COMMENT: The importance of a D-U-N-S Number for Cypriot companies

By Stavroula Kousiappa

 

The uncertainty that characterizes the global trading environment raises the need for businesses to find tools and solutions which will assist them in securing their trading transactions and provide references regarding their activities around the world. Based on this need, the Data Universal Numbering System, or D-U-N-S Number, was created back in 1962 and through the years turned to be a global standard for identifying business in a specific country or area. Dun & Bradstreet (D&B) is the copyright owner of the DUNS Number.

Any firm that is interested in being included in the D&B’s database receives a unique nine-digit number which supports its credibility in the market and assists potential clients, suppliers and lenders to identify and learn about this company. In real terms, up to now there have been assigned more than 100 million of DUNS numbers worldwide of which more than 12,000 belong to Cypriot firms.

What increases DUNS Number’s importance is the fact that it is recognized by the United Nations, the European Commission, the American National Standards Institute, the International Standards Organization (ISO), the United States Federal Government, the Australian Government and the Government of Dubai. In the US, the DUNS Number is considered as a principal identification number for the firms which are interested in doing business with the Federal government through Electronic Data Interchange transactions and they are obliged to present it during the submission of an offer, the registration and the transaction process.

A crucial question that may arise is why a company should need a DUNS Number. How can a firm be benefited from this number? This simple nine digit number has the ability to make things easier for a firm in completing its trading transactions and getting into new contracts and agreements with suppliers and customers, thus increasing its market share and profits.

As D&B points out a DUNS Number helps in the identification of cross-selling opportunities within a group of companies, the organization of customers, prospects and suppliers database, the reorganization of transactions, the integration of a firm’s internal systems by controlling payables and receivables and the elimination of operating costs by connecting interrelated suppliers and the increase of firm’s purchasing power. Furthermore, it simplifies communications, utilizes a general classifier or identifier for invoices, requisitions, payments, shipping, customs clearance and other business documentation and helps to tap revenue and customer service opportunities by connecting related customer accounts and revealing new prospects.

In Cyprus, where the economy is smaller compared to other economies like the US and the UK, the assignment of a DUNS Number on every company registered within the country will easily lead into a powerful network in which every company will be able to exchange and get information on local and international firms with which may be interested in doing business with. Despite this, companies from abroad which are willing to commence trading activities with Cypriot companies will be more secured when they know that a potential partner is registered in the world’s leading, credible, accurate commercial information database of D&B.

The consequences of being a member in this gigantic database can only be positive. Companies can see their payment terms improving, the volume of imports and sales increasing and the number of their business partners rising day by day. 

 

The author has a MA in Industrial Economics and is Research Executive at Creditinfo Cyprus (sole distributor and correspondent of Dun & Bradstreet in Cyprus)