Fronting is a criminal offence and therefore Tran-Source would at all times seek to work with organisations that support the spirit of Transformation
Tran-Source (Pty) Ltd is a 100% Black Owned Transformation Advisory and Consulting organisation, and we are proud of being involved in this industry that talks to our team’s combined passion for development at grass root level. We couldn’t be doing any other thing.
It takes some time and investment for any organisation or company to reach a sustainable transformational destination. Many times, we have seen some organisations that wants to reach that destination without a road map of how they will get there. We believe that it is very important for any organisation, big or small to have a clear road map formulated from its core focus, that encompassing its Vision, Mission, Values, and Clients Promise, in order to spread into a message that its stakeholders can understand, carry and implement to reach its transformational goals.
Many organisations perceive BEE to be a process that needs to be undertaken during that part of the year when they undergo BEE audit. However without proper implementation of an existing BEE strategy throughout the year, the end results of what might be a month long audit will result in less than desirable results. Hence we always encourage all of our clients to allow for a process whereby there is a thorough review and assessment of their status, prior to the financial year end period, in order to implement any short-term initiatives that can yield short term results, thereafter devise a long term strategy to improve on performance.
As consultants, as we would like to be involved in all the organisations that we work with through delivery and support, and being part of the implementation process,, we highly recommend that organisations should empower their internal teams and resources, through knowledge and skilling, especially the nominated “BEE Champions”, in order to create a sense of ownership of the implementation process. For every client we engage with we start with the education process – and this is mandatory.
We are also classified as an SMME (Black Owned), therefore we do appreciate the challenges that such organisations face in order to succeed. Therefore this product offering is very close to our organisation’s heart as it helps us to help other small Black Owned organisations to obtain assistance that they might have otherwise not been able to obtain, had it not been for the BEE legislation. We always endeavour to ensure that all Enterprise and Supplier Development beneficiaries involved in our programmes understand the client and their obligation in the process of building a sustainable relationship.
Enterprise & Supplier Development
Procurement as a tier in the BBBEE scorecard requires that at least 80% of the spent must be with BEE compliant suppliers that are empowering organisation. From the 80% at least 30% must be procured from Empowering QSE and EME suppliers. Most of the points are allocated to ensuring that at least 40% of the 80% spend is with Empowering Suppliers that are more than 51% Black Owned – 9 points. At least 12% must be spend with Empowering Suppliers that are more than 30% Black Women Owned for 4 points. Bonus points are allocated for procurement from Designated Group Suppliers.
A question can be asked what a BEE compliant enterprise is. With a level 04 enterprise an organisation can claim 100% of the value of the spent with a specific supplier, and level 05 only 80%; a level 03 a measured entity can claim 110% of the value of the spend. Therefore an optimum level an organization must aim for is a level 04 or better.
Enterprise Development measure the extent to which a measured entity development SMMEs owned by black people. Contributions can be either monetary or non-monetary towards sustainable development of the beneficiary. The target for this element is 3% of Net Profit after Tax.
Beneficiaries of Supplier Development and Enterprirse Development: – More than 51% Black Owned or more than 51% Black Women Owned EME or QSEs.
An organisation that has no internal resources to help implement their Enterprise and Supplier Development programme, can outsource the project to a third party organisation. All funds paid over to the third party are recognisable as Enterprise and Supplier Development contribution.
This element measures the extent to which organisations contribute toward socio-economic initiatives geared towards projects that will provide access to the economy for the beneficiaries. This can be viewed as a long term investment into society in that donation to a charity will only realise economic benefits of the young black child once they have grown up. The important factor is that they were provided with food, security, education (bursaries, school material), health care etc. to contribute to their wellbeing and development.
Social development beneficiaries are either black individuals, or, as is more commonly the case, communities or groups of people. In the latter case the percentage of black people within the beneficiary group affect the amount of spend recognition in terms of the Codes:
Where 75% of the beneficiary group is black, then the full value of the contributions is recognizable.
Where less than 75% of the beneficiary group is black, then the value of the contribution multiplied by the percentage benefiting black people.
An analysis of the codes shows that the recipients are also persons with disabilities, unemployed people and people living in rural areas.
The target for this element is 1% of Net Profit after Tax which can be monetary or non-monetary contributions.