In the pharmaceutical industry, centralizing supply chain planning functions has gradually become the standard. The goal seemed clear: harmonize processes, improve end-to-end visibility, and enable more coherent capacity decisions on a global scale. This approach has indeed brought real benefits in terms of strategic oversight and coordination between markets and production.
Yet behind this apparent success lies a deeper imbalance. By transferring most planning responsibilities to global entities, local planning functions—particularly at the factory level—have gradually been stripped of their substance. Their role, once central to operational control on site, is often reduced to executing plans decided elsewhere. This gradual shift has led to a loss of autonomy, purpose, and sometimes industrial performance.
How can this trend be reversed?
The Paradox of Centralization
A supply chain can only perform well if each of its links does. Behind every global plan lies a complex industrial reality, full of constraints, uncertainties, and daily trade-offs. Planning truly proves its value on the factory floor, where adaptation and local optimization happen. A strategy only matters if it can be executed rigorously and responsively—directly depending on the skills and autonomy of local teams.
The most advanced organizations understand this: global performance is not built against the field but with it. Global Planning sets the direction, prioritizes, and arbitrates. Local Planning translates this vision into action, optimizing resources and managing performance in close alignment with real-world constraints.
The Critical Role of Local Planning
Revaluing local planning functions means acknowledging their decisive role in supply chain reliability. Local planners ensure stable production plans, anticipate deviations, and adjust sequences according to actual capacity.
They also guarantee continuity of supply to markets and, consequently, the quality of service delivered to customers. In this context, the most relevant metrics are not only internal: Service Level to Customers, days of stockouts, and product availability reflect actual performance far better than OTIF alone, which is often perceived as a logistics metric disconnected from the customer experience.
Restoring Meaning to local  Planning
Putting factory planners back at the center restores purpose to planning itself. These are experts of industrial reality, professionals capable of turning a global vision into reliable execution.
Reestablishing the role of local planning begins with clarifying responsibilities and improving the complementarity between global and local teams. Globally, priorities lie in coordination, strategic alignment, and capacity arbitration between sites. Locally, planning focuses on execution optimization, fine-tuned constraint management, and short- to medium-term control.
For this complementarity to work, a bi-directional model is essential: local teams don’t just execute global decisions—they feed global planning with reliable data, highlight constraints, and propose trade-offs. Regular feedback loops—such as weekly reviews of local constraints with Global Planning—turn these interactions into real performance levers.
At the same time, it is crucial to build a rewarding career path for local planners. Clear career progression enables them to evolve into recognized expert roles, such as “Site Planning Master” or “Local Supply Chain Optimization Lead.”
Creating a cross-functional network of planning experts, visible and valued alongside global functions, further reinforces their recognition. Finally, highlighting local gains achieved through optimization initiatives—Lean Planning, automation, simulations—demonstrates the strategic impact of these teams on overall performance.
Global Excellence Starts in the factories
Global excellence is not commanded from headquarters. It is built every day—on the shop floor, in planning offices, close to operations. Local planners are the discreet artisans of this excellence: embodying rigor, responsiveness, and resilience that distinguish a well-managed supply chain from a truly high-performing one.
By placing local planning at the heart of operations, companies strengthen agility, coherence, and their ability to respond effectively to market needs.
It is in this alliance between global vision and local excellence that the true competitiveness of the supply chain is decided.
How are you empowering local planning functions in your organization?
Et vous, comment valorisez-vous les fonctions de planning local dans votre organisation ? #SupplyChain #Pharma #Planning #Leadership #OperationalExcellence
Why do so many Supply Chain experts persistently focus on the OTIF performance indicator — On Time In Full — whether to assess a subcontractor, a supplier, or even their own plant? Because OTIF is seductive. It reassures. It offers the illusion of simplicity, a single truth, and total control. At first glance, it seems to represent the promise of a satisfied customer: deliver on time, deliver the right quantity, deliver what was ordered. The industrial dream summed up in four letters. The real key indicator of any Supply Chain’s health, however, remains the level of Service to the Customers who keep us alive.
You can easily spot the OTIF believers. They speak in percentages, swear by their dashboards, and treat any deviation from target as a mortal sin. The world around them may be falling apart — shortages, overstocks, runaway costs, exasperated customers — it doesn’t matter: as long as the OTIF looks good, everything’s fine.
