Walmart Compliance OTIF (On-Time In-Full)
Walmart is “tightening-up” their supply chain compliance standards for all vendors that started February 2017 and cutting down on the MABD windows and inaccurate orders. Why? According to Walmart, this will help Optimize product flow and allow for enhanced “On-Shelf Availability”. This allows them to keep up with the speed to Market of the “Amazons of the World,” as they are relying more on their suppliers and vendors to meet stricter standards and help lean out their supply chain to minimize Overstock and Understock. According to business reports, this could add anywhere from $1-2 Billion in annual compliance fees.
- Failure to meet the OTIF Minimum score will result in a 3% Charge Back on the cost of goods sold.
- Food Grade and Cosmetic Product will require a Single Day Window, not a day early or day late.
- General Merchandise and Goods Not for Resale expectation to deliver on the MABD or one day prior, (2-Day Window). Late is considered a failure.
- No tolerance for short or missing product.
- End Goal is to deliver to the DC’s 95% on-time and 100% in-full.
- This compliance will be on a graduated scale. Currently must be at 33% On-Time In-Full through 2017 and 55% by January 2018.
- OTIF Measured Monthly instead of Quarterly
- Disputes will not be tolerated
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Sims Global Retail Value-Added Benefits
- Exceed Walmart’s Expections of OTIF Compliance
- Reduce Charge Backs
- Reduce Labor and Transportation Costs
- Create Efficiencies & Increase Productivity
- Meet your Deadlines
- Average 7-22% Transportation Cost Savings
How Do We Stack Up?
- We are currently sitting at 96% OTIF with all Walmart Suppliers and the bulk are single day windows
- According to business reports, Walmart’s top 75 suppliers are struggling to hit the 2017 minimum requirement of 33% and some are as low as 10% compliant.
- WHERE ARE YOU?