WHITEPAPER

OTIF performance in direct materials

The problem most teams don’t address

A practical guide to strengthening execution stability through structured commitment discipline.

In many manufacturing organizations, OTIF is treated as a performance KPI that needs to be improved. Yet OTIF rarely fails at the moment a shipment is late. It fails much earlier, when supplier commitments are missing, unclear, late, or not operationally enforced.

Planners escalate. Buyers chase confirmations. Logistics searches for faster lanes. Production demands certainty. What appears as a supplier performance issue is often something else: commitment ambiguity.

When confirmations are not standardized, measurable, and governed, execution becomes reactive. OTIF turns into a lagging argument instead of a controllable process.

How to turn OTIF into a controllable process:

  • Identify why commitment ambiguity undermines OTIF in direct materials
  • Establish enforceable confirmation standards and SLAs
  • Replace chasing and firefighting with structured exception management

Inside, you will find a practical operating model for commitment discipline in direct materials supply chains.

The paper explains how to standardize what qualifies as a valid supplier commitment, how to segment suppliers by operational exposure, and how to define measurable confirmation SLAs across timeliness, completeness, and accuracy.

It also outlines how to replace fragmented monitoring with a single exception queue, connect confirmation, ASN, and goods receipt into one execution chain, and implement governance rhythms that survive daily operational pressure.

Finally, it introduces the KPIs that influence behavior at the source, not just the outcome, including confirmation SLA adherence, confirmation accuracy, recovery lead time, and OTIF aligned to confirmed windows.

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