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Bureau van Dijk - using information more efficiently in procurement
Technology can help procurement professionals use information more efficiently by: 1) Delivering external company and market data directly into existing procurement workflows and processes. 2) Providing this data to the right procurement professionals at the right time to enhance decision making. 3) Matching internal supplier records to external data sources to enrich profiles and monitor supplier risks and changes.
Bureau van Dijk - using information more efficiently in procurement
- 1. How can technologyhelp you use information more efficiently in your procurement processes? Tony Pringle Managing Director BvD UK & Ireland
- 3. Specialists in theprovision of company information… …delivered to enhance workflow and empower the end user
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- 8. Information “Getting information off the Internet is like taking a drink from a fire hydrant.” Mitchell Kapor
- 10. Information “Information is a source of learning. But unless it is organized, processed, and available to the right people in a format for decision making, it is a burden, not a benefit.” William Pollard
- 11. Procurement - What’sthe job? Genuine job descriptions... • “Design and implementation of innovative procurement processes, policies and solutions” • “Identification of pertinent new suppliers to ensure continued best-in-market service provision” • “Ensuring departmental contribution to group savings initiatives are realised (c.£2.4m commitment for delivery in 2012), whilst maintaining and improving quality of services and goods”
- 12. Procurement - What’sthe job? • Efficiency • Cost reduction • Managing Risk “Increase quality whilst reducing cost and avoiding risk”
- 13. What can datadeliver? Promoting best practice and improving efficiency • Adhering to the rules What % of a supplier’s revenue does our business represent? Are we buying from low risk businesses? Financial / Compliance • Leveraging existing relationships Are our suppliers part of a larger group we already buy from? Are my current suppliers able to service us in other areas?
- 14. What can datadeliver? Promoting best practice and improving efficiency • Helping in tendering and negotiations Identifying new alternative suppliers Benchmarking suppliers for profitability • ALERT me to strategic changes Acquisitions Negative financial trends / indicators
- 15. The data A goodunderstanding of data, its sources and the potential strengths and weaknesses are essential
- 16. Company data Quoted companies (shares available on open exchanges) • Everybody should do these well • Stock exchanges, annual reports posted on web sites • Often market research available to provide company profiles • Industry context • SWOT • Competitors • Forecasts
- 17. Company data Private company data Official bodies • UK - Companies House and the London and Edinburgh Gazettes • Germany – Handelsregisters, Bundesanzeige • France - greffe du tribunal de commerce ……etc Primary research • Direct requests to the companies
- 18. Companies house datarules Companies Act 2006 Accounts Exemption Thresholds for companies with accounting periods starting on or after 6th April 2008 Total audit exemption To qualify for total audit exemption, a company must: • Qualify as small • Have a turnover of not more than £6.5 million • Have a balance sheet total of not more than £3.26 million Small company To be a small company, at least two of the following conditions must be met: • Annual turnover must be £6.5 million or less • The balance sheet total must be £3.26 million or less • The average number of employees must be 50 or fewer Small group To qualify as small, a group of companies must meet at least two of the following conditions: • Aggregate turnover must be £6.5 million net (or £7.8 million gross) or less • The aggregate balance sheet total must be £3.26 million net (or £3.9 million gross) or less • The aggregate average number of employees must be 50 or fewer Medium companies etc….. http://www.companieshouse.gov.uk/about/gbhtml/gp2.shtml#ch7
- 19. Company data • US - Most US private companies are not required to file financial data at all - information providers will sometimes estimate a company’s revenue or sales • Europe - profit and loss - balance sheet - director details
- 20. China •no centralised 'CompaniesHouse', instead there are thousands of registration bureaux •Registration Bureaux do not provide any detailed information – in some cases only allow name, legal representative and status to be viewed by public (check if a company is still active – aim to prevent fake companies operating) •you can’t take copies or notes of papers in a company's file, and it is necessary to visit the relevant locations to view the files in the first place (and of course everything is in Chinese) •If companies don’t file they lose their registration – the extent to which this is enforced varies regionally
- 21. Company data • Asia - Varies country to country - Some official source and some has to be requested eg Japan - Taiwan • Africa, Middle East, South America - Improving all the time - Argentina - Brazil
- 22. Company data What's new on Orbis – September 2012 • There are now 101 million companies on Orbis • In the last month: • over 2.8 million company accounts have been updated • over 3.8 million new companies have been added • Brazil - nearly 2.8 million new companies • Israel - over 356,000 new companies • United States - over 133,000 new companies
- 23. Company data Other primary research • Verification process for contact data - “can you confirm that...” - Names, e-mails, turnover, employees • Enriching descriptive content -“other business services” (Companies House, SIC description) - “This company is engaged in the electronic publishing of company information and business intelligence. It was established in 1991 as a separate entity following a division of activities within Bureau Marcel van Dijk. …specialises in adding value to data to create easy- to-use, flexible and state-of-the-art solutions that allow users to manipulate information for research, financial analysis and marketing intelligence… serves a client base of approximately 5,000 businesses…” (Overview from BvD)
- 24. Matching internal toexternal data The process of connecting records from an internal system (such as a SRM) to a data provider’s unique reference number
- 25. Cloud computing allowsyou to access everything you need, from anywhere, on any computer. You can access this information without worrying if you have enough room for all of it, or where it is stored.
