Understanding Enterprise & Supplier Development (ESD) in relation to the BEE scorecard
Firm up your supplier database to gain a competitive advantage
LFP Training recently launched a series of #BEEBenefits emailers aimed at educating current clients and potential clients on the practical application of BEE and its true benefits.
More than just a number, your BEE rating positions you as a responsible and sustainable business partner. It’s a true testament to show that you are committed and invested in the social, education and economic acceleration of our country.
One of our emailers recognised ESD as a critical component of the scorecard. By partnering with a BEE compliant business, companies can claim additional points towards Enterprise and Supplier Development. This in turn helps to ensure the sustainability and success of such businesses in South Africa.
So, what does ESD really mean?
ESD is a combination of preferential procurement, supplier diversity and development and enterprise development programs used to service a business’s needs.
Enterprise Development contributions take many forms. It is not the value of a contract given to a black business but rather the contributions towards technical help, the transfer of knowledge and skills, operating cash flow, loans and/or investments.
There are a host of benefits to embarking on ESD, these include; an improved BEE rating, gaining a competitive advantage and reducing costs, supporting a compliant business, a strong and positive association for your business with a compliant business and much more.
LFP Training offers ESD support services such as the implementation of sustainable supplier development programmes, profiling and analysis of your supplier database, enabling procurement opportunities for EME’s through collaboration and partnerships and promoting the upskilling of EMEs and facilities the quality of services provided.
For more information on our list of services, click on the services tab on our website.