SOUTHFIELD, Mich.--(BUSINESS WIRE)--Alderney Advisors LLC today announced the launch of Alderney Scorecard™, a unique analytical tool designed to proactively assess and track the health of a company’s supply base. Designed to assist mainly automotive clients, the Alderney Scorecard™ can be applied to virtually any manufacturing industry segment with a critical need for supply chain transparency.
“This is something we’ve worked on and developed in response to automotive clients who expressed the need for a standardized measurement tool to assess the financial health of existing as well as potential new suppliers,” explained Alicia Masse, Managing Director and Co-Founder, Alderney Advisors.
The Alderney Scorecard™ assesses five key financial metrics and incorporates a proprietary algorithm to assign a financial health score to a subject company. This score serves as both a snapshot of financial health at a point in time, as well as a tool that can be used to track effectiveness of any corrective measures taken.
Managing supplier risk continues to grow in importance
Regular monitoring of supplier financial health is a key element in mitigating client risk from supplier failure, the cost of which can be very high. Managing supply chain risk has long been critical for all manufacturers but it’s been of special importance to those in the automotive industry, and that importance is increasing.
Vehicles have grown in complexity and with that growth, the role of suppliers and their involvement in OEM engineering, production processes and vehicle launches has also grown. Participants in a study by MIT Forum for Supply Chain Innovation and PwC said that: dependencies between supply-chain entities have increased; changes in the supply chain network are occurring more frequently; and at the same time new product launches are more frequent. More variables bring more risk.
Advisor’s experience and direct involvement are key differentiators
Alderney’s professionals have more than 50 years of combined experience in the automotive industry, both in-house and as advisors to global OEMs and suppliers. Alderney’s expertise in helping clients across the globe navigate through challenging supplier matters uniquely positions the firm to assess supplier financial health and predictive signs of stress or distress, Masse explained.
Drawing on that experience, the Alderney team set out to develop a tool that combined data-driven insight and a user-friendly format that is easy to understand.
“We’ve achieved that,” said Masse. A key automotive client is presently using the Alderney Scorecard™ to assess and monitor its entire global supply chain, she added. “Client response has been very positive.”
Another unique feature of the Alderney Scorecard™ is the direct involvement and interaction of a seasoned Alderney professional with the subject company. An Alderney professional reviews the financial score and provides commentary about the main elements of the algorithm that drive the score.
It’s an important differentiator that ensures understanding and reasonable accuracy of the financial data provided and more importantly, how it can best be used. The direct involvement of the Alderney team brings unique perspective and insights that are tailored to the risks and challenges a client might face.
“We think it’s critical for us to have a personal touch and hands-on involvement to ensure Alderney Scorecard™ clients fully understand the score and the insights it can provide,” said Greg Coppola, Managing Director and Co-Founder, Alderney Advisors. “We are very excited about the launch of Alderney Scorecard™ as it provides our clients with a turnkey service to support their critical risk mitigation activities.”
About Alderney Advisors LLC
Alderney Advisors LLC is a business advisory firm providing uniquely valuable expertise in the areas of management consulting, supply risk management, interim management, debtor representation, creditor representation, due diligence and litigation support. For more information about Alderney Advisors, visit www.alderneyadvisors.com.