What You Need to Know About Walmart's OTIF Initiative

Walmart recently announced new OTIF guidelines for Suppliers. OTIF stands for "On Time & In Full" and is the next evolution of the Supply Chain Reliability program. The last big buzzword was "Must Arrive By Date" or MABD, which generally required you to deliver your products within a 4 day window. The big change with OTIF is that you now need to deliver your products within a 1 day window (on the exact date) -- and it must be the full purchase order.
Colby Beland of CaseStack joins Focus on Suppliers to explain the basics of On Time & In Full.
First, your OTIF performance will be measured against your "OTIF baseline," which is whatever your OTIF score was measured to be as of January 2017. That score will be your baseline for the next fiscal year. Then, you must improve it by 10%.
Penalties and fines will go into effect in August of 2017.
Awareness is important. The first step is to be familiar with your OTIF scorecard. It has detailed information about where you currently stand in regards to On Time & In Full. In Retail Link, navigate to the OTIF homepage. Here, you'll be able to see what is driving your individual OTIF metrics.
You can determinate if any deficiencies are a result of a DC issue, a receiving issue, or a shipping issue.
Bottom line, according to Colby Beland, is that Walmart wants suppliers to focus on the factors that are within their control.
Blake Woolsey (Mitchell Communications Group) asks, "What is the one indicator to me as a supplier that I need to be reaching out to somebody?"
For LTL suppliers with a score below 33% or suppliers shipping full-truckload rated below 75%, Colby says, "You need to get to work."
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