Walmart sets 98% on-time in-full shipment standard for suppliers

Walmart is now requiring that suppliers and their carriers deliver all orders on-time, in-full (OTIF) 98% of the time, or be fined 3% of the cost of the goods that miss OTIF. This is a significant increase from the previous requirement of 87% OT and 97.5% in full.

In effect as of September 15, the 98% requirement in Walmart’s OTIF compliance program applies to both truckload and less-than-truckload shipments across all categories of products. 

As reported on Talk Business & Politics, a news website covering business, politics and culture in Arkansas, in a memo announcing the changes, Walmart executives said, “As we continue to keep the customer at the center of everything we do, we must improve product availability to help ensure that our customer can purchase the products they want, when they want, in-store or online. To deliver on this goal, orders need to be fulfilled accurately, on time and in full.” 

DSC Logistics, now CJ Logistics America, has extensive experience providing transportation services across a broad array of industries. The company’s insights into retail and consignee requirements enable high-performance service and risk mitigation. “We are actively monitoring impacts to customers to ensure successful deliveries at the start,” said Ken Heller, Chief Transportation Officer. “Helping our customers, many of whom are food and CPG manufacturers, stay out in front on retailer requirements is essential.”

Talk Business & Politics also reports that Walmart is rolling out its new Supplier Quality Excellence Program (SQEP) that will measure suppliers on four areas as another part of an effort to improve supply chain efficiency. Through SQEP, suppliers will be required to meet Walmart supply chain standards; they will be charged when product shipped through the supply chain does not meet those standards, beginning February 1, 2021. SQEP will be implemented in four phases: Accuracy and Advanced Ship Notice; Barcode and Labeling; Load Quality, Label Quality, Packaging; and Scheduling & Transportation. Walmart’s new standards are similar to the standards in Amazon’s and Target’s OTIF compliance policies.

Walmart is also launching Walmart+, a membership program for consumers guaranteeing expedited home delivery.

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