2021 Owens Corning Sustainability Report | Expanding Our Product Handprint | Supply Chain Sustainability | 128 COLLABORATIVE SUPPLIER ACTION PLAN ■ Ensure contract/supply agreement. ■ Document and confirm contingency plan. ■ Administer annual supplier performance management. ■ Search for partnership in R&D and retain long-term relationship. CRITICAL SUPPLIER ACTION PLAN ■ Ensure contract/supply agreement. ■ Complete risk assessment, then document and confirm contingency plan with upper management. ■ Create communication plan with upper management. ■ Administer biannual supplier performance management. ■ Search for partnership in R&D and form long-term relationship. TRANSACTIONAL SUPPLIER ACTION PLAN ■ Leverage competition. ■ Outsource. ■ Automate. ■ Consolidate spend, reduce vendors, and increase impact. ■ Leave supplier in “non-critical” category. BOTTLENECK SUPPLIER ACTION PLAN ■ Restrict future business until risk is mitigated. ■ Ensure contract. ■ Complete risk assessment, then document and confirm contingency plan. ■ Administer biannual supplier performance management. ■ Prepare exit plan/dual source. Collaborative Supplier Low Risk/High Impact Relationship Owner: Commodity leader, with multiple levels of involvement — including executive. These are highly significant for Owens Corning, and they often represent a high portion of our overall spend and/or high-volume bulk purchasing. They often offer low-complexity items, and Owens Corning has purchasing power in these transactions. There are often multiple available suppliers that can be transferred at a reasonable cost. Critical Supplier High Risk/High Impact Relationship Owner: Sourcing/business leaders, with multiple levels of involvement — including executive. While critical suppliers present risk or are subject to disruption, as discussed on page 127, they also represent a high impact on our operations, due to high spend, innovative or key product or service offerings, products, cost savings, a competitive advantage, or a long-term relationship with Owens Corning. Transactional Supplier Low Risk/Low Impact Relationship Owner: Relationship managed by local sourcing. Transactional suppliers represent a low impact on our operations and/or cash. They offer standard items and multiple available suppliers can be transferred at reasonable cost. Most of these suppliers are financially strong and stable, without disruptions to supply. Bottleneck Supplier High Risk/Low Impact Relationship Owner: Commodity leader. In addition to the risk factors discussed on page 127, bottleneck suppliers deliver lower levels of profitability and are low or medium spend. The products they supply may also be technically complex and/or may represent a limited source or a niche market. IMPACT RISK Supplier segment categories and their specific action plans are outlined in the following chart: Characteristics of Different Supplier Segments and Action Plans