Dun and Bradstreet: What It Is, How It Works, and Examples
Summary:
Dun & Bradstreet (D&B) is a global leader in providing business intelligence, risk management, and analytics solutions. Their proprietary software, extensive Data Cloud, and DUNS numbering system support businesses worldwide, facilitating better decision-making and risk mitigation. This comprehensive guide delves into D&B’s history, services, and the unique value it brings to small and large businesses alike. Learn about its evolution, the importance of its Data Universal Numbering System, and its cutting-edge products for credit and risk assessment.
The core of Dun & Bradstreet’s business
Business intelligence and analytics
Dun & Bradstreet’s primary focus is business intelligence, providing companies with valuable insights through proprietary analytics tools and services. Businesses rely on these insights to make informed decisions, manage risks, and uncover opportunities. D&B’s products empower businesses in areas such as finance, procurement, compliance, sales, and marketing. From credit scores to financial statements, the data D&B provides is crucial for understanding market conditions and evaluating partners and competitors.
DUNSRight® Quality Process
At the core of D&B’s analytics is its proprietary DUNSRight® Quality Process, a system designed to ensure that the data clients receive is accurate, comprehensive, and timely. This process involves rigorous data cleansing and validation, making sure that the information used in decision-making is dependable. The DUNSRight® system also includes advanced algorithms that analyze global data, ensuring businesses can trust the credit ratings, financial assessments, and other insights provided by D&B.
The Data Cloud
D&B’s Data Cloud offers a massive, interconnected global database that contains detailed information on millions of businesses. It compiles financial records, legal filings, credit scores, payment histories, ownership structures, and more. With D&B’s cloud infrastructure, businesses can access this vast pool of data, giving them a competitive edge when analyzing market conditions or vetting potential partners.
What is a DUNS number?
Understanding the DUNS system
The Data Universal Numbering System (DUNS) is a proprietary system developed by D&B in 1963. It assigns a unique nine-digit identifier to every business in its database. These numbers facilitate better organization, classification, and identification of businesses, allowing for a seamless exchange of information across D&B’s global network.
The importance of DUNS for business credit
A DUNS number is an essential tool for tracking a company’s creditworthiness. It is used by businesses, governments, and lenders to evaluate potential partnerships and assess credit risk. A DUNS number is often a prerequisite for businesses applying for government contracts or partnerships with larger firms. Since D&B’s credit ratings are based on DUNS data, this number plays a vital role in the global economy.
How to obtain a DUNS number
Businesses can apply for a DUNS number online through Dun & Bradstreet’s website. Once assigned, the business can use this unique identifier to establish a credit profile, access business insights, and unlock opportunities for partnerships, contracts, and financing.
The history of Dun & Bradstreet
The early days: Lewis Tappan and the Mercantile Agency
Dun & Bradstreet traces its roots back to 1841 when Lewis Tappan founded the Mercantile Agency in New York City. Tappan, a successful businessman and abolitionist, recognized the need for a system that would allow merchants to assess the creditworthiness of potential clients. His agency became the first of its kind, providing detailed financial information and helping businesses avoid bad debts.
The emergence of R.G. Dun & Co.
In 1859, Robert Graham Dun purchased the Mercantile Agency, renaming it R.G. Dun & Co. Under Dun’s leadership, the company expanded its operations across the U.S., providing credit reporting services to merchants, manufacturers, and financial institutions.
John Bradstreet and the rise of credit ratings
Meanwhile, John Bradstreet established the Bradstreet Co. in Cincinnati in 1849. His firm introduced the concept of commercial ratings, which were used to assess a company’s financial stability and creditworthiness. Bradstreet’s ratings quickly gained popularity, and in 1851, he published the first book of commercial ratings, solidifying his company’s role in credit assessment.
The historic merger
In 1933, R.G. Dun & Co. and Bradstreet Co. merged, creating what we now know as Dun & Bradstreet. This merger brought together the strengths of both companies, combining Dun’s extensive database with Bradstreet’s innovative credit ratings. The new company quickly became a dominant force in the industry, offering unparalleled insight into the financial health of businesses across the globe.
