Flight Centre Business Travel, part of the Flight Centre Travel Group Corporate (Pty) Ltd has made significant progress in its transformation journey, achieving an jump from Level 4 B-BBEE to Level 1 status in just under one year.
“We are immensely proud of this achievement and what it means. Our rating also has a direct impact on the competitiveness of our clients. A Level 1 score offers benefits to everyone in our supply chain, both financially and concerning increasing their own BEE scores,” says Ryan Potgieter, General Manager Flight Centre Business Travel.
Companies that procure only from Level 1 suppliers spend less but can claim more. When a potential customer is in the process of choosing a supplier, their own BEE level is affected by the supplier’s level. And the higher the supplier’s level, the more the customer can claim towards their procurement spend.
“It is simple maths: if clients choose a BEE level 6 company, only 60 cents out of every rand they spend will count towards their own BEE scorecard. However, as a Level 1 company, for every R1.00 our customers spend with us they can claim R1.35 against their own preferential procurement scoring,” says Potgieter.
This means that if a company procures mostly from BEE compliant entities with a high score, it results in their procurement score being high without changing anything pertaining to the ownership, management or financial structuring of the company.