London Construction Project
Dun & Bradstreet helps a major London construction project stay on track
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The business need
To fully understand the capability of the construction supply chain to deliver a major London infrastructure project on time.
As the delivery partner partnering with a public organisation, this company is charged with the critical role of procuring contractors to construct the infrastructure for a major government project, due for delivery in 2012.
A multi-billion pound scheme and currently the largest construction development underway in Europe, this development is like no other construction project. Since work started in 2006, thousands of firms have been employed to build key venues such as media centres, accommodation and all adjoining roads and bridges.
With billions of pounds of public money at stake and a deadline that simply cannot move, mitigating supply chain risk is a key concern. As the Head of Supply Chain Management at the delivery partner explains: “There is absolutely no margin for error. This event will begin on a set date in 2012. This date is set in stone and we have to be ready. As a result, it’s vital we fully understand the capability and capacity of the construction supply chain to deliver against such a tight deadline.”
To assure such visibility the delivery partner needs to understand the financial health of every business in the construction supply chain. This includes the larger tier one contractors, but also the firms they employ and the specialist companies responsible for areas such as lighting and surfaces.
A complex and demanding challenge at any time, this construction project is taking place during one of the worse recessions in a century - a downturn that has seen the construction sector among the hardest hit.
The active management and monitoring of all construction suppliers is central to managing risk and safeguarding the integrity of the entire supply chain.
Dun and Bradstreet provides the organisation with a range of financial information on more than a thousand companies. The intelligence, which includes data on accounts, balance sheets and assets, and payment history, is accessible online and is updated on a daily basis so staff can monitor how a company’s situation is changing and be alerted when any risks emerge.
Access to up-to-the-minute business information on all organisations within the supply chain ensures the delivery partner is able to uncover potential risks to suppliers, undertake replacement decisions with confidence, and determine the overall health of the supplier network.
Furthermore, gaining an in-depth view of the supply chain – including corporate linkages and sub-contractor relationships – ensures they are able to scope the wider impact of supplier risk or payment behaviours on the overall performance of the supply chain.
As the Head of Supply Chain Management explains, “Not only do we want to know the financial situation of the larger companies, we also need historical information on how they pay their contractors to assess whether this might put a smaller firm at risk. D&B provides us with valuable information which enables us to make informed judgements based on fact.”
• Easily accessible online financial intelligence on over a thousand supplier companies
• Financial information is updated on a daily basis, so managers can identify any risks that emerge as soon as possible
• The insight D&B provides enables the delivery partner to run their procurement operation within strict guidelines laid down by the National Audit Office
• The project is ahead of schedule and not one construction contractor has gone bankrupt
D&B’s Supplier Portfolio Manager (SPM). An Internet based portfolio analytics tool which merges vendor management data from one or more ledgers with D&B’s data and scores. Delivers a comprehensive, objective and trackable view of the overall risk and spend management opportunities within a supplier portfolio.