BBBEE @ RAM
RAM Hand-to-Hand Couriers recognises the importance of transformation in South African society. Independent Auditors and SANAS accredited BBBEE Verification Agency, Mazars, has prepared RAM’s annual Broad Based Black Economic Empowerment Report.
- has achieved a BBBEE Contribution Status of a Level 3 Contributor.
- is a "Value-Adding Supplier" which means an entity registered as a vendor, whose Net Profit Before Tax summed with its total labour costs exceeds 25% of the value of its total revenue.
RAM has achieved the status of “Value Adding Supplier” due to the fact that we:
- have a policy of job creation.
- employ our personnel as full-time employees as opposed to outsourced labour and/or owner drivers.
Accordingly, our total labour costs are our largest expenditure item.
In terms of the Codes of Good Practice on Black-Economic Empowerment signed by the Minister of Trade and Industry on 09 February 2007:
- a Level 3 Status Level entitles purchasers to recognise 110% of their procurement from the measured entity when preparing their B-BBEE certificate
- when calculating “Measured Spend”, our clients are entitled to multiply their Total Annual Spend by 1.25, thereby effectively providing clients with effective procurement spend recognition of 137.5% (110% x 125%) which exceeds the equivalent Level 1 recognition level for a non-value adding supplier of 135%.
This is an excellent incentive for our clients as none of our competitors has a comparable BBBEE rating.
By creating full time employment, our personnel are assured NBC benefits including annual 13th cheques, Leave Pay, Holiday Pay and Sick Pay. Should any prospective supplier use outsourced labour and/or owner drivers then salary payments would be seen as expenditure rather than payroll costs and the employees will not have the same benefits.