Lendlease are an international property development and infrastructure company that contracts hundreds of suppliers to help construct, refurbish and manage landmark projects.
Global real estate developers like Lendlease depend on a complex supply chain. Every link must be strong. Every supplier needs to be a well-run business. Any financial issues must be identified and acted on fast. That means confirming the financial health of existing and potential suppliers and subcontractors. All data has to be accurate, accessible, and as current as possible. Working with yesterday’s information can mean serious problems tomorrow.
Managing a large ecosystems of suppliers
Development projects are complex and rely on a large ecosystem of up to 200 suppliers and subcontractors. If just one fails it can have a knock-on effect delaying the project and potentially causing reputational damage for Lendlease and its client. Up until recently, understanding the financial health of every supplier has been a complex and time-consuming business and with data often months out of date its reliability was questionable.
The challenge was not just about obtaining accurate financial data. It was also about integrating it in one place, and creating a single view or dashboard that was easy to use - not just for the procurement team, but the wider community of accountants and commercial managers within the organisation. What Lendlease wanted to do was build a single Supply Chain Information Portal, SCIP, which integrated multiple information sources including due diligence financial data.
Assessing financial stability with the DueDil API
DueDil’s API allows Lendlease to easily assess the financial stability of a supplier. Portal information, enriched by DueDil financial insights which are continuously being updated, gives a clear, current picture of the supply chain ecosystem’s financial health. More than supplier profiles in isolation, it shows which companies are bidding on Lendlease projects, their relative exposures, and the degree of potential risk each one poses.
Overall, SCIP gained instant uptake by the Lendlease procurement team. Thanks to DueDil’s API and flexible approach, integration was fast and the benefits were quickly realised. The initial business case identified savings of 3-4 man days per project, but these were later doubled.
Adopting the DueDil API beyond procurement
DueDil’s API was rapidly adopted by Commercial Managers handling bids for future projects, enabling procurement to see what new projects current contractors were bidding on and use this as leverage during negotiations for future business.
The new system helped produce a due diligence report that previously took three working weeks in just one hour. The time saved is spectacular. Managers can track suppliers’ financial profiles at a glance with up-to-date insights and when it needs to be refreshed it’s simply a case of clicking a button to pull through live information and get updates in a matter of seconds.
The final decision, in a selection process that may have started a year ago, is based on the most current information, rather than data that is 6 months – or even 6 weeks – old.