Execution always varies from plan. We bake inefficiencies into our planning process by buying insurance in the form of extended order lead time, safety stock, lower planned machine utilization, overtime, expedited freight and premium freight to reduce the risk imposed by this variance. In some cases, we pay penalties in addition to this insurance depending on contract terms. And we pay an opportunity cost where we could have optimized purchasing, operating, and logistics costs through capabilities such as advanced leveling.
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