D&B Supplier Evaluation Risk Rating

The D&B US Supplier Evaluation Risk Rating (SER Rating) predicts the likelihood that a supplier will cease business operations or become inactive over the next 12 month period based on the depth of predictive data attributes available on the business.

Requirements & Options

When requesting this D&B Direct product, a valid D-U-N-S Number for a company, a country code of "US" and the appropriate product code will be required. If this information is not available, refer to obtaining a company D-U-N-S Number for assistance. A trade up option exists to request data for the headquarters when the requested organization is a branch.

NOTE: The product code for D&B Supplier Evaluation Risk Rating is SER. This product may be included in the Monitoring process.

NOTE: Effective September 12, 2014, this product will accept requests for the following countries: Austria, Belgium, Canada, Czech Republic, Denmark, France, Germany, Hong Kong, Hungary, Ireland/Southern Ireland, Italy, Japan, Netherlands, Norway, Poland, Portugal, Slovakia, Spain, Sweden, Switzerland, Taiwan, and the United Kingdom.

The SER score is available for additional countries as part of the Predictive Bankruptcy & Payment Risk data layer.

Business Elements

The following table is an alphabetical list of the unique items delivered in this data layer. Legend: [C] = may be included in a Custom Data product; [M] = may be referenced by the Monitoring process; [M+] = Monitored using an aggregate or attribute XPath.

NOTE: This product will return a set of standard elements (e.g. D-U-N-S Number, Organization Name, Trade Styles, Family Tree Role, Primary Address, Mailing Address, Telephone Number, Fax Number, et al.) along with the business elements listed. In addition, customers who compare the following table to the Data Primer should be advised of several intentional differences.

Name Description XML* JSON*
Supplier Evaluation Risk Commentary Text that records comments about the Supplier Evaluation Risk Score of this organization [C] [M+] SOAP REST
Supplier Evaluation Risk Score A numeric value that predicts the likelihood that the supplier will have financial stress. It is typically derived by running data on this organization through an algorithm that has been proven to be predictive based on statistical analysis. [C] [M+] SOAP REST

*The links in this column provide the technical characteristics for the data field of the respective business element in the XML or JSON response.

The preceding list is not presented in the order, nor manner, in which the information is packaged and delivered via the D&B Direct API.

While data for a particular company may not contain values for all of the business elements, there may be items that are considered by D&B to be essential to yield the maximum benefit of a data layer. If any of these essential elements do not contain a value for a particular company, an error code will be returned, and your organization will not incur a usage credit for the request.

The Product Availability Lookup feature may be utilized to determine if this D&B Direct product is available for a given D-U-N-S Number.

The availability of certain scores delivered by this product may be limited due to a lack of sufficient company or industry specific data to perform the calculations.

Additional Details

The SER Rating ranges from 1 to 9, with 1 representing least likelihood of ceasing operations or becoming inactive and 9 representing highest likelihood of ceasing operations or becoming inactive.

The following Projected Performance Tables are based on a representative sample. Actual performance may vary based on individual supplier portfolios.

Projected Performance Table - Individual Score Range

SER Rating % of Businesses in D&B Supplier Database (Approx) Projected Bad Rate % of Bads Identified (Approx)
1 13% 1.28% 3%
2 15% 2.14% 6%
3 12% 3.06% 7%
4 13% 3.74% 9%
5 18% 5.37% 17%
6 11% 8.02% 15%
7 3% 9.27% 6%
8 12% 12.96% 26%
9 3% 21.05% 11%

Each SER Rating has a “bad” rate that can be compared with the average.

For example, the table above shows that 21.05% of all companies scoring a 9 in 2012 are projected to go out of business, become inactive or file for bankruptcy. What this means is that businesses with a SER of 9 are approximately 4 times (21.05/5.63 = 3.73) more likely to become inactive or go out of business than the average. Similarly, businesses with a SER of 1 are 4 times (5.63/1.28 = 4.39) are less likely than the average.

Projected Performance Table - Cumulative Score Range

SER Rating % of Businesses in D&B Supplier Database (Approx) Projected Bad Rate % of Bads Identified (Approx)
1-9 100% 5.63% 100%
2-9 87% 6.28% 97%
3-9 72% 7.15% 91%
4-9 60% 7.99% 85%
5-9 47% 9.17% 76%
6-9 29% 11.49% 59%
7-9 18% 13.59% 44%
8-9 15% 14.63% 38%
9 3% 21.05% 11%

In order to set monitoring thresholds, it is useful to display the cumulative projected performance table, ranking businesses from highest risk to lowest risk. To use the cumulative projected performance table shown above, select the appropriate SER Rating cutoff that yields the desired OOB Rate, Capture Rate (% of OOBs or inactive identified), or volume for reviewing/monitoring suppliers.

For example, a supply monitoring policy that requires monitoring of businesses with a SER Rating of 9 would include approximately 3% of your supply base and capture approximately 11% of all suppliers that will cease operations or become inactive over the next 12 months.

For users who have the resources to monitor a greater percentage of suppliers in order to proactively avoid more supply chain disruptions, they may choose to monitor suppliers with SER Ratings 8 or 9. Based on the expected results shown in the Cumulative Projected Performance Table above, you would be monitoring approximately 15% of your supply base and capturing approximately 38% of all “bad” suppliers.

Key Business Commentaries

Commentary Text Code
Age of financial statement reported 26162
Business does not own facilities 26161
Change in net worth 26156
Commercial Building Ownership Status Unavailable 26159
Actual employee figure not reported 26181
Evidence of open judgments 19803
Evidence of open liens 19802
Evidence of open liens, and judgments 19800
Evidence of open suits 19801
Evidence of open suits and judgments 19798
Evidence of open suits and liens 19799
Evidence of open suits, liens, and judgments 19797
Financial ratios 26148
Financial Statements not reported 26085
Higher risk industry based on inactive rate for this industry 26158
Higher risk region based on inactive rate for this region 26147
Historical information on the business or principals not Reported 26155
Limited financial information reported 26154
Limited number of payment experiences reported 26153
Limited time in business 19804
Limited time under present management control 19812
Net Worth 26152
Limited business activity signals reported in the past 12 months 26165
No telephone response 26151
Paydex 26178
Phone number not reported 26150
Proportion of past due balances to total amount owing 26173
Proportion of slow payment experiences to total number of payment experiences reported 26172
Recent high balance past due 26082
Actual sales figure not reported 26180
Special Event in the D&B Report 20073
Time since information update 26149
Variable Paydex over last 12 months 26164
No payment experiences reported 26094
Indication of open bankruptcy 26216
UCC filings reported 19817

This product is only available for organizations domiciled in the United States. If the trade up option was selected, and the headquarters is domiciled in another country, an error may be returned depending on the scope of the particular database being accessed by the product request.

Access to this information is provided on a metered basis; and will require data layer entitlement prior to use in the production environment. A built-in feature exists to prevent duplicate billing when multiple requests with the same D-U-N-S Number and product code are submitted on the same calendar day (which is based on Eastern Standard Time [GMT-5]).

An option exists to retain the results from all successful requests for this product in a Product Request Archive, which may be retrieved without incurring additional usage charges.

Related Topics

Predictive Bankruptcy & Payment Risk

Technical Specification

For details on how to obtain this data layer, please refer to the Assessment.OrderProduct (SOAP) or Assessment.OrderProduct (REST) page.

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