GlobalCo, Inc. Global Impact and Safety Trends

Avetta Supplier Performance Report 2021

Table of Contents • Foreword • Key Survey Results • Recommendations

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Section 1: Section 2: Opportunities for Growth

Program Results

02

The supplier prequalification process is an enormous administrative burden that can impact project timelines while increasing operational costs. Avetta partners with companies to enhance supply chain visibility, increase efficiency of supplier qualification process and eliminate manual effort involved in contractor management.

While we have proven results in reducing administrative burden by 75%, this is not just the only benefit that comes with leveraging Avetta’s contractor management solution. Less tangible, but very real are the benefits that come with compliant workplace, safer workers, zero penalties and a better reputation.

Avetta relieves its clients of significant administrative burden by collecting and verifying supplier responses on the basis of their unique compliance requirements – performing the work of 550+ full-time employees and saving them USD millions annually in operational costs.

By leveraging Avetta’s contractor management solution, companies can make great strides when it comes to improving safety metrics. With the ability to report on a contractor’s compliance status anytime, operators can make informed decisions to keep the workplace safer. What’s more, the longer suppliers stay within the Avetta network, the better they perform year-over-year.

For this survey report, Avetta delved into the supplier performance data for one of its key clients – GlobalCo, Inc., to understand global impact of its contractor management program on GlobalCo, Inc.’s business, the overall safety trends observed, top performing trades, program efficiency and so on.

ForewordTogether We Are Better

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Key Survey ResultsFor the �������������������������� ��� on the Avetta platform, we analyzed 3-years of OSHA safety metrics before they joined Avetta platform. These results were compared to 2019 safety performance metrics (2020 performance metrics will be published in April 2021). We also compared 2019 performance metrics to industry average rates. The safety metrics used for benchmarking included:

Number of OSHA recordable incidents per 200,000 hours

Total Recordable Injury Frequency Rate (TRIFR):

Number of accidents per 1,000,000 total hours

Number of fatalities, permanent and temporary disabilities per 1,000,000 total hours

Recordable injuries per 1,000,000 hour

Accident Frequency Rate (AFR):

Lost Time Frequency Rate (LTFR):

Total Recordable Incident Rate (TRIR):

Avetta Supply Chain Risk Management – Program Review

Section 1

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1. GlobalCo, Inc. Successfully Improved its Global Supplier Safety Metrics After implementing Avetta’s solution, GlobalCo, Inc. witnessed a 39% drop in TRIF rates within its supplier base in Canada, 27% drop in supplier AFR rates across UK and 29% drop in TRIR within the US supplier market.

Canada (310)Total Recordable Injury Frequency (TRIF)

39%

UK (221)Accident Frequency Rate (AFR)

27%

US (3,708)Total Recordable Incidents rate (TRIR)

29%

GlobalCo, Inc. Improved Global Supplier Safety by 27% - 39% in 2019

Figure 1: Better Supplier Safety Outcomes

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The Program Outperformed All US Companies Surveyed by BLS by an Average of 33% in 2019

BLSAverage

GlobalCo, Inc.0

1

2

TRIR

-34%

GlobalCo, Inc.0

1

DART

-26%

GlobalCo, Inc.0

0.5

LWCR

-39%

BLSAverage

BLSAverage

GlobalCo, Inc. US 2019

US Suppliers

0 11

1.5

2

TRIR

2 3 4 5 6 7 8 9 10 0 10.6

0.8

1

1.2

DART

2 3 4 5 6 7 8 9 10

-7%Yearly Decline

-7%Yearly Decline

0 10.3

0.4

LWCR

2 3 4 5 6 7 8 9 10

-8%Yearly Decline

0.5

0.6

0.7

Figure 2: Outperforming Industry Benchmarks

Number of Years in Avetta Number of Years in Avetta Number of Years in Avetta

Figure 2 is based on 54,000 suppliers within the Avetta network. It gives a potential look into a continued partnership with Avetta over the next 10 years.

