“Empowering organisations to empower people through Systems …”
Identify or build ‘turn key solutions’ for big and corporate organisations doing business in South Africa through an detailed Financial- & Supplier analysis. BEE procurement is a challenge for many companies in South Africa and for many is the one element where sub-minimums are not reached which leads to the organisation been discounted by one BEE level. B4i IPS will find and/or create solutions.
B4i IPS is an enabler of supply chain improvements via integration and systems. It focuses is on the big and corporate organisations to find solution for BEE procurement in South Africa. At the same time it is extending a helping hand to small and entrepreneurial companies to grow their business.
‘IP’: Intermediate Products (PRODUCT focus)
- Advise and implement on value adding activities in the existing supplier chain.
- Optimise the supply chain (often via the logistic chain)
- Import & export support (Cost saving)
- Improve products for BEE marketability
‘S’: Systems (SERVICE focus)
- Value adding in the supply chain via systems.
- Optimise the supply chain via tools to minimise paperwork & reduce non-value adding activities
- Assist with system integration (connect Consumer with Supplier)
- Access to a guaranteed and secured payment system / platform
- Compliance improvement (BEE, Financial, CIPC, …)
The B4i Mpowered BEE Management System can assist companies to simplify BEE, make it more tangible, measurable and transparent and helps with compliance and managing risk. A balanced solution between managing it yourself and having the support of a system and the knowledge to apply this.
As a 51.25% black women owned QSE with a Level 2 BEE status, each product or service procured via B4i IPS can score up to 17.8 times more points on the generic BEE scorecard than the same product offering from a large company with and Level 4 BEE status could.
Operating successfully in South Africa one not only need to have a good PRICE and superior QUALITY. One also need to have the right BEE status. For most this is about having a high BEE level (e.g. Level 1 or Level 2). Much more important for BEE procurement however is size and their black ownership. The aim is to find the right balance between PRICE, QUALITY and BEE. We will find the mix.
Below is an illustration of how procurement from an ‘black owned smaller supplier can benefit a large corporate enterprise in South Africa which is measure under the Amended Revised Codes of Good Practice (CoGP). This example applies to a Measured Entity with an annual turnover of about R65 billion or a Total Procurement Spend (TPS) of about R63 billion and a Total Measure Procurement Spend (TMPS) of about R55 billion.
In other words a collective of small black supplier can benefit a large corporate up to 36x more than its large ‘non-black owned’ counterparts. Putting it in another way, this large corporate has to pay for example one of the big cell phone providers with a Level 4 BEE status about R8.7 billion to earn this ME (Measured Entity) one (1) point, while only R215 million spend is needed for one (1) from a Level 1, more than 51% black owned, more than 30% black women owned supplier and more than 51% is from an black designated Group suppliers. A more realistic example would be to spend R525 million on a Level 2, >51% black women owned supplier to score one (1) point vs. R8.7 billion on a large corporate which struggles to get to a Level 4 BEE status.
On a different scale, where the Measured Entity (ME) is a small generic enterprise with an annual turnover of about R50 million and a Total Measure Procurement Spend (TMPS) of about R43 million: An annual subscription fee for the B4i Mpowered BEE management system will score the ME most likely same amount of points than one of its top 5 – 10 biggest supplier which is a generic enterprise on Level 4.
Bernd Feucht – Director (IPS)
35 Catherine Ave, Shere, Pretoria-East
012 – 940 1900