBEE is a complex web of interdependencies between different stakeholders, each with different roles to play in the implementation. In its design, B-BBEE combines a set of inputs and undertakes a set of activities to produce outputs which over time lead to immediate outcomes, intermediate outcomes, and the ultimate impact of meaningfully transforming the economy.
Our Approach:
BBBEE in the context of business today for any South African organisation remains complex and the solution for each organisation is unique.
- Workflow process analysis
- Current procurement data analysis
- Current procurement spend analysis
- Assess the procurement dada and obtain BBBEE
- Recalculate BBBEE
- Assess compliance with the Mining Charter and SLP
- Formulate a proposed BBBEE process and workflow
- Draft a report and submit to the client for input and review
- Meet with the client to finalise, post which a final report will be submitted as part of the project close-out