Statement-400 General Principles for Measuring the Development of Enterprises and Suppliers
This is the 10th article in a series discussing B-BBEE Sector Code Scorecards for the Events, Technical and Production Services industry.
This article explains the basics of the Code Series ETPSI-400: Measurement of Enterprise and Supplier Development.
Purpose of this statement
1.1Specify a scorecard to measure the development of companies and suppliers.
1.2Specify key measurement principles applicable to calculating preferred procurement contributions. Contributions to qualified enterprise and supplier development.
1.3 Define the applicable principles when calculating B-BBEE procurement expenditures and enterprise and supplier development expenditures. and
1.4 Provides formulas for calculating individual criteria specified in the Enterprise and Supplier Development Scorecard.
Enterprise and Supplier Development Scorecards
Key Measurement Principles
3.1 Enterprise and supplier developments are as follows:
3.1.1 Priority procurement. 3.1.2 Enterprise development. and 3.1.3 supplier development.
3.2 Contributions of enterprise and supplier development are recognized as a percentage of post-tax annual net income (NPAT).
3.2.1 Net income after tax (NPAT) or average target is unless you have made an average profit over the last year or the past five years, except in the following cases: If you use 3.2.1.3 Sales, the target is set to 3.2.1.3.1 1% (ed) or 2% (SD) x Indicator Profit Ratio (NPAT/Turover) XX Leave.
Subminim and discount principles
3.2.1 The measured entity must achieve a minimum of 3% of each of the total weighting points, as described in Statement-000, paragraph 23.1.
3.2.2 In accordance with paragraph 3.1, violations of one or more threshold targets will be discounted on the overall achieved B-BBEE status level in accordance with paragraph 12.1 of Statement-000.
3.
(a) At least 25% of the selling costs excluding labor and depreciation must be sourced from local producers or local suppliers in SA, as it includes labor costs in the service industry but concludes at 15%. (b) Job Creation – 50% of the jobs created were for black people, and there is a number of black employees as immediate and validated B-BBEE measurements were maintained. (c) Conversion of at least 25% of the raw materials/beneficiaries, including local manufacturing, production and/or assembly and/or packaging. (d) Skill Transfer – at least 12 days of productivity deployed to help Black Ame and QSE beneficiaries improve their operational or financial capabilities.
3.3.1 Exempt Micro Enterprises and Startups are automatically recognized as empowerment suppliers.
3.4 Company and Supplier Development Scorecard weighting points represent the maximum number of points possible on each criteria.
3.5If the measured entity procures goods and services from a supplier:
3.5.1 Recipients of supplier development contributions from measured entities under Code Series 30 under which they have a minimum of 3 years agreement with measured entities, recognizable B-BBEE procurement expenditures that can multiply that supplier by a factor of 1.2. 3.5.2 A black-owned QSE or EME who are not a supplier development beneficiary but have a minimum of 3 years contract with the measured entity, have a recognizable B-BBEE procurement expenditure that is thought to multiply that supplier by a factor of 1.2. 3.5.3 Suppliers of measured entities owned by at least 51% of black owners or at least 51% of black women using flow-through principles, recognizable B-BBEE procurement expenditures that are thought to be multiplied by a factor of 1.2.
3.6 Procurement of goods and services, and other activities below 2.1 (in the table above) are not eligible for scoring for 2.2 and 2.3 (in the table above) and vice versa.
3.
3.8 Supplier Development Beneficiaries are part of the measured entity supply chain, whereas Enterprise Development Beneficiaries are not.
3.9 B-BBEE Procurement Events, Expenditures from the Technology and Production Services Industry B-BBEE Sector Code Entity Suppliers can be recognized by at least 51% of Black Owners or at least 51% of Black Women, and at least 51% of Black Women owned using the principles, with the Point Indicators 2.1.2 and 2.1.3 on the Enterprise and Supplier Development Scorecard. However, this is based on the first provision of the procurement of goods and services, and it has been identified that such a supplier is an EME or QSE. recognition
Point indicators 2.1.2 and 2.1.3 are permitted only for five years after the first procurement of goods and services from such suppliers.
General Principles
4.1 Actively support procurement from black-owned QSES and EMEs by identifying opportunities to increase sourcing from local suppliers to support job creation.
4.2 Supporting procurement from black-owned and black women-owned businesses to increase the participation of these businesses in the mainstream economy.
4.3 Promoting the use of black-owned professional service providers and entrepreneurs as suppliers.
4.4 Measured entities receive recognition for their contributions of enterprise and supplier development that can be quantified as monetary value using standard valuation methods.
4.5 Measured entities are recommended to align corporate and supplier development initiatives with designated sectors of government localization and value-added programs.
4.6 Measured entities are recommended to combine enterprise and supplier development initiatives with priority sourcing, tailoring enterprise and supplier development to supply chain requirements.
4.7 The contributions of qualified enterprise and supplier development of measured entities are recognised annually.
4.8 Contributions, programs, and/or initiatives spanning several years must divide the total contribution by the number of years, and the annual average must be used for annual contributions.
4.9 Measured entities are encouraged to develop and implement enterprise and supplier development plans for qualified beneficiaries. Your plan should include:
4.9.1Clear Purpose
4.9.2 Priority intervention
4.9.3 Key Performance Indicator. and
4.9.4 A concise implementation plan with clearly stated milestones.
4.10 Measured entities are not recognized for the same activity carried out in 2.2 and 2.3, but only two IEs 2.2 or 2.3 are recognized.
4.11 After the measurement date forms part of the calculations based on this statement, there is no part of the value of the contributions of eligible enterprise and supplier development paid to the beneficiaries.
Now, part 1 of the Code Series ETPSI-400: Measurement of Enterprise and Supplier Development.
Part 2 discusses the total measured procurement expenditure, the total measured procurement expenditure, the measurement of B-BBEE procurement expenditure, and calculation of prioritized procurement contributions to B-BBEE.
