Lanham-Love Consulting works hand-in-hand with our clients on an on-going basis, managing and implementing the relevant, custom designed B-BBEE strategy best suited to your overall objective. One such B-BBEE strategy could be to focus extensively on the Enterprise and Supplier Development element of the B-BBEE Scorecard.
“The intended purpose of Enterprise Supplier Development, or ESD, is to strengthen and diversify a company’s supply chain,” says Angie Lanham-Love, CEO of Lanham-Love Consulting. “At the same time, ESD seeks to stimulate job creation and economic transformation. This is done by focusing on the extent to which companies buy goods and services from Empowering Suppliers with strong B-BBEE recognition levels.”
“In addition, ESD also measures the extent to which enterprises carry out supplier development and enterprise development initiatives intended to assist and accelerate the growth and sustainability of black enterprises,” says Lanham-Love. “Your Supplier Development beneficiaries should already be in your existing repertoire of suppliers, whereas your potential Enterprise Development beneficiaries are those companies who could, with the adequate support and development, become your suppliers in the future.”
“B-BBEE, when implemented correctly, seeks to benefit all parties involved,” says Lanham-Love. “This is especially true in the case of Enterprise and Supplier Development. Enterprises and Suppliers benefit from the investment and involvement of your business, in helping them to grow and develop into economically sound businesses capable of standing on their own. Your business benefits from having trustworthy and reliable suppliers who not only help your company capitalise on a diversified supply chain, but who also contribute to your overall B-BBEE score.”
So, what is the best way to make use of the ESD element of the B-BBEE Scorecard for your business?
“Your company can contribute directly to your selected Enterprise or Supplier,” says Lanham-Love. “This can be done via grant contributions, discounts given to enterprises or suppliers, services rendered by your company that are not charged for, or even loans given. However, if your business in not in a position where this can be done without incurring considerable cost or inconvenience, another option can be to go through an intermediary.”
“Payments can be made to an intermediary that is suitably qualified and experienced to perform enterprise and supplier development initiatives on your business’s behalf,” says Lanham-Love. “For example, our sister company The LLC Academy is a 73.57% black owned qualifying Enterprise and Supplier Development Beneficiary. As our client, you choose how your funds will be used. All the necessary documentation for verification, as well as a valid B-BBEE Certificate, is provided by The LLC Academy. As The LLC Academy is designated under each element of the B-BBEE Scorecard, every R100 that you spend with the LLC Academy counts 4 times as R125.”
Lanham-Love Consulting works with you directly to manage and implement your B-BBEE strategy throughout the year, meaning that we can take corrective action as and when it is needed. Speak to our consultants for a truly effective B-BBEE strategy curated with your business’s specific needs in mind.