2. Positive ROI from E�ciency Gain and Increased Savings The GlobalCo, Inc. Supply Chain Risk Management program is expected to help the company save USD 12 million annually through software development, better program management and savings arising from accident avoidance. Here are some of the findings that contributed to this figure:

GlobalCo, Inc. avoided internal software development cost of $100,000 in Y1 and $50,000 in annual roadmap & maintenance (conservative estimate)

GlobalCo, Inc.'s average incident reduction rate of 29% based on 2019 data

A Cost/Incident of $37,990 and Cost/Fatality of $1.3M based on National Safety Council (NSC) estimates

A supplier loss (discontinued, bankruptcy, legal issue) cost of $100,000/Event

A cost avoidance of 170,354 contractor hours at an hourly rate of $76 to manage supply chain risk, compliance and qualification for 4,483 suppliers

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The GlobalCo, Inc.-Avetta Program Is Forecasted to Save $12 Million Annually in Software Development, Program Management and Accident-Avoidance Savings

Self Managed Cost Program Cost (At List)* Savings with Avetta

$15,538,221

$3,639,136

$11,899,085

$2,281,694 $1,303,825 $977,869Safety

$2,281,694 $1,303,825 $977,869Financial

$2,281,694 $1,303,825 $977,869Program Cost

Self Managed cost

Program Cost (At List)*

Savings with Avetta

Total Cost $15,538,221 $3,639,136 $11,899,085

*Program Cost (At List) represents the total cost of implementing Avetta within the entire supply chain. These costs are distributed across the hiring client, suppliers, and workers, and do not represent the total cost on the client. In addition, many suppliers receive discounts or special pricing, so real savings are even higher.

Figure 3: ROI

GlobalCo, Inc. + Supplier Costs

~$800/Supplier

~$800/Supplier

Opportunities for Growth

Section 2

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1. Analysis by Supplier Trade RevealsContinuous Growth while Uncovering Room for Improvement Avetta identified the top trades of GlobalCo, Inc. suppliers from the total pool of 4239 suppliers and then these top trades were benchmarked against the industry TRIR safety metric averages. Based on the analysis we identified the top trades in the GlobalCo, Inc. that were out-performing industry TRIR safety rates and the trades that were under-performing. According to our analysis, among top ten trades on the basis of supplier count, GlobalCo, Inc.’s suppliers under the Engineering Services trade were underperforming significantly when compared to the market. The suppliers mapped to the trade had 74% higher TRIR compared to the industry average.

In GlobalCo, Inc.’s top 10 trades by supplier count, “engineering services” suppliers are underperforming compared to the market

Top 10 Trades Supplier TRIR vs NAICS TRIR

RoofingContractors

All Other SpecialityTrade Contractors

Other BuildingEquipmentContractors

Electrical Contractorsand Other Wiring

Installation Contractors

Other Services(except Public

Administration)

Plumbing, Heatingand Air-Conditioning

Contractors

Commercial andIndustrial Machinery

and Equipment (exceptAutomotive and Electronic)

Repair and Maintenance

NonresidentialBuilding Contractors

Power and CommunicationLine and Related

Structures Contruction

EngineeringServices

0

2.5

5 4.8

3.5

2.52.34

2.26 2.12

3.1

1.42

2.5

1.551.90

1.68

2

1.43

2.5

0.53

2.20

0.78 0.6

2.3

NAICS TRIR Supplier TRIR

GlobalCo, Inc. Engineering Services suppliers have a 74% higher TRIR compared to the industry average

Figure 4: Room for Improvement

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GlobalCo, Inc. Engineering services, fiber optic, and fuel dealer suppliers lead the list of underperforming suppliers

NAICS TRIR vs GlobalCo, Inc. TRIR and % Change

Figure 5: Underperforming supplier trades with the highest risk

EngineeringServices

Fuel Dealers Motor andGenerator

Manufacturing

Other NonhazardousWaste Treatment

and Disposal

Fabricated StructuralMetal Manufacturing

Air-Conditioningand Warm Air

Heating Equipmentand Commercial and

Industrial RefrigerationEquipment

Manufacturing

Fibre Optics CableManufacturing

Other BuildingFinishing Contractors

Other Commercialand Industrial

Machinery and Equipment Rental

and Leasing

Architectural Engineering and Related Services

Structural Steel andPrecast Concrete

Contractors

0

2

4

6

8

10

12

284.7%

2.31

0.6

NAICS TRIR Supplier TRIR % Change

Highest risk GlobalCo, Inc. Supplier trades that are underperforming the market

188.4%

4.04

1.4

170.6%

5.95

2.2

140%

5.76

2.4

109.7%

4.82

2.3

86.1%

4.09

2.2

57.8%

4.58

1.0651.1%

2.9

31.8%

5.14

3.9

25.4%

4.01

3.2

4.76

4.4

8.2%

0.7

Besides Engineering Services, GlobalCo, Inc.’s Fiber Optic and Fuel Dealer Suppliers also topped the list of underperforming suppliers.

