Decoding OTIF: Why Your Plant Runs but the Market Still Cries

Written by Chandan Chatterjee

May 31, 2025

Your operations are on track. Your manufacturing lines are humming. Yet, customers are frustrated, orders are missed, and sales teams are firefighting.

The Paradox:

“Our factory is operating at 95% efficiency. Why are customers still complaining?”

This is the paradox many organizations live with: – operational success inside, customer frustration outside.

The disconnect? OTIF

✅ What is OTIF, really?

OTIF measures whether a customer gets exactly what they ordered,in the quantity they expected,at the time they expected. It’s the final handshake — where all your planning, production, warehousing, and logistics either come together or collapse.

Yet, OTIF is often misunderstood or oversimplified. For example:

‘On Time’ is not “as per dispatch date, but ‘as per customer need date’
‘In Full’ doesn’t mean what’s available in stock — it means what the order committed to deliver.
Internal metrics like “plant capacity utilization” or “inventory turnover” don’t always translate to external service success.

🛠️ Why your plant can be running — but your market still cries:

1. Mismatch between planning and demand

* Forecasts are top-down. Orders are bottom-up. If they don’t talk, you’re just playing supply chain whack-a-mole.

2. Production-driven mindset

* Plants run full-batch for efficiency. Markets need responsiveness. The two often clash unless cross-functional alignment exists.

3. Siloed Working & KPIs

* Manufacturing celebrates output. Logistics celebrates dispatch. Sales celebrates billing. But no one owns delivery experience.

4. Inventory in the wrong place

* You might have stock — just not where the customer needs it. Geography matters as much as availability.

5. Poor master data & systems hygiene

* OTIF depends on accuracy — of lead times, routing, MOQ, pack sizes. Garbage in, failure out.

🎯 How to Fix It — Sustainably

1. Redesign OTIF as a shared metric across functions: planning, production, supply chain, and sales. Make it a team sport.

2. Segment customers and service expectations — not all orders need the same rigor. Design differentiated fulfillment strategies.

3. Use root cause analysis on every miss, not just high-level dashboards. Is it a product issue? Plant? Planning? Transport? Label it.

4. Tie OTIF to incentive structures, not just presentations. What gets rewarded gets managed.

5. Build a digital command center — real-time visibility of forecast vs. order vs. delivery. Data should not be a post-mortem report.

🧠 Final Thought:

OTIF is not just a supply chain metric — it’s a mirror to your organizational maturity.
When your market cries despite internal performance, it’s not a logistics issue.
It’s a “strategy-execution alignment issue.”

And in today’s volatile, omni-channel, customer-first world, your real differentiator isn’t production speed — it’s delivery precision.


  • Chandan Chatterjee

    With over 30 years of expertise in supply chain management, operations, and cost excellence in the Pharma and FMCG sectors, Chandan has transitioned from leadership roles at companies like Zydus, Torrent, Cadila, and Dabur to becoming a trusted management consultant. He mentors startups and MSMEs, driving transformative initiatives—from vendor reorganization to strategic cost management—that deliver measurable results. A seasoned speaker and thought leader, Chandan empowers organizations to navigate complexity and achieve sustainable growth.

    View all posts

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