SCM Summit feedback: Intelligent databases further Preferential Procurement

Bernie, Catherine and Francois.JPGTechnology is an effective support for Preferential Procurement Policy implementation and compliancy, Catherine Hills, Client Services Director for Quadrem Africa, told SmartProcurement.

Catherine Hills (Centre), with (from left to right) Commerce Edge CEO Bernie Van Niekerk and IPSA CE Francois Naude

“Technology can be developed and configured to comply with the evolving requirements of Public Sector entities to accommodate ever changing legislation,” said Hills during her presentation to delegates at SmartProcurement’s Public Sector Supply Chain Management Summit.

Sophisticated database technology offers a medium that complies with the evolving requirements of supporting the implementation of preferential procurement policies and the building of BEE supplier databases, which store attributes about vendor organizations.

Procurement and Supplier Management solutions organisation, Quadrem, maintains centralised supplier databases that ensure compliancy, verified HDI Equity Ownership and the SMME status of potential and existing vendors. “A sophisticated database solution can expedite the implementation of Broad Based Black Economic Empowerment by contributing a verified, maintained set of supplier profiles,” said Hills.

Advantages to preferential procurement afforded by central supplier databases include:

•One centralized national database of verified suppliers and service providers. This ensures that each organisation invited to quote or bid is verified as a registered supplier and meets all mandatory legislative requirements.
•A single repository for accessing supporting documentation such as accreditation certificates and banking and company registration documents.
•A streamlined maintenance process ensures valid and up-to-date information such as tax-clearance certificates.
•It provides buyers with direct access to allocated preferences and assists in the adjudication process.

Hills said that due to its adoption of such a database, Quadrem is in a position to contribute significantly to a communication strategy regarding BEE rating requirements. Based on verified financial information Quadrem is able to determine whether a supplier is an Exempt Micro Enterprise (EME) with an average annual turnover less than R5-million, a Qualifying Micro Enterprise (QME) with less than R35-million a year or a Generic Enterprise with greater than R35-million annual average turnover, and to disseminate direct communication relating to the BEE rating requirements for each.

Quotations are gathered by Quadrem and after the closing date the buyer can view the quotations along with the PPPFA calculations based on the supplier profile in the database.

Integration of technologies can provide electronic assistance with adjudication, by automatically allocating preferences housed in the database to quotes and incorporating them into reports. This means that all preferences are automatically allocated from a verified supplier database, said Hills.

The subsequent automatic allocation of preference points (in-line with Supply Chain Management Policies) therefore offers a reduction in the requisition processing time and elimination of the potential human error that could occur should this be a manual procedure.

Preference point calculations can be configured in the system to enable the inclusion of socio-economic fields in line with the PPPFA requirements. Once the revised PPPFA regulations have been finalised, the entire base for calculation will be reviewed to provide for the broad based principles.

The scoring methodology applied in Quadrem’s sourcing solutions is aligned with, and supports the successful implementation of the Municipal Finance Management Act (MFMA), the Preferential Procurement Policy Framework Act (PPPFA) of 2000, and can be configured to support specific Supply Chain Management Policies. Future enhancements will ensure compliancy with the revised Regulations pertaining to the PPPFA.

If you require further information please contact Catherine Hills on 021 680 4604 or email her at

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