ENTERPRISE and SUPPLIER DEVELOPMENT is now the most significant element on the revised Broad Based Black Economic Empowerment scorecard:

The revised Broad Based Black Economic Empowerment [BBBEE] Codes of Good Practice of 2015 consolidated Enterprise Development [ED] and Preferential Procurement [PP] elements into one which is the Enterprise and Supplier Development [ESD] Pillar. In addition, sub-minimal This pillar has been the primary cause of the majority of corporates suffering an automatic downgrade to the BBBEE ratings.

This pillar counts for 40 of the total of 107 points available to measure entities to achieve a minimum of 40% of the total targets of the 3 subcategories of ED, PP and Supplier Development [SD].

The aim of SD is to increase the competitiveness, capacity, and capability of local suppliers. E.g. Training and implementation of ISO9001 or specific skills training.

The amended Codes of Good Practice require the business to commit to supplier development with black owned small suppliers through the supplier development pillar of the scorecard.

How to select Supplier Development [SD] beneficiaries

Companies need to select the right suppliers and engage with them based on an implementation plan that includes;

  • Clear objectives
  • Priority Interventions
  • Key Performance indicators
  • Implementation plan with milestones

The above plan must be signed off by the company and the SD beneficiary to ensure that it passes verification agency requirements. If there is no paper trail or evidence the points cannot be claimed.

  • How should suppliers be selected to ensure the correct risk and governance is managed?
  • How can these elements be evidenced and structured into the ESD agreement?
  • How can this meet the company’s supplier development needs?

With years of experience, the BSC can help build a supplier plan and supplier selection process.

The BSC has a database of Black SMMEs across all sectors. It can assist you to link you to a small black business and ensure all supplier development contracts are in place as well as ensure there is a paper trail for the measured entity to claim points on the BBBEE scorecard.

The BSC is a Registered Section 21 Non-Profit Company with an ISO9001:2015 accreditation.

Other key services offered by the BSC include:

  • Enterprise and Supplier Development Strategy Advisory
  • Corporate consulting on ESD i.e. developing policies and procedures
  • ESD Implementation and Management – i.e. drawing up of ESD contracts, etc
  • Business and statutory compliance for ESP beneficiaries

A few of BSC Clients are Hulamin Limited, BSi Steel, Somta, Aberdare Cables, Absa Bank and Goscor Forklifts

Contact the BSC for all your Enterprise and Supplier Development needs

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