The pressure on supply chains is increasing. Suppliers going bankrupt, ever-longer sanctions lists, and quality issues that bring your production to a standstill: these are everyday realities. For procurement teams, proactive risk management is therefore not a luxury, but a necessity. Altares Dun & Bradstreet adds immediate and measurable value to purchasing and procurement departments in four crucial areas. Below, you can read about the risks involved, the challenges they present, and how you can stay ahead of them with Altares' insights.
Financial instability of suppliers
The risk:
A supplier experiencing financial difficulties may be unable to meet its obligations. Deliveries stagnate, contracts get stuck, and the continuity of your own organization is jeopardized.
The challenge:
A lot of companies only find out late that a supplier is about to go out of business. Annual reports are often outdated, and early warning signs get missed.
The added value of Altares:
With up-to-date credit reports, the D&B Failure Score, and Paydex (payment behavior), you gain insight into the financial health of suppliers. Automatic alerts warn you as soon as credit ratings worsen.
Example:
An international manufacturing company used the D&B Failure Score to analyze its supplier base. Three high-risk suppliers were identified months before their bankruptcy. Thanks to timely action, the company was able to contract alternatives without interrupting supply, saving an estimated โฌ1.2 million.
Interesting read: The value of an Early Warning System (EWS) for companies
Geopolitical risks and sanctions lists
The risk:
International trade involves geopolitical risks. A supplier may end up on a sanctions list or work with subcontractors in high-risk areas.
The challenge:
Sanctions lists are constantly changing. Without structured monitoring, you run the risk of doing business with parties that cause legal or reputational damage.
The added value of Altares:
Altares screens more than 450 sanctions lists, including Politically Exposed Persons (PEPs), and provides insight into the UBO structure of companies. This way, you always know who you are really doing business with.
Example:
A Dutch technology exporter used D&B sanctions screening and discovered that a distributor was indirectly owned by a sanctioned company. By terminating the contract, reputational and legal risk was avoided.
Quality and compliance risks
The risk:
A supplier that does not meet quality standards or legal requirements can lead to product recalls, claims, or production interruptions.
The challenge:
Certifications expire, standards change, and discrepancies are often only discovered when it is already too late.
The added value of Altares:
By combining company information with compliance data, such as certification status and permits, Altares identifies discrepancies at an early stage.
Example:
A pharmaceutical company discovered through Altares that a raw materials supplier had allowed an essential certification to expire. By quickly switching to a certified supplier, it avoided a fine running into millions.
Dependency on single or sole suppliers
The risk:
If a single supplier is responsible for a crucial component, failure can immediately lead to a production stoppage.
The challenge:
Dependency is often hidden. Seemingly independent suppliers may be part of the same parent company.
The added value of Altares:
Using network and group structure analyses, Altares shows how suppliers are connected worldwide, enabling you to achieve true diversification.
Example:
A European manufacturer thought it had three independent suppliers for a critical component. Analysis revealed that they all belonged to the same holding company. By actively contracting new suppliers, the risk was drastically reduced.
Interesting read: Chain liability: avoid risks with insight into your supply chain
The red string: insight before things go wrong
The strength of Altares Dun & Bradstreet lies in its up-to-date data, global coverage, and automatic alerts. This gives you insight into supplier risks, rather than relying on moment-to-moment snapshots.
By integrating these insights into supplier and contract management systems, you shift from reactive action to proactive management. This delivers benefits in terms of continuity, cost control, compliance standards, and reputation.
Interesting read: Data-driven credit risk management
Conclusion
In a world where risks develop rapidly, the difference between success and crisis can be determined by having the right information at the right time. Altares Dun & Bradstreet offers you exactly that: insight, before things go wrong.
