LTAs - Long Term Agreements

LTAs or Long Term Agreements provide benefits for our Customers as well as Johnston. Long Term Agreements provide:

Pricing arrangements that provide our Customers the best scenarios for mitigating future price increases.
An environment for reducing the on-hand inventory for the Customer.
An established agreement that details the obligations for both parties over a multi-year period.
Locked in, specific program metrics that are to be met during the length of the agreement.
A reduced probability of having a program derailed due to short term issues.
Both parties receive an extended period of time to jointly develop and achieve the desired outcomes of an agreement. A long term period of time to track and assess the desired results.