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Xeon Logistics is a Level 1 B-BBEE contributor with black, female ownership

  • The new B-BBEE codes shows significantly increased importance being placed on procurement from suppliers which are not merely B-BBEE compliant, but which are specifically empowering of previously disadvantageous groups through ownership mechanisms. To this end, using Generic B-BBEE Codes, in comparison:
    • Procuring from any empowering supplier (which is not necessarily a recognised small to medium or black owned entity), has dropped significantly in weighting- providing 5 of the available 25 points, as opposed to the previous 12 of 20 available points.
    • Instead, 13 of the 25 available points under the procurement category may now only be secured through procurement from an empowering supplier which is specifically 51% black owned and 30% black female owned.
  • Xeon, as a B-BBEE level 1, 51% black female, owned company, provides its customers with the following procurement benefits:
    • As a B-BBEE level 1 supplier:
      • A multiplier effect of 135% wherein the total procurement a customer spends with Xeon is multiplied by 135% when calculating a customer’s procurement spend with empowering suppliers, as an expression of total procurement
    • As an empowering supplier which is 51% black owned:
      • Significant contribution to the sub-category, which stipulates that at least 40% of a customer’s procurement spend must be with suppliers which are at least 51% black owned
    • As an empowering supplier which is 30% black, female owned:
      • Significant contribution to the sub-category, which stipulates that at least 12% of a customer’s procurement spend must be with suppliers which are at least 30% black female owned, and
    • As a designated supplier:
      • Providing Xeon clients with the ability to secure bonus points under the procurement category Xeon qualifying as a supplier which is 51% owned by black youth as defined in the National Youth Commission Act of 1996.
  • Thus, due to Xeon’s unique structure, customers enjoy significant B-BBEE procurement points, well beyond the benefit provided by most other level 1 or 2 accredited logistics suppliers.