2021 SUSTAINABILITY PROGRESS REPORT | Cummins Inc. 71 The past two years have been an important reminder that today’s supply chain is changing more rapidly and facing more challenges than at any time in the recent past. And people have learned the critical role supply chains play in their daily lives. Cummins has long been grateful for those working in these critical roles at the company, but especially now. risk levels to ensure employee safety remains a top priority. They are also establishing regular plant efficiency reviews to drive enhanced flexibility and identify opportunities to reduce costs where possible. The teams are also implementing a new risk assessment process, driving a robust supply recovery process to recover remaining constrained parts, and identifying opportunities to reduce logistics and transportation disruptions—among others. As Cummins’ New Power business segment continues to expand, the company’s supply chain must also adjust to support the changes in product technology driven by the company’s Destination Zero and PLANET 2050 goals to go further, faster to reduce greenhouse gas (GHG) and the air quality impacts of Cummins’ products. The company’s Supply Chain strategy team has been engaged in scaling up Cummins’ supply base and manufacturing capacity to support these goals and deliver increased demand volume for several New Power products globally. This work is currently focused on supporting deployment of new manufacturing plants supporting New Power products in China, Spain and North America over the next two to three years. software to wirelessly connect two or more remote individuals—to conduct employee training, site tours, supplier visits and more. Today, more than 200 devices across dozens of functions at Cummins are using the technology daily. Another prime example of this was the deployment of collaborative robotics commonly referred to as “cobots.” These robots work alongside and interact with humans in a shared workspace— to enhance safe work practices, productivity, efficiency and product quality within Cummins’ manufacturing sites. While the company was already implementing cobots before the pandemic, these efforts were expedited, and Cummins now has more than 300 cobots supporting dozens of manufacturing capabilities across sites globally. LOOKING AHEAD Today, Cummins’ Supply Chain teams are continuing to work on creating a more flexible, resilient and sustainable supply chain, focused on the company’s future growth. The teams have developed a process for ensuring the appropriate revision or removal of the company’s COVID-19 protocols, tracking EYES OPEN AUDITS Cummins is also committed to ensuring human rights are respected throughout its supply chain, both inside and outside the company. One way is through the visits Cummins personnel make to outside suppliers to check on a particular contract. These Cummins employees, most often Purchasing personnel, are trained to perform Eyes Open Audits where they look for signs of such things as human trafficking and child labor as they check on a supplier’s work. As part of the Eyes Open Audits, Cummins employees also look for potential health and safety issues as well as environmental problems. The pandemic has severely limited travel to outside suppliers by Cummins personnel, but leaders are hopeful they will increase in 2022. In 2019, the last full year before the start of the pandemic, company employees performed nearly 400 Eyes Open Audits. restrictions lifting in many regions of the world. The company continues to make masks available to employees who wish to wear them or for employees at sites located in regions at high risk for COVID-19. The pandemic also forced Cummins to think in new ways about working safely and effectively in a virtual or socially distanced environment. Technology played an important role in these efforts. For example, the company began using augmented reality remote assist technology—a technology that uses a headset and communications Cummins is continuing to make greater use of collaborative robots to enhance safe work practices, productivity, efficiency and product quality within Cummins’ manufacturing sites. SUPPLY CHAIN //