Yet OTIF is nothing more than the GPS of the blind — version 4.0 of magical thinking. We stop trying to understand the system; we just rate it. We no longer manage the flow; we evaluate it. We follow the voice of the GPS, even when we’re clearly getting lost.
Behind the apparent simplicity of OTIF lies a worrying intellectual poverty. Relying only on that indicator means confusing consequence with cause, result with control, measurement with understanding.
True Supply Chain professionals know that OTIF is just a thermometer. The performance of a supply network, a factory, or a major CMO cannot be reduced to delivery punctuality. It lies in process robustness, variability control, flow synchronization, quality of decision-making, and the ability to respond intelligently to the unexpected.
But of course, measuring these dimensions requires discernment, method, and above all, a management culture based on causes rather than symptoms. It’s far less “sexy” than waving a percentage in an executive committee meeting.
In many companies, OTIF has become the fig leaf covering a deep misunderstanding of how Supply Chains actually work. It’s brandished like a totem, discussed religiously every month, yet rarely questioned for what it truly reveals. A 98% OTIF can easily conceal an organization under stress, bloated inventories, absurd trade-offs, and frustrated customers.
The ignorant will settle for it, as OTIF gives them the illusion of rigor. The others — those who truly understand Supply Chain — see it for what it is: a useful signal, yes, but only when read within a systemic framework, connected to indicators of reliability, flexibility, collaboration, and governance.
OTIF should never be a goal. It’s a symptom. And as long as we confuse fever with disease, the Supply Chain will remain a fragile mechanism observed from afar, rather than a living system we understand, nurture, and help grow.
Pourquoi tant d’experts en Supply Chain management se focalisent-ils maladroitement sur l’indicateur de performance OTIF — On Time In Full — que ce soit pour mesurer la performance d’un sous-traitant, d’un fournisseur ou même de leur propre usine ?
SUPPLY CHAIN PLANNING THE GAME OF LABELS OR THE FALSE PROMISES OF PROGRESS
What has really changed in the area of industrial planning over the last 50 years, except the fact that every technological leapfrog and every extension of the Supply Chain scope has given birth to new acronyms and to purely commercial and marketing maneuvers by consultancy firms and systems vendors, with the only goal of outdating what had gone before..
However, whatever the system is , nothing will ever replace the relevance of the three-level approach, what I called yesterday the “funnel method” (S&OP/RCCP, MPS, Shop Floor Scheduling) developed during the invention of the MRP2 principle. What makes MRP2 so important, and what penalizes those who are attached to the history of industrial planning, is that this three-letter abbreviation represents both a computer calculation system, and an indestructible logical method of approaching industrial planning.
The advantage of this methodology at the time, was that it recommended to start with an in-depth macroscopic analysis of long-term demand, and the ability of the industrial network to meet it (S&OP). Taking a step back with this global view of the supply chain, made it possible to anticipate major problems and take appropriated decisions.
This local or global panoramic view of the supply chain has also enabled companies, since those distant days, to reduce the gap between their strategy and their day-to-day operational objectives. S&OP, a real opportunity to align day-to-day decisions with long-term objectives.
Logic dictated that we should in a next step, focus on a more limited timeframe, namely the short and medium term, so that we could integrate in the future execution plan, the decisions taken during the S&OP process. At this stage, this approach enables us to make firm commitments to the customers, after verification of the industrial capacity and the raw materials that are really available to make these promises.
Ultimately comes the time to plan for the very short-term execution, with fine-tuned scheduling, allocation of materials and even personnel on the equipment.
What has changed over the last 50 years is that the MRP2 system was initially aimed at just one component of the company, Production, and material supply planning; it wasn’t until the end of the 90s that ERP appeared, when all the company’s components started to be considered in the same system.
Apart from that, the learning from MRP2 certainly didn’t deserve “to be thrown out with the bathwater together with that baby”.
Then came the APS (Advanced Planning Systems) times, which thanks to extraordinary technological progress, have allowed the expansion of the Supply Chain scope to a much larger scale, every day more global. The speed of execution and power of the ‘Solvers’ offered unsuspected new possibilities, but was that enough?
Without the intelligence of a real operating method for analyzing the thousands of data supplied by these new machines, plus well-established working protocols for taking decisions and passing them on throughout the chain, technology will never be anything more than an accelerator of chaos.
