Preferential Procurement:

• Services offered by mPowerRatings 
• What you need to know

Services offered:

Procurement has been identified as the most challenging area of scorecard management as it requires assessment of supplier BEE compliance, as well as the collating of information, on an ongoing basis. mPowerRatings offers a comprehensive integrated preferential procurement module where a subscriber can record all its supplier data on a template. Where a subscriber A, and its supplier B, are both users of the mPowerRatings system, any changes to the supplier B scorecard is electronically updated on the subscriber A template, thus keeping subscriber A's procurement data up to date at all times. 

For large organizations with substantial numbers of suppliers, mPowerRatings offers a turnkey procurement solution, including communication with individual suppliers, collating the information in an organized and professional manner, and compiling an integrated BEE procurement report.

For further information please contact us at (011) 486 4814 or at info@mpowerratings.co.za.

What you need to know:

Code 500 Statement 500, and Code 805 (for Qualifying Small Enterprises) deal with Preferential Procurement, the single most important driver of the BEE process. These Codes are binding on organs of state and public entities, particularly as they interact with the private sector in terms of their procurement of goods and services. Significantly, Preferential Procurement carries a weighting of 20% (25% for QSE's) of the total scorecard, and is an area that will be targeted by enterprises to score points. It also means that enterprises which do not directly supply to government, will be affected by the cascading effect down to lower tiers of the supply chain, as even small enterprises endeavour to earn points on their scorecards. Preferential Procurement targets will be based on an amount of controllable (discretionary) procurement from BEE compliant entities, calculated as a percentage of the total controllable procurement from all entities. For further details regarding the above, click the links below: