Supply Chain Optimization

Shippers Still Falling Short of Walmart's Relaxed OTIF Targets

by Tom Moore on Feb 27, 2024 6:49:27 AM

Walmart wants suppliers to deliver shipments on time 90% of the time and in full 95% of the time, down from a 98% benchmark set in 2020. 
Vendors that fall short of Walmart’s on-time, in-full targets face fines worth 3% of the cost of the goods that didn’t arrive on time or in full. Source: WSJ.
 
But CPG shippers are not making it — Boston Consulting Group and the Food Marketing Institute study:
  • Q1 2020 (Pre pandemic)  OTIF was  85%
  • Q4 2020 (COVID)  OTIF was  77%  (I thought it was worse than 77%).
In 2023, FourKites says  84% of orders are on time.
 

 

Recall that LevelLoad and our sister company, AutoScheduler, can improve OTIF.

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Topics: Supply Chain Efficiency Supply Planning Systems OTIF

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