Hansgrohe mixers and showers are used all over the world. New suppliers are added to the network every day. In order to prevent supplier failures, the long-established company with headquarters in Germany relies on D&B Finance Analytics from Dun & Bradstreet for its risk assessment.
From China to the USA to Europe: Hansgrohe’s global network is growing daily. The fittings manufacturer’s suppliers come from the metals industry, the electrical sector and the service sector with operations around the world.
"To keep Hansgrohe’s operations running, it is essential for us that our suppliers do not fail. That's why we closely monitor the financial data of our most important suppliers," says Sebastian Broß, Team Leader Risk Management at Hansgrohe.
Monitoring financial data from 400 suppliers
Broß' team uses D&B Finance Analytics from Dun & Bradstreet to monitor more than 400 suppliers. The goal: to always have an eye on the most important key figures of the business partners in order to be able to react at an early stage before a supplier fails.
"In the past, we called up a report with financial data from our suppliers maybe at best once a year. With D&B Finance Analytics, we have found a solution that allows us to see at a glance, already in the dashboard, which of our suppliers represent a particularly high risk. In addition, we receive a notification by email if the D&B score or the payment behaviour of a customer changes," says Broß.
Close exchange between Risk Manager and Purchasing
And this is how it works in practice: if the payment index or the D&B Score falls below a certain value, the responsible employees receive a notification by e-mail. The message goes directly to the Risk Manager and the responsible colleague in Purchasing. "We look at the case together and if necessary we approach the supplier to find out what the problem is," Broß explains.
Sometimes problems arise due to restructuring at the supplier. Sometimes a change in management is the reason. In such cases, we enter into a close exchange with our suppliers to accompany ongoing developments.
D&B score and payment index as most important key figures
Broß and his team use the D&B Score and the Payment Index from Dun & Bradstreet to assess suppliers. “The payment index shows how reliably a supplier pays its invoices. If there are any anomalies here, it is important for us to know what the problem is so that we can assess possible consequences for our business and proactively approach the business partner.”
What Broß particularly likes about the reports in D&B Finance Analytics is the summary at the top. The vital key figures are presented in a condensed form at a glance. The pie chart in the dashboard also allows a look at which suppliers have the highest risk.
"We wanted greater transparency and the certainty that we are continuing to develop strategic partnerships with the right suppliers. D&B Finance Analytics allows us to do just that," says Broß.
About the Hansgrohe Group
With its brands AXOR and hansgrohe, the Hansgrohe Group, headquartered in Schiltach/Baden-Württemberg, is a leading company in the bathroom and kitchen industry in terms of innovation, design and quality. With its mixers, showers and shower systems, the company, founded in 1901 in the Black Forest, gives water form and function. With 34 companies, 20 sales offices and distribution in 152 countries, the globally active company in the sanitation industry is a reliable partner for its customers in all regions of the world. The Hansgrohe Group, its brands and products have received numerous awards, including over 700 design prizes since 1974. The Hansgrohe Group guarantees its high quality standards through production at seven of its own production sites, four of which are located in Germany and one each in France, the USA and China.