The same communication and marketing strategists mentioned in the introduction have, at every step forward, tried to undermine the value of the old words and principles , creating new acronyms which soon appeared, as just superficial layer of varnish, barely masking the old principle which had already been successful for many years. For example, the old S&OP of the last century has finally survived quite well, even if it has been partially eclipsed by BP or other abbreviations.
False boasts about progress!
In fact, the real evolution in the history of S&OP has been the extension of its scope from a single site to an entire industrial network and the extension of its themes to more financial aspects. It is important to recognize in a reasonable way that in this case, the technological progress linked to the systems has simply responded to the growing needs of the business and not the other way round. This is a natural evolution which demonstrates the adaptability of S&OP to the increasingly complex requirements of industry.
The MPS, has suffered more, and has often disappeared behind ‘operational planning’ or other acronyms. I’ve even heard specialists telling me that it was completed out of date.
For my part, I am firmly convinced that there will always be a need in a planning cycle for a key phase during which, over a shorter timeframe and at a finer level of granularity, the planner will use the alerts from his system to confirm the feasibility of a plan that will enable firm commitments to be made to customers.
In conclusion, I would strongly recommend that all those who are keen to ‘old-fashionedise’ the past should preferably use their creativity and intelligence to solve the problems that are impeding the supply chain, customer service and business costs, rather than engaging us in this sterile battle of so-called modernity, which is without any fundamental interest.
Alliances, acquisitions, and mergers can often look like  true battlefields, with employees openly or covertly revealing their heightened stress levels, distractions, and overall sense of confusion.
Even though top managers may present themselves with “Aqua Fresh” smiles on TV or in magazines, boasting about their clever strategies and imagined partnerships that promise maximum growth and profitability for shareholders, the reality within the new corporation is often far from easy.
As stock exchange value goes up, delighted by this new generation of head-cutters, situation in the field often looks more like the Bronx in New York.
According to a recent study conducted by A.T Kearney on a hundred companies that recently underwent a merger, 58% of these companies, either partially or completely, killed the existing values and assets (human and organizational assets), without gaining any form of capitalization. This emphasizes the potential negative impact that such mergers can have on the human and organizational aspects of a company.
Two-thirds of them have confidently acknowledged their inability to achieve their strategic objectives.
Frequently, the expected savings that have justified significant cost-cutting decisions never materialized or were only achieved superficially through large-scale restructuring based on factors like the number of employees or facilities. This often leads to chaos within the organization and later results in substantial indirect costs. There are several main reasons for the subsequent increase in costs after restructuring:
Best elements are leaving rapidly, creating confusion between survivals.
In the world of management, best “Politicians”, cleverly secure key positions for themselves and their inner circle through skilled lobbying, leaving the others in an unbearable state of expectation.
The reorganization process remains stucked in the “reconstruction” stage, leading to a persistent and chaotic situation that persists even after 2 or 3 years. This ongoing mess is causing significant challenges and inhibitions at lower levels.
Senior professionals are often dismissed, sacrificing their valuable expertise and knowledge, leaving behind them an empty shell.
The absence of a proactive approach to create a new corporate culture in the early stages, can inadvertently contribute to the persistence of antagonistic factions within the organization.
Desynchronisation of existing synergies between R&D, Manufacturing , Marketing…
Productivity of employees at the shop floor level can gradually declines as they become preoccupied with rumors circulating amongst them about their future.
So, what’s the verdict? Is losing your job after a merger or an acquisition a favorable outcome or a detrimental one?
Trying to retain your position within your current company, with unclear borders in your role, and a deteriorating work environment, may not always be the most favorable choice.
Think twice before taking any decision!
If you desire to adapt yourself and thrive in the changing landscape, while navigating through the unpredictability of this new era, you may find your inspiration in Ian Stewart’s enlightening masterpiece, “The New Science of Disorder”. Within its pages, you will discover valuable insights on embracing the confusing nature of chaos and uncertainty.
Alternatively, you could choose to collaborate with us, as we offer numerous methods to preserve and sharpen your skills without succumbing to disorder.
Emmanuel de Ryckel
PS: I wrote this text at the end of the 2000s when I was managing industrial operations at the Honeywell site in Amiens. I rewrote it today as an experiment using AI, which didn’t really convince me.