French multi-national personal care company takes care of customer’s risk portfolio

D&B solutions helped the company assess their distributors through various metrics like financial health, operational capacity and market positions. This helped the company make informed decisions and foster strong partnerships.

Challenges faced by the client

The client needed help in evaluating the distributors on key factors such as financial health, operational capacity and market position. This comprehensive evaluation would help them with a clear understating of their current standing, allowing us to identify risks, uncover opportunities and recommend areas of improvement to support effective decision marking and foster strong, sustainable partnerships.

Internal challenges

Internally, the organization faces the challenge of establishing a standardized, data-driven framework to evaluate distributors across all segments. This includes aligning cross-functional teams, integrating disparate data sources, and ensuring consistent assessment of financial health, operational capacity, and market position. Without a unified approach, decision-making may be fragmented, potentially leading to missed risks or overlooked opportunities.

External challenges

Externally, navigating the variability in distributor transparency, data availability, and market dynamics. Distributors may differ significantly in their financial reporting practices, operational maturity, and competitive positioning, making it difficult to apply a one-size-fits-all evaluation. Additionally, evolving market conditions and regulatory environments can further complicate risk assessments.

How D&B helped?

D&B played a pivotal role in enabling Loreal to evaluate distributor credit risk effectively by leveraging its vast global database of corporate and non-corporate entities. Through detailed insights into financial health, GST compliance, litigation history, and affiliations with politically exposed persons (PEPs), D&B helped set appropriate credit limits, safeguard its reputation, and ensure regulatory compliance. Additionally, physical verification of distributor addresses added a layer of operational assurance, supporting informed decision-making and fostering resilient, trustworthy partnerships.

Key learnings

• Optimized Credit Risk Management
• Enhanced Compliance and Tax Efficiency
• Reputational and Risk Safeguard