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PREFERENTIAL PROCUREMENT

Following the release of the DTI Codes of Good Practice and the draft ICT Charter, Dimension Data very quickly focused on the implementation of a dynamic Preferential Procurement model throughout the company. 

The model was launched in 2001 with full executive endorsement and saw the appointment of Dimension Data Executives, Sean Joubert and Derek Wilcocks, as project sponsors. A small team was subsequently recruited to execute on the preferential procurement strategy and communicate it to the business and Dimension Data suppliers.

The strategy was to initially focus on “non-stock” supplies and services, targeting the vetting of Dimension Data’s 300 largest suppliers in the database, before moving on to qualifying small entities (QSE’s) and micro enterprises. A number of internal projects quickly followed to prepare Dimension Data’s ERP system for the complex reporting that would be needed.

During this period, a number of changes were introduced by government and the DTI, including the phase II release of the Codes of Good Practice in December 2005. The constant changes to the measurement of preferential procurement highlighted the need for a system that was dynamic, flexible and easy to use. 

To this effect, Dimension Data recently commissioned the services of B1SA, which offers a versatile Broad-based BEE management tool aimed at large organizations. The tool enables Dimension Data to speed up the vetting of its large vendor base and to dynamically update the BEE credentials of our suppliers as legislation changes. It also provides a means of effectively measuring our day to day progress on the 7 elements of transformation.

Without compromising on quality, price and service, preferential procurement in Dimension Data has increased from 39.7% in 2004, to over 53% in 2005.

For more information, please contact Mr. Sibusiso Buthelezi on 011 575 1330.











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