Atlas Copco and D&B's Portfolio Manager Supply: a match made in heaven

 The needs

“Atlas Copco was looking for a speedier way of checking the financial health of our suppliers,” said Mike Callens. "In the past we did this by looking at a list of annual statements of accounts. Given that we now have around 600 different suppliers, this was nigh on impossible. The cumbersome and time-consuming work involved in processing the data about our growing number of suppliers meant that it was no longer possible to discover who had a healthy financial record.”

The Supply Portfolio Manager

The solution that was installed at Atlas Copco was the Supply Portfolio Manager. This is an online analysis tool that merges data about a client’s suppliers with the worldwide data in the D&B database. The underlying concept of the Supply Portfolio Manager is to obtain an insight into the total portfolio of - in this instance suppliers - and translate the supply strategy into a competitive advantage. By linking multiple orders it is possible to negotiate better conditions.

The Supply Portfolio Manager provides three types of analyses that are based on three different goals. The first is the analysis of the supplier itself. This gives Atlas Copco perfect and continuous information about changes in the risk profile of existing and potential suppliers. And because the company is notified proactively, it can react before a supplier starts getting into difficulties. The Supply Portfolio Manager then makes an analysis of the dependency of the supplier to identify any risk of the supplier disappearing. And finally it also provides an analysis of the ‘supplier family’ to check which other suppliers are associated with it. This strengthens Atlas Copco’s negotiating position so that it can demand group discounts.

"We sent a matrix to Dun & Bradstreet containing the data about our 600 suppliers. D&B loaded this matrix into the Supply Portfolio Manager making it possible for us to extract the details that would allow us to ascertain which suppliers were reliable and which were less so,” added Mike Callens.

The results

“The aim of the Supply Portfolio Manager was to generate a clear overview of who is a healthy supplier and who is not. After obtaining the necessary data we talked with those suppliers that obtained a negative rating. This ensured not just a clarification of their situation for us, but it also encouraged the supplier to take action. It appeared that they were not always aware of their negative rating and they were sometimes able to overcome this by implementing changes. The discussions with the suppliers also enhanced the relationships. Thanks to the Supply Portfolio Manager we now save considerably more time and have access to data when we want it. Thanks to the other analyses provided by the Supply Portfolio Manager we were also able to check the dependency of our suppliers. The possibilities offered by the different analyses go much further than what we initially needed the Supply Portfolio Manager to do, but instead of having to go through masses of data as we did in the past, we now have speedy access to the information that we need,” concluded Mike Callens.

Partnership with D&B

“The partnership with Dun & Bradstreet ran very smoothly. We sent them the data they asked for and they did the rest. The data processing went very speedily and the Supply Portfolio Manager was installed without any problems. We chose a three-year partnership and all the advantages we were looking for have already been delivered. After installing the Supply Portfolio Manager and without our requesting it, D&B offered us on-the-job training. An offer we could not turn down of course!”

About Atlas Copco

Atlas Copco is a world leader in providing industrial solutions for increasing productivity. Atlas Copco supplies a wide range of products and services from air and gas compressors, electricity generators, construction and mining materials, industrial equipment and assembly systems through to aftermarket and rentals. Thanks to close partnerships with its clients and corporate partners and more than 135 years of experience, Atlas Copco is able to launch innovative machinery and services that offer superior productivity. Because the systems in question are often very complex Atlas Copco uses a large number of suppliers for specific parts.

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