- 26. Bringing “live” datato you
- 27. Matching Accuracy of matching drives the benefits • As accurate as possible • BvD doesn’t get linked to Bureau van Dijk without human intervention • Engaging in the process is a wise investment
- 28. Matching - datamanagement • Removing businesses that are no longer trading • Identifying multiple records and consolidating • Replacing old content with new • Adding data points to existing records for richer content • Adding new records that look like your current suppliers
- 29. Matching - profiling Using third party software Segmentation – Size – Activity – Location – Risk “More like this”
- 31. Matching - monitoringand alerts • Changes in control (business ownership) • Recently resigned, or new, directors • New financial data • Increase in financial risk - Liquidation • Business critical news – Jobs – Contracts – Restructuring – Strategy
- 32. Using technology todeliver data “The goal is to transform data into information, and information into insight” Carly Fiorina (Executive and president of Hewlett-Packard Co. in 1999. Chairperson in 2000.
- 33. Using technology todeliver data Introduce valuable external content into existing work flows • process driven • delivering content to the right people…. …at the right time
Editor's Notes
- #2 (using external company data to enhance capabilities and improve performance)
- #20 Historically, there are two schools of thought which affect financial reporting. For the Netherlands, Denmark, UK and Ireland, part of the “Anglo-Saxon” group of countries, the goal is to provide existing or potential shareholders with a true and fair view of the company. Continental Europe is more focused on providing information for taxation and statistics, and to offer protection to credit grantors. Other factors affecting a country’s filing regulations and disparate display of financial information include: Economics – Fiscal policies, accounting rules, taxation Cultural difference – Some cultures do not adhere to the importance of deadlines or regulation Legal form of the company - Sole proprietorship, partnership, limited liability etc. Company size – small and medium size companies may be required to file less information One example of how fiscal policy affects filing is the taxation on profit requirement. For most of Continental Europe, companies tend to lower their profit with overestimated depreciation or bad debt provisions. This calculation of the fiscal profit is based on accounting rules. Yet in Anglo-Saxon countries, the taxation on profit is calculated separately and is independent from accounting practices. The difference between both calculation methods is itemized in “deferred taxation”, which is considered a debt on the balance sheet. The view of the profit and loss account is considered to be fair, as accounting and taxation are separated.
- #21 Seems to be quite open that not everyone will be able to cope with regulations
- #22 Historically, there are two schools of thought which affect financial reporting. For the Netherlands, Denmark, UK and Ireland, part of the “Anglo-Saxon” group of countries, the goal is to provide existing or potential shareholders with a true and fair view of the company. Continental Europe is more focused on providing information for taxation and statistics, and to offer protection to credit grantors. Other factors affecting a country’s filing regulations and disparate display of financial information include: Economics – Fiscal policies, accounting rules, taxation Cultural difference – Some cultures do not adhere to the importance of deadlines or regulation Legal form of the company - Sole proprietorship, partnership, limited liability etc. Company size – small and medium size companies may be required to file less information One example of how fiscal policy affects filing is the taxation on profit requirement. For most of Continental Europe, companies tend to lower their profit with overestimated depreciation or bad debt provisions. This calculation of the fiscal profit is based on accounting rules. Yet in Anglo-Saxon countries, the taxation on profit is calculated separately and is independent from accounting practices. The difference between both calculation methods is itemized in “deferred taxation”, which is considered a debt on the balance sheet. The view of the profit and loss account is considered to be fair, as accounting and taxation are separated.
- #23 Historically, there are two schools of thought which affect financial reporting. For the Netherlands, Denmark, UK and Ireland, part of the “Anglo-Saxon” group of countries, the goal is to provide existing or potential shareholders with a true and fair view of the company. Continental Europe is more focused on providing information for taxation and statistics, and to offer protection to credit grantors. Other factors affecting a country’s filing regulations and disparate display of financial information include: Economics – Fiscal policies, accounting rules, taxation Cultural difference – Some cultures do not adhere to the importance of deadlines or regulation Legal form of the company - Sole proprietorship, partnership, limited liability etc. Company size – small and medium size companies may be required to file less information One example of how fiscal policy affects filing is the taxation on profit requirement. For most of Continental Europe, companies tend to lower their profit with overestimated depreciation or bad debt provisions. This calculation of the fiscal profit is based on accounting rules. Yet in Anglo-Saxon countries, the taxation on profit is calculated separately and is independent from accounting practices. The difference between both calculation methods is itemized in “deferred taxation”, which is considered a debt on the balance sheet. The view of the profit and loss account is considered to be fair, as accounting and taxation are separated.
- #25 There is nothing more frightening in the world of marketing then having to use data whose accuracy relies solely on sales people