Supply Chain Optimization

Walmart Makes It Harder

 

 

Announced Sept 1:  Walmart suppliers will be required to deliver inventory to distribution centers on time and in full (OTIF) 98% of the time beginning Sept. 15 – up from the existing 87%.  Let me be clear:
  • It is important that suppliers get better (full disclosure here:  we have a vested interest as we have tools to help with OTIF – so it is in our best interest) 
  • I don’t know how many are already achieving the 98%
  • This is a 12.6% jump in performance goals in 2 weeks
Other news:
  • The $200 domestic airline change fee is dead!   
  • Ocean freight rates are holding up as steamship lines are disciplined in their management of capacity while volumes are holding up – 450,000 containers were unloaded in July 2020 in LA – not far from last July
  • Overall, U.S. rail volumes fell by 11.8% in the first eight months of the year – not good for rolling stock owners or builders
  • Warehousing and storage added 34,400 jobs in the U.S. from July to August