There is still time; however, it’s important that organisations know how to achieve quick wins to improve the B-BBEE score.
The B-BBEE scorecard measures the level of compliance against five elements, each of which are in turn measured against targets with specific weightings. It may seem overwhelming at a glance, but a solid plan will help your organisation achieve, improve and/or retain a healthy B-BBEE score.
These recognition percentages are applicable to enterprise development, supplier development and socio-economic development. One example would be the recognition of a loan contribution. An interest-free loan contributed towards an enterprise development or supplier development beneficiary is only recognised at 70% of the outstanding loan amount. This would impact the achievement of the maximum score and the entity would have to close the 30% gap by either increasing the loan amount or to top up with an additional contribution such as a grant, which is recognised at 100% of the value contributed.
Another area of improvement in a short space of time is to review and recon the total measure procurement spend (TMPS) with the supplier spend. Aim to achieve a balance between these two of 10% or less. The smaller the margin, the more positive the impact will be on the score.
Furthermore, don’t forget about the enhanced recognition of a multiple factor of 1.2 under this element. If the measured entity has:
Such supplier/s would qualify for this enhancement on their spend. In layman’s terms, every R100 spent with such qualifying suppliers, R120 is recognised towards the preferential procurement score and, as such, can elevate the points.
Unfortunately, there is not a one-size-fits-all quick fix plan that a measured entity can apply to improve its B-BBEE score. By understanding your company and its limitations as well as having the knowledge, expertise and competence of the B-BBEE Codes or Sector Codes against which the entity is measured, a plan can be devised even with only one month to go.
For more information on B-BBEE Scores and all other B-BBEE best practices, visit the BEE Chamber website.