ProcuresenseLEADERS IN JOB CREATION & SUPPLIER DEVELOPMENT
South Africa’s first democratic election in 1994 envisioned the building of a Rainbow Nation but, what does that actually mean? How was this supposed to come about? Did our political leadership have a strategy required to heal a country suffering f rom unemployment of the previously disadvantaged? How were they going to close the growing divide between the wealthy and poor in our country?
The single, broad term solving these inequalities and forming the umbrella of transformation is the B-BBEE codes. Despite the B-BBEE codes being viewed with a compliance lens, the spirit of the codes seeks to (i) create jobs; (ii) more evenly redistribute the wealth of the country.
In any developing economy, jobs are created by small businesses. Via the B-BBEE codes, corporates are incentivised to spend more with small businesses and as such, these small businesses increase capacity to meet the demands and needs of their corporate clients. Coupling this spend with small majority black-owned (BO) and black womenowned (BWO) businesses enables achieving the objective of the B-BBEE codes. The result? Reducing unemployment by job creation and thus, evenly distributing the wealth of the country.
That’s how the Preferential Procurement scorecard (a sub-element of the B-BBEE codes) looks to assist the B-BBEE codes meet its objectives. It appears fairly simple; however, in excess of ten years since the inception of the B-BBEE codes, on average corporates in South Africa procured less than 10% of its products and services from small majority BO and BWO businesses.
Why is this the case? Unfortunately, while the process is simple, it is not easy. The best practice principles of corporate procurement and B-BBEE codes differ beyond measure. This is why many corporates find great effort in scoring high on their Preferential Procurement scorecard, the true measurement of transformation.
Focusing on Preferential Procurement, as transformation specialists, ProcureSense addresses the long term implications of B-BBEE non-compliance in building our Rainbow Nation and the important role corporates play in transforming our country.
We recently implemented our transformation strategy in a large corporate to ambitiously shift 40% of their entire spend to BO and BWO businesses across SA in the next 3 years. Within the first year of action, ProcureSense has already sustainably shifted over R1billion whilst achieving procurement savings in the same year.
Our purpose is to positively impact 1 million SMMEs in Africa over the next ten years by partnering with corporates to conduct meaningful procurement
transformation. In doing so, together, we will build the bridge to unlockopportunities for the previously disadvantaged thereby improving the holistic economy of SA.
So, if you’re looking to measure your impact on transformation by addressing your Preferential Procurement scorecard and aim to achieve significant and sustainable results, the ProcureSense team would love to support you.
Kicking-off in 2017, the team identified the need to close the access to market gap between SMMEs and corporates by combining best practice procurement and transformation processes. The ProcureSense roots lie in the principles of Mission 1st – Team 2nd – Individual 3rd. To successfully establish these principles, the ProcureSense methodology of “serve 1st” has played a pivotal role in our growth.
The ProcureSense team has had great success in being the catalyst for corporate change and SMME growth and scale. Our intent is simple: Improve the economic and financial well being of South Africa by enabling corporates to conduct meaningful procurement transformation and assisting SMMEs to grow and scale.