The difference between Supplier and Enterprise Development | SA-Tenders.co.za
Issue Date: 
Wednesday, December 2, 2015

The difference between Supplier and Enterprise Development

The Amended B-BBEE Codes of Good Practice came into effect on 1 May 2015. This means that any business that has a turnover of more than R10 million per annum and that participates in B-BBEE will have to comply with these Amended Codes. Although B-BBEE is absolutely voluntary, it is going to become difficult to avoid if your business is main stream, irrespective of what your turnover is.

One of the easiest ways to earn points is through the Enterprise and Supplier Development Element. This Element counts for 40 points on the Generic Scorecard and for 30 points on the Qualifying Small Enterprise (QSE) Scorecard. The reason it is easy to score points is because there are three sub-elements and you can score points on each one of them. The three sub-elements are:

  • Preferential Procurement;
  • Supplier Development and
  • Enterprise Development.

Preferential Procurement will dictate who your suppliers are going to be in future - new stringent requirements around Preferential Procurement will force businesses to broaden their supplier database. Supplier Development will become very important because businesses are going to struggle with their Preferential Procurement and therefor they will need to develop Suppliers to fulfil their supply chain needs. Enterprise Development will become increasingly critical to feed the Supplier Development as well as the Preferential Procurement supply chain. 

But what is the difference between Supplier Development and Enterprise Development? Supplier Development is performed on your current supplier database whereas Enterprise Development is on suppliers that are not on your database as well as on start-up businesses or new entrants. With Supplier Development the business is already a supplier to your business as where with Enterprise Development the business wants to become part of your supply chain.

Remember that when you do either Supplier or Enterprise Development there are certain rules and regulations that need to be followed:

  • Supplier and Enterprise Development can only be done for 51% or more Black Owned Businesses;
  • These 51% or more Black Owned Businesses must have a turnover of less than R50 million per annum;
  • You cannot claim money spend on Supplier Development as money spend on Enterprise Development;
  • Supplier and Enterprise Development can only be done on existing businesses;
  • The spend on these two sub-elements must be quantifiable in a monetary value;
  • There must be a formal written agreement between your business and the recipient of Supplier or Enterprise Development;
  • The recipient must show its gratitude by means of a Letter of Appreciation.

Last but not least - you must remember that in order for your business to score full points for Supplier and Enterprise Development you will have to spend money on these two development criteria:

  • For Supplier Development you will have to spend 2% (1% QSE) of your nett profit after tax per annum and
  • For Enterprise Development you will have to spend 1% (1% QSE) of your nett profit after tax.

Our advice is to start planning now!

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Title Closing Date Tender No.
NW405 - J B Marks – Potchefstroom Local Office Accommodation 2018-06-08 11:00 IEC/ NW- 01/ 2018
EC443 - Mbizana Local Office Accommodation 2018-06-08 11:00 IEC/ EC- 03/ 2018
Appointment of a panel of service providers for the supply of Ethernet Layer 2 services (Wireless connectivity services) to Sentech SOC (Ltd) for a period of Three (3) years with and optional extension of two (2) years). 2018-06-19 12:00 SENT/005/2018-19
Northern Cape: Victoria West Provisioning of office Accommodation for the Department of Social Development 2018-06-18 11:00 DRPW038/ 2017
Northern Cape: Loeriesfontein Provisioning of office Accommodation for the Department of Social Development 2018-06-18 11:00 DRPW002/ 2018
Cleaning services at SABC Bloemfontein offices. 2018-06-19 12:00 RFP/LOG/2018/36
Placement or outright purchase of film coverslipper analyser for NHLS Braamfontein, Doctor Goerge Mukhari Hospital, Chris Hani Baragwanath Hospital and NIOH for a period of three years 2018-06-11 11:00 RFB031/ 18/ 19
Placement of Haemoglobinopathy Analyser for Groote Schuur Hospital. 2018-06-20 11:00 RFB 014-18-19
Northern Cape: Nieuwoudtville Provisioning of Office Accommodation for the Department of Social Development 2018-06-18 11:00 DRPW004/ 2018
Northern Cape: Frazerburg Provisioning of Office Accommodation for the Department of Social Development 2018-06-18 11:00 DRPW003/ 2018
Placement of haemoglobinopathy analyser for Groote Schuur Hospital. 2018-06-20 11:00 RFB 014/ 18/ 19
General Building Maintenance. 2018-06-20 11:00 COR-A46/2017/2018
Secunda: Dol: Acquisition of office Accommodation Measuring Approximately 192.50sqm and no Parking Bays 2018-06-20 11:00 NST18/ 019
Supply abdominal swabs size: 370 x 450mm x 4ply sterile case of 48 x 5 SABS approved as per specification 2018-05-28 11:00 ZNQ 74/ 18- 19
Amersfoort: Dol: Acquisition of office Accommodation Measuring Approximately 115.20sqm And 02 Parking Bays 2018-06-20 11:00 NST18/ 020
The appointment of a professional service provider(s) to assist with organisational strategy review, policy alignment, business process mapping, business continuity management including annual reporting methodology for the organisation. 2018-06-21 12:00 RE-ADVERT ERW201706/TNDR-009
Supply swabs gauze absorbent size: 100 x 100 x 8ply non-sterile SABS approved as per specification 2018-05-28 11:00 ZNQ 119/ 18- 19
SECUNDA: SAPS: Acquisition of office Accommodation Measuring Approximately 1455.88sqm and 14 Parking Bays 2018-06-20 11:00 NST18/ 017
Supply and deliver toxicoligy kits x 30 kits 2018-05-25 11:00 09/ 2018/ 19
Supply, Planning, Installation and Support of Point to Multipoint Microwave Equipment to Sentech SOC (Ltd) for a period of Five (5) years with the option to renew for an additional two (2) years. 2018-06-21 12:00 SENT/006/2017-18

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Tender adjudication process

The SBD/WCBD6.1 document must form part of all bids invited.  It contains general information and serves as a claim form for preference points for Broad -Based Black Economic Empowerment (B -BBEE) Status Level of Contribution, and explains how tenders or bids are decided.

The document says:

  • The bidder obtaining the highest number of points will be awarded the contract.
  • Preference points shall be calculated after prices have been brought to a comparative basis.
  • Points scored will be rounded off to two decimal places... Read More
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