D&B Morphs and Grows Its Overall Supply Management and Risk Strategy (Part 4)

In this final post in this series covering D&B’s Supplier Risk Manager solution (click here for Part 1, Part 2 and Part 3), I’ll provide additional commentary on how D&B leverages predictive indicators to forecast supply risk, thereby giving as much early warning of impending supplier failures or supply disruptions under ideal (and hopefully less than ideal) circumstances as possible. As a foundation for its predictive indicators, D&B first leverages the DUNSRight process, focusing on five key steps: global data collection, entity matching, D-U-N-S® Number creation, corporate linkages and then, predictive indicators. Based on reference checks we’ve conducted on the underlying process for collecting this information, we’ve found the quality and depth to be the highest for companies above a certain threshold (e.g. $200 million) in North America. D&B’s process begins with sorting through what they claim is 20,000 data sources, including: trade data, banking information, court / legal filings, business Internet Data, Business Registries, Company Financials / National Debt Rankings and D&B telephone interviews.

This process has led to D&B’s current management of records on 27 million+ businesses in the U.S. and on 160 million businesses in more than 200 countries. Spend Matters’ own research and analysis suggests that while the number of companies’ data D&B maintains is large indeed, that the actual depth and accuracy of the data, like all sources of supplier intelligence, will vary based on such variables as the size of suppliers, their primary and secondary geographies and locations, industry, private / public status, etc. Still, even accounting for stronger profile information and data collection in certain market areas and segments than others, overall, D&B’s record of predictive insights around supply risk is solid.

D&B suggests that by using its predictive scoring, procurement organizations can more accurately project supplier failures within the portfolio of suppliers they opt to monitor…

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Obsessed with how companies manage, spend and save money, Jason writes about procurement, trade and supply chain issues @ Spend Matters. He has significant first hand experience developing and marketing technology and services products, has advised numerous companies on sourcing and related techniques as well as M&A pursuits.  In previous lives before tech, he was a management consultant and merchant banking analyst.