The Challenge: Reducing Supplier Risk
Atlas Copco needed a way to quickly assess the financial health of the many suppliers that provide the components used to build its innovative machines. Previously, the company used a summary of annual accounts to make this assessment, but with the number of suppliers growing to nearly 600, this method was proving cumbersome and time consuming. Without this information, Atlas Copco faced unknown but potentially significant risks from troubled suppliers.
The Solution: Increased Supplier Insight
Atlas Copco installed Dun & Bradstreet’s Supplier Portfolio Manager -- an online analysis tool that will integrate the company’s supplier data with Dun & Bradstreet’s global business database.
How It Works
Supplier Portfolio Manager provides Atlas Copco with three different types of supplier analyses.
First, it assesses the financial health of each supplier. This allows Atlas Copco to stay proactively informed of the evolving risk of existing and potential suppliers, so it can intervene before a supplier gets into possible trouble.
Next, Supplier Portfolio Manager analyzes the company’s dependence on each supplier, along with the potential risk resulting from the loss of a supplier.
Finally, the Supplier Portfolio manager provides a “family provider” analysis that uncovers corporate linkages among suppliers. This information can strengthen the negotiating position of Atlas Copco by enabling the company to generate group-level discounts.
Results & ROI: Reduced Supplier Risk, Improved Supplier Relationships
Supplier Portfolio Manager has provided several benefits for Atlas Copco.