Supply Chain Resilience
At Teneo we combine expert financial restructuring skills with deep sector knowledge to deliver critical insights into the financial health of your counterparties.
Supply chain resilience has been a hot topic for most corporate boards over the last 18 months. The pandemic has brought into stark focus the vulnerability of businesses which rely on third parties to enable smooth functioning of their operations, whether that be through a supply chain, route to market or even a strategic partnership.
For some, it has also highlighted the need for greater visibility over what businesses are supplying critical goods or services and where these businesses are located. These key counterparties can often be overlooked and deeply rooted in the supply chain as tier 3 or tier 4 suppliers.
At Teneo we draw on our experience of having worked with a range of businesses in financial distress, across a variety of sectors, to spot early signs of underperformance and quickly take action to protect your value chain. We deploy situational skills focused on:
- Optimising supplier payment profiles to strengthen your working capital cycle.
- Understanding a critical counterparty’s financial position and the implications for your business.
- Supporting stakeholder negotiations where a supplier is at risk, to implement mitigating actions that minimize business disruption and brand damage.
Latest Financial Advisory Insights
Our approach is split across four distinct areas; Assess, Monitor, Intervene and Optimise. Our aim is to increase your understanding of the financial health of the underlying businesses to which you are exposed and supporting you with the skills and resources necessary to mitigate disruption and loss.
Do you understand where the business is reliant on third party suppliers to deliver critical goods and services? What does the business really value and want to protect?
Initial supplier resilience assessment
Not every supplier is going to become distressed, nor is every distressed counterparty going to have a material impact on your business.
It is therefore critical that you can create a clear priority map that (i) focuses on understanding the impact of those suppliers counterparties that are likely to create the biggest disruption and loss and (ii) ensures sufficient diligence is carried out to understand the risks facing these counterparties.
Contingency planning to build supply chain resilience
For critical suppliers, we support putting clear continuity plans in place and will work with legal teams to ensure that appropriate contractual protections are in place.
Do you really understand the current financial health of your counterparties?
Financial health reviews
Harnessing quality and timely data to actively monitor your counterparty risk will be critical in staying ‘one step ahead’ of potential weaknesses in the resilience of the tenancy base and company portfolio.
We can engage directly with your counterparty network to conduct financial health checks to support decisions, shape strategies and perform interim health assessments.
Do you have the necessary skills and resources to respond if your supply chain is threatened with the risk of failure?
Where a critical third-party supplier counterparty is considered to be at risk of failure, we can mobilise experienced, professional restructuring specialists within 24 hours, leveraging our sector experts to quickly assess viability and options, identify a preferred action plan and lead effective engagement with stakeholders to minimize disruption.
Is your supply chain functioning in an optimal manner?
Do you have visibility to negotiate with suppliers and sustainably improve your working capital position?
Can you strengthen your company’s resilience through improving working capital cycles and releasing tied up cash?
We can analyse your process across your Procure-to-Pay cycle, including identifying any inefficiencies in how this is executed in practice. This will include assessing invoice level data across payment history, terms, invoicing dates, etc. to highlight opportunities to improve your working capital cycle.
Once we have concluded a short, fact based, diagnostic phase to identify improvement opportunities we would look to enter an implementation phase to support you in enacting the improvement opportunities. We would address the areas for improvement in supplier terms and seek to optimise the relationship in a transparent manner.
Robin Hood Energy
Robin Hood Energy was a subsidiary of the Nottingham City Council and a gas and electric provider with 220,000 customers that had been loss making for a number of years. We were appointed to support the Directors and undertake the best restructuring for creditors.
Our cross-service line team provided M&A, tax, restructuring and employment advice to deliver a sale of the customer book which generated more value than a Supplier of Last Resort (SoLR) procedure and will result in a better return to creditors.
Following transition of the customer book, the business was placed into Administration.
A major global consumer goods company became aware that a key UK trading partner was in severe financial distress and at risk of insolvency. Immediate insolvency would have resulted in serious operational disruption and financial losses.
Mobilized a team to ensure the client was negotiation with other stakeholders and then supporting its interests throughout restructuring talks with the trading partners. This included discussion of new financing to stabilize the trading partner, monitoring the short-term cash performance of the business and contingency planning for a failure of the business.
Our work supporting the attempted restructuring resulted in an extended period of stability, allowing enough time for the client to put an alternative delivery model in place.
Details of the entity providing services, legal and regulatory information in respect of the Teneo entity are also included in our engagement letters.
Teneo Financial Advisory (DIFC) Limited is authorised and regulated by the Dubai Financial Services Authority for the provision of Advising on Financial Products or Credit and Arranging Credit or Deals in Investment services
Specific information relating to our regulated entities which provide services to clients is detailed below:
|Registered Name||Legal Form||Registration Location and Reference||Registered Office||Data Protection||Regulator(s)||Professional Indemnity Insurance|
|Teneo Financial Advisory Limited||Limited Company||England & Wales, 13192958||5th Floor, 6 More London Place, London, SE1 2DA||UK - ZA920639||The Institute of Chartered Accountants in England and Wales (“ICAEW”) C008873136. All insolvency practitioners are licenced by the ICAEW. ICAEW Designated Professional Body licence for a range of investment business activities.||Details of the professional indemnity insurer can be provided on request.|
|Teneo Securities LLC||Limited Liability Company||USA - Delaware||280 Park Avenue, 4th Floor, New York, NY 10017||N/A||Financial Industry Regulatory Authority (FINRA) #151256. Securities and Exchange Commission (SEC).||Details of the professional indemnity insurer can be provided on request.|
Teneo Securities LLC’s Business Continuity Planning
Teneo Securities LLC has developed a Business Continuity Plan (“BCP”) on how we will respond to events that significantly disrupt our business. Since the timing and impact of disasters and disruptions is unpredictable, we will have to be flexible in responding to actual events as they occur. With that in mind, we are providing you with this information on our BCP.
The Firm has developed and installed a BCP in the case of any business disruption that causes the Firm to have limited or no communications with its employees or customers. Our plan anticipates two types of business disruptions, internal disruptions which affect only our Firm’s ability to do business (such as a fire in our building) and external disruptions that prevent the operation of securities markets or other firms (such as natural disasters or acts of war).
The Firm intends to stay in business during both internal and external disruptions due to the fact that the Firm employees can conduct Firm related business from alternate off-site physical locations and the Firm maintains an alternate location for the maintenance of its books and records. We anticipate that the Firm will recover from internal business disruptions within 24-48 hours. An outage due to an external business disruption may be longer and is beyond the control of the Firm. However, the Firm will endeavor to resume business as soon as it is possible for the Firm to establish business operations from alternate off-site physical locations.
The Firm’s BCP specifically addresses the following areas related to Firm operations:
- Data back-up and recovery (hard copy and electronic);
- All mission critical systems;
- Procedures to test and determine the Firm’s ability to do business (i.e., financial and operational assessments);
- Alternate communications between customers and the Firm;
- Alternate communications between the Firm and its employees;
- Alternate physical location of employees;
- Critical business constituent, bank, and counter-party impact;
- Regulatory reporting; and
- Communications with regulators.
If you have questions about our business continuity planning, you can contact us (212) 886-1600.