Supply Chain Optimization

Walmart Demands Higher Service – But It Is For Your Own Good

by Tom Moore on May 20, 2019 8:00:00 PM

At last week’s Gartner conference, Simon Bailey (Analyst) talked about how getting on-time, in-full (OTIF) is harder.  From 2015-2018 :

  • Case fill is down 1.2%  to 93.3%
  • On time is down 1% to 90.6%
But Monique Picou, VP at Walmart, made it clear that high OTIF is good for sales – i.e., good for everyone!  Monique’s comment:  “We would rather have our suppliers deliver on OTIF vs. collecting fines” – fines run 3%.
 
Higher OTIF is also good for Walmart as their inventory declines while in-stock improves.
 
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