May 17, 2020

CASE STUDY: Fraikin adopts cloud-based Tinubu Risk Management Center

Supply Chain Digital
Supply Chain Technology
Supply Chain
Freddie Pierce
3 min
Truck rental firm's new risk management unit
The customer Fraikin is a European leader in the rental of industrial and commercial vehicles, providing solutions for long and short-term leasing, fle...

The customer

Fraikin is a European leader in the rental of industrial and commercial vehicles, providing solutions for long and short-term leasing, fleet management and rentals with drivers. The company offers a complete service– one-stop solutions–for heavy goods, refrigerated, semi- trailer and other hydraulic vehicle hire. With a network of 200 branches, it serves more than 10,000 customers in 10 countries within Europe and North Africa, generating revenues of approximately €700 million and employs more than 3,200 people.

The challenge

On the strength of changes to its business model (based on long-term contracts) and market constraints, Fraikin restructured its financial services by creating a risk management unit. Fraikin wanted to establish a recommendation and workflow system that would transfer risk assessment to all business stakeholders.

In 2012, the company wanted to dispense with credit insurance and it set up a more precise system for monitoring its customers, particularly those with a large commitment.

“It was no longer sensible to continue with an inadequate and expensive system of credit insurance” says Didier Mathou, Chief Financial Officer France, Fraikin.

The challenge was to find a solution to support new credit risk management policy and process across company locations.

The solution

Fraikin consulted extensively with major credit insurers and credit management vendors to study existing solutions, the quality of information available and the ease of integrating solutions into Fraikin’s existing business processes. Following this consultation and after evaluating a short-list of potential vendors, Tinubu Square proved best able to handle the specifics related to Fraikin’s business and credit risk management objectives with the cloud-based Tinubu Risk Management Center (RMC SaaS). Tinubu RMC was assessed to be reliable, friendly and quick to implement at a very favourable project time and cost. Due in part to the prior collaboration between the two companies (since 2004), the deployment of Tinubu RMC required only a few weeks.

The benefits

To meet Fraikin’s requirements, Tinubu Square set up its Risk Management Center platform that makes it possible to cross-check different databases and to provide sales people with a personalised recommendation.

The workflow developed when the risk management policy was overhauled. This gave the sales team the opportunity to formulate their requirements as precisely as possible (type of vehicle, age, number, hire cost, characteristics, etc.) and to request the most suitable lines of coverage.

Tinubu RMC provides business stakeholders with better qualification of customer contracts and selling recommendations. The new system and policy implemented through Tinubu Square accelerates the decision-making process about customers and facilitates easy information sharing from branch locations with the company’s Group Credit Committee in Paris.

Agencies can now, if all conditions are met, give an instant response to their customers and regional branches have greater freedom to make decisions. What previously took days can now be managed in a few seconds.

The quality of the data provided by Tinubu RMC and its ease of use quickly won the support of all users.

“RMC is no longer a topic of discussion because it is used by everyone; all are convinced it’s a quality too,” said Mathou.

Tinubu Square has been integrated into the internal system to such an extent that, every quarter, the editor analysts now join up with Fraikin’s credit steering committee to decide on the largest projects and discuss any commitments to be made.

In this period of economic uncertainty, the RMC is playing an essential role: the platform enables customers’ situations to be assessed in real time and particular attention is paid to the largest commitments. “The level of information about each customer being entered into the RMC has become systematic and exhaustive,” says Arnaud Hillaire, Credit Manager France.

Moreover, by using the RMC, management has access to real time analysis of Fraikin’s exposure with respect to an agency or a number of agencies, or to an entity or a group.

“The financial information and very detailed monitoring made available by Tinubu Square gives undeniable legitimacy to our credit risk policy,” concludes Arnaud Hillaire.

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Jun 9, 2021

Biden establishes Supply Chain Disruptions Task Force

supplychain
Supplychainriskmanagement
Procurement
Biden
3 min
US government lays out plans for supply chain transformation following results of the supply chain review ordered by President Biden in February

The US government is to establish a new body with the express purpose of addressing imbalances and other supply chain concerns highlighted in a review of the sector, ordered by President Joe Biden shortly after his inauguration. 

The Supply Chain Disruptions Task Force will “focus on areas where a mismatch between supply and demand has been evident,” the White House said. The division will be headed up by the Secretaries of Commerce, Transportation, and Agriculture, and will focus on housing construction, transportation, agriculture and food, and semiconductors - a drastic shortage of which has hit some of the US economy’s biggest industries in consumer technology and vehicle manufacturing. 

“The Task Force will bring the full capacity of the federal government to address near-term supply/demand mismatches. It will convene stakeholders to diagnose problems and surface solutions - large and small, public or private - that could help alleviate bottlenecks and supply constraints,” the White House said. 

In late February, President Biden ordered a 100 day review of the supply chain across the key areas of medicine, raw materials and agriculture, the findings of which were released this week. While the COVID-19 health crisis had a deleterious effect on the nation’s supply chain, the published assessment of findings says the root cause runs much deeper. The review concludes that “decades of underinvestment”, alongside public policy choices that favour quarterly results and short-term solutions, have left the system “fragile”. 

In response, the administration aims to address four key issues head on, strengthening its position in health and medicine, sustainable and alternative energy, critical mineral mining and processing, and computer chips. 

Support domestic production of critical medicines

 

  • A syndicate of public and private entities will jointly work towards manufacturing and onshoring of essential medical suppliers, beginning with a list of 50-100 “critical drugs” defined by the Food and Drug Administration. 
  • The consortium will be led by the Department of Health and Human Services, which will commit an initial $60m towards the development of a “novel platform technologies to increase domestic manufacturing capacity for API”. 
  • The aim is to increase domestic production and reduce the reliance upon global supply chains, particularly with regards to medications in short supply.


Secure an end-to-end domestic supply chain for advanced batteries

 

  • The Department of Energy will publish a ‘National Blueprint for Lithium Batteries’, beginning a 10 year plan to "develop a domestic lithium battery supply chain that combats the climate crisis by creating good-paying clean energy jobs across America”. 
  • The effort will leverage billions in funding “to finance key strategic areas of development and fill deficits in the domestic supply chain capacity”. 


Invest in sustainable domestic and international production and processing of critical minerals

 

  • An interdepartmental group will be established by the Department of Interior to identify sites where critical minerals can be produced and processed within US borders. It will collaborate with businesses, states, tribal nations and stockholders to “expand sustainable, responsible critical minerals production and processing in the United States”. 
  • The group will also identify where regulations may need to be updated to ensure new mining and processing “meets strong standards”.


Partner with industry, allies, and partners to address semiconductor shortages

 

  • The Department of Commerce will increase its partnership with industry to support further investment in R&D and production of semiconductor chips. The White House says its aim will be to “facilitate information flow between semiconductor producers and suppliers and end-users”, improving transparency and data sharing. 
  • Enhanced relationships with foreign allies, including Japan and South Korea will also be strengthened with the express proposed of increasing chip output, promoting further investment in the sector and “to promote fair semiconductor chip allocations”. 
     

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