Suppliers operating across GlobalCo, Inc.’s verticals like roofing, commercial equipment, construction, electrical and power were clearly the safest among the lot.

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Power andCommunicationLine and Related

StructuresConstruction

0

1

2

3

4

5

6

7

8

78%

2.5

0.54

64%

2.2

0.78

Roofing, commercial equipment, construction, electrical and power/comm line suppliers are among GlobalCo, Inc.’s safest suppliers

% Change GlobalCo, Inc. Suppliers TRIR vs NAICS TRIR

Figure 6: The Safest Supplier Verticals

Contruction Roofing Contractors Nonresidential BuildingConstruction

Other Services (exceptPublic Administration)

Electrical Contractorsand Other Wiring

Installation Contractors

Commercial andIndustrial Machinery

and Equipment (exceptAutomotive and Electronic)

Repair and Maintenance

Other Building andEquipment Contractors

All other SpecialityTrade Contractors

Plumbing, heating andAir-Conditioning

Contractors

Supplier TRIR NAICS TRIR % Change

62%

2.8

1.06

54%

3.1

1.42

49%

4.8

2.45

38%

2.5

1.55

28%

22.5

1.43

1.9

1.68

12%2.5

2.26

10%

2.14

15%

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2. Opportunities to Improve Program E�ciency Avetta benchmarked the time taken to establish each completed compliance connection among GlobalCo, Inc. US suppliers onboarding in 2020. Then GlobalCo, Inc.’s median onboarding time was compared to Avetta’s top 25 clients with a similar supply chain footprint.

GlobalCo, Inc.’s median for Annual Update (AU) was 25 days, less efficient than top

clients’ median

The following were the key findings:

GlobalCo, Inc.’s median time for Pre-Qualification Forms (PQF) was

14 days, less efficient than top clients’ median of 8 days. There is

efficiency opportunity here.

GlobalCo, Inc.’s median completion time was 45

days, close to top clients' median of 43 days.

Onboarding Tasks PQF + AU Less Efficient than Benchmark Average

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0 30 60 90 120 150 180 210 240 270

Completion time of top 20 Clients

We benchmarked the time each completed connection took among GlobalCo, Inc. US suppliers onboarding in 2020.

The median onboarding time were compared to our top 25 clients.

A box plot shows 25/50/75-percentiles.

GlobalCo, Inc. median 45 days, close to top

clients’ median 43

GlobalCo, Inc.

Figure 7: Onboarding Completion Time

Completion time of GlobalCo, Inc.

0 30 60 90 120 150 180 210Days

Client-Specific Forms: GlobalCo, Inc.’s median is 2 days < 4 days in top clients

Insurance: GlobalCo, Inc.’s 11 < 20 days in top clients

Pre-Qualification Forms (PQF): GlobalCo, Inc.’s 14 > 8 days in top clients

Annual Update (AU): GlobalCo, Inc.’s 25 > 18 days in top clients

Manual Audit: GlobalCo, Inc.’s 45 close to 43 in top clients

Recommendations

Identify key reasons why specific GlobalCo, Inc. trade verticals where underperforming compared to others

Identify key solutions and/or improvement areas to bolster safety standards of GlobalCo, Inc.’s top ten trade verticals

Thoroughly assess onboarding process and identify areas of improvement to lower onboarding time

The following are the some of the key action points uncovered from the survey:

About AvettaAvetta connects global organizations with 100,000+ qualified suppliers, contractors, and vendors across 125+ countries. We support the continued growth of supply chains through trusted contractor prequalification, safety audits, monitoring, and more. With real results in reducing incidents, our highly configurable solutions elevate safety and sustainability inevery workplace.

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