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Why You Need to Implement B-BBEE-Related Tasks in Your Business

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    What is Enterprise Supplier Development? ESD is a mixture of Preferential Procurement, Supplier Diversity, Supplier Development and Enterprise Development programmes to service business requirements. They are all part of the Broad-Based Black Economic Empowerment policy to improve South Africa's economic transformation. To briefly explain what enterprise and supplier development programmes all entail, it involves the following:

    • Preferential Procurement is a national policy that encourages government departments (PPPFA) and private organisations (B-BBEE) to purchase products and services through previously disadvantaged individuals or organisations.
    • Supplier Diversity is the active business process of obtaining products and services from prior under-utilised suppliers and or new suppliers by means of B-BBEE Level considerations. This process assists with sustaining and progressively transforming a business’s supply chain, therefore quantitatively indicating the demographics of the public in which it operates by documenting transactions with various suppliers.
    • Supplier Development is the process of working with particular suppliers on a one-on-one basis to enhance their performance for the advantage of the buying organisation, further leading to other improvements in the total added value from the supplier in doubt in terms of B-BBEE rating, product or service offering, business methods and performance, developments in delivery and lead times.
    • Enterprise Development is a strategy for promoting economic growth and reducing poverty through building SMMEs, and membership organisations to help represent them to the public and competitive markets that are much greater and more inclusive. It also consists of financial and non-monetary, recoverable, and non-recoverable contributions introduced in favour of a beneficiary entity by an entity with the precise objectives of assisting or accelerating the development, sustainability, and eventually financial independence of the beneficiary.

    When it comes to enterprise and supplier development programmes, there is no ‘one-way’ approach.  Businesses must select the most suitable method to suit their needs and the relationship with the beneficiaries that have been chosen for development. Prior to any decision being made to further implement Enterprise Supplier Development, the business’s needs and objectives must be determined. Enterprise Supplier Development is a two-way action that should be known as a joint endeavour. No matter what approach to Enterprise Supplier Development is being utilised, businesses should ensure measurable and significant results that lead to more business benefits.

    Enterprise Supplier Development projects should be able to be assessed, observed, and evaluated in terms of measurable operational and financial impact. Having a planned project must be developed and implemented in order to make sure that supporting evidence that is required in order to guarantee that Enterprise Supplier Development projects will benefit under all B-BBEE codes is accumulated. It is not necessarily only the leading suppliers which should be authorised for Enterprise Supplier Development programmes, each supplier should be evaluated on the basis of individual value and potential. Enterprise Supplier Development experts should acquire relevant expertise.  They need to have the necessary interactive and communication skills to be able to convince stakeholders and beneficiaries that may be unwilling to go aboard a development programme. There are endless benefits when relying on Enterprise Supplier Development programmes.

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