Data analysis of 87,000 suppliers shows safety incidents reduced from 21% to 55% and safety performance increased 7% to 12% yearly. The longer companies are in the Avetta network, the safer they become.
Orem, Utah—Analysis by Avetta® (www.avetta.com) of 87,000 suppliers worldwide shows clients and suppliers that use the Avetta Connect™ Platform reduce the number of safety incidents and lost work days by as much as 55% compared to industry averages. The longer these companies use Avetta’s supply chain risk management technology, the safer they become—with some yielding a 7% to 12% reduction in workplace safety incidents year over year for as many as 10 years.
Avetta examined hundreds of thousands of safety data points and supplier performance reports over multiple years in 20-plus industries over a 10-year period.
“We improve what we can measure. When clients and suppliers are held to a higher safety standard and have the right technology to track performance, they achieve those outcomes across the supply chain,” said Arshad Matin, Avetta President and Chief Executive Officer. “Making those corrections decreases expenses, reduces accidents and protects brands, leading to lives saved.”
The report shows these suppliers improved safety performance even more over time, accelerating improvement the longer they used supply chain risk management technology.
United States
In the United States, suppliers who participate in prequalification measurements see about a 20% reduction in Total Recordable Incidents Rate (TRIR), Days Away, Restricted or Transferred (DART) and Lost Workday Case Rate (LWCR) compared to the Bureau of Labor Statistics (BLS) averages. Those companies that utilize supplier audits as part of safety programs see as much as a 52% reduction in those measures.
The longer companies use Avetta’s supply chain risk management system, the more workplace safety incidents are reduced. Over the past 10 years, suppliers have reduced TRIR, DART and LWCR an average of 7% to 8% year over year.
DART is a safety metric used by the U.S. Occupational Safety and Health Administration (OSHA) to track workplace injuries and illnesses that cause the affected employees to remain away from work, restrict their work activities or transfer to another job for safety reasons. LWCR is a similar calculation, but it uses the number of cases with lost workdays.
Canada
In Canada, suppliers participating in prequalification experience a 16% reduction in Total Recordable Incident Frequency (TRIF) and a 30% reduction in LWCR. When these companies included supplier audits, TRIF reduced by 26% and LWCR by 51% compared to industry averages.
Longevity with Avetta’s Connect™ Platform yields increasing safety improvements. Suppliers have reduced TRIF and LWCR an average of 6% to 7% year over year for up to eight years. TRIF calculates recordable incidents per 100 full-time workers over a year.
“Avetta-vetted suppliers are significantly safer than the industry averages—ensuring workers get home safely,” Matin said. “Companies that digitize safety information with Avetta solutions are able to evaluate the ability of contractors or suppliers to operate safely. When clients implement these tools, the propensity to have a safer workplace goes up dramatically worldwide.”
European Union
In the European Union, clients utilizing technology for prequalification for their suppliers reduced Accident Frequency Rate (AFR) by 21% and reduced the Incidence Rate (IR) by 50%.
Accident Frequency Rate (AFR) is the number of accidents per 1 million total hours.
Incidence Rate (IR) is the number of fatal accidents and more than 3 days' absence per 100,000 employees (ESAW).
Australia
In Australia, supply chain risk management technology reduced their Total Recordable Injury Frequency Rate (TRIFR) by 17% and the Lost Time Injury Frequency Rate (LTIFR) by 19%.
In addition to immediate impacts to safety, Australian suppliers have seen a reduction of an average of 12% year over year in TRIFR for as much as five years.
Total Recordable Injury Frequency Rate (TRIFR) is the number of total recordable injuries per 1 million hours while Lost Time Injury Frequency Rate (LTIFR) is the number of fatalities and lost time injuries per 1 million hours.
Latin America
In Latin American countries, companies can see significant reductions in safety problems by implementing technology for supply chain risk management. Here are the reductions discovered for Lost Time Frequency Rate (LTFR), the measure for number of fatalities, permanent and temporary disabilities per 1 million total hours.
● Brazil: -51%
● Argentina: -25%
Mexico
In Mexico, suppliers see reductions of 24% of TRIR, and LWCR is reduced by 38% through supply chain risk management.
Avetta Connect™
Avetta’s platform, Avetta Connect™, helps companies worldwide with supply chain risk management, enterprise and workplace safety through contractor management and prequalification with a SaaS-based system that is the most configurable in the industry. Avetta Connect™ enables clients to configure goals, create and customize analytic dashboards, identify trends, modify processes, and produce reports that will improve safety and compliance for their supply chain operations as verified by the data analysis. Avetta Connect™ also supports companies’ efforts regarding sustainability and environmental, social and governance (ESG) priorities.
Clients use the data provided by Avetta Connect™ to help suppliers achieve more specialized performance indicators. This visibility removes barriers and silos between departments. Suppliers know the client’s expectations and employers have the ability to select from the most qualified and safest suppliers in the country. Through this process, EHS, Risk and Procurement areas of a company work together to achieve the desired outcome.
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