Preferred Procurement Policy
Preferential procurement policies enable a private-sector entity to score points on a scorecard on the basis of procuring goods and services from entities that have a favourable BBBEE profile.
The reporting and management process for organizations to monitor and report their performance is often being done manually by reconciling multiple spreadsheets. This is a time consuming and expensive process often producing reports that don’t have management’s confidence.
State owned enterprises* are also required to do Vendor Rotation where suppliers are registered and up to eight commodities assigned to them. Suppliers are categorised into geographical areas and according to the categories of commodities they provide. Vendors are then rotated in the solicitation process. Vendor rotation is complex to manage and when done manually; lacks transparency and is open to abuse.
AccTech VRM (Vendor Relationship Management) allows business to automate the procurement process by utilising the existing Sage ERP Accpac Accounts Payable and Purchase Orders modules. In addition to the standard features of AccTech VRM, AccTech eWorkflow can be added as an additional module to assist in the actual procurement and payment process.
AccTech VRM provides:
- An entry point for the Supplier application process;
- The ability to manage the supplier application process with suitable workflow processes and appropriate document control;
- A central view to manage all application requirements and ensure compliance;
- The ability to manage potential suppliers who may not yet official vendors in Accounts Payable;
- Details of vendor accreditations including the ratings or Preference Points as per the Preferential Procurement Regulation;
- An entry point for the Preferential Points allocation i.e. Previously Disadvantaged Individuals (PDI) – sometimes referred to as Historically Disadvantaged Individuals (HDI), Women Equity (WE) and Disabled Individuals (DI);
- An interaction with eWorkflow to supply the above information for the supplier rotation and request for quote (RFQ) process in eWorkflow;
- Procurement document control;
- Renewal reminders and alerts; and
- A Commodities database.
*Trading government entities are subject to the Public Finance Management Act (PFMA) of 1999. For Supply Chain Management (SCM) the Preferential Procurement Policy Framework Act (PPPFA), Act 5 of 2000, governs the Standard Bid Document (SBD) 6.1, 2001.