Pros and cons of using Dun & Bradstreet
D&B’s modern era
Going public and private
Dun & Bradstreet underwent significant changes in the 21st century. After decades of growth and acquisitions, D&B was taken private in 2019, only to relist on the New York Stock Exchange (NYSE) under the ticker symbol DNB in 2020. This relisting allowed D&B to expand its operations, strengthen its market position, and invest in new technologies to enhance its data and analytics capabilities.
Acquisitions and expansion
Over the years, D&B has acquired numerous companies to expand its offerings. Notably, in 2021, it acquired Bisnode, a European data and analytics firm, in a deal that strengthened its global presence. Later that same year, D&B acquired Eyeota and NetWise, two companies specializing in audience solutions for digital marketing. These acquisitions highlight D&B’s commitment to expanding its product suite and staying at the forefront of data-driven marketing and business analytics.
Key products and services
Credit risk solutions
Dun & Bradstreet offers a range of credit risk solutions designed to help businesses evaluate the creditworthiness of potential partners and clients. These solutions provide detailed financial data, credit scores, and payment histories, allowing businesses to make informed decisions and minimize risk.
Third-party risk management
D&B’s third-party risk management solutions enable companies to assess and manage the risks associated with suppliers, contractors, and other third parties. These solutions provide insights into a company’s financial health, regulatory compliance, and overall risk profile, helping businesses mitigate potential risks in their supply chains.
Marketing and sales solutions
In addition to risk management, D&B offers a suite of marketing and sales solutions that help businesses identify new customers, track market trends, and optimize their sales strategies. Using D&B’s Data Cloud, businesses can access detailed information about potential clients, enabling more targeted and effective marketing campaigns.
Conclusion
Dun & Bradstreet has been a cornerstone of business intelligence and risk management for nearly two centuries. With its powerful analytics tools, vast Data Cloud, and DUNS numbering system, D&B provides essential services that enable businesses to grow, manage risks, and improve decision-making. Whether it’s assessing creditworthiness, optimizing sales strategies, or navigating complex supply chains, D&B’s products are integral to modern business success.
Frequently asked questions
What services does Dun & Bradstreet offer to small businesses?
Dun & Bradstreet provides a range of services to small businesses, including credit risk assessments, business credit reports, and marketing insights. Small businesses can use D&B’s Data Cloud to assess potential partners or vendors and improve their chances of securing financing by building a strong credit profile using a DUNS number.
How does Dun & Bradstreet help with business credit scores?
D&B helps businesses build and track their credit scores through its comprehensive data collection and analysis. The company collects information such as payment histories, financial statements, and public records, which it uses to generate a D&B Rating and a PAYDEX score. These scores indicate a business’s creditworthiness and financial stability.
Can businesses update their own information in the D&B database?
Yes, businesses can update their information in the D&B database. Dun & Bradstreet offers a service called DUNS Manager, which allows companies to manage and update their business data. Keeping this information current is essential for maintaining an accurate credit profile and improving visibility to potential partners and creditors.
Is Dun & Bradstreet’s data used by government agencies?
Yes, many government agencies, including the U.S. government, use Dun & Bradstreet’s data when assessing contractors for projects. The DUNS number is often required for companies that wish to bid on government contracts, as it provides detailed business insights and helps assess the financial health and risk of the bidding companies.
What are the main industries that rely on Dun & Bradstreet’s services?
Dun & Bradstreet serves a wide array of industries, including finance, manufacturing, technology, and government sectors. Its business intelligence, credit risk, and marketing solutions are utilized by large corporations, small businesses, and public sector entities worldwide to make informed decisions, mitigate risks, and optimize business processes.
How long does it take to receive a DUNS number?
The process to receive a DUNS number can vary depending on the location and whether the business opts for the expedited service. Generally, it takes 30 days for businesses to receive their DUNS number through the standard process, but there is an option to expedite the request and obtain it within five business days for a fee.
Key takeaways
- Dun & Bradstreet is a global leader in business intelligence and analytics.
- The DUNS number is a unique identifier that tracks business creditworthiness globally.
- D&B offers solutions for credit risk management, marketing, and third-party risk assessment.
- The company’s Data Cloud contains information on over 420 million businesses.
- D&B continues to expand through acquisitions, enhancing its product offerings and global presence.
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