This week Walmart held its annual Supplier Growth Forum in Bentonville, Arkansas. During the event, the big-box retailer announced changes to its OTIF (On Time In Full) program which stands to directly impact Walmart suppliers. During the summit, Walmart announced new thresholds for supplier delivery requirements, which will take effect in April 2018.
These changes include:
- Truckload (TL) deliveries = 85 percent OTIF
- Less-than-Truckload (LTL) deliveries = 50 percent OTIF
Walmart will continue to assess a three percent cost of goods sold penalty for delayed product that miss the delivery window.
The announced delivery requirement changes are expected to support Walmart’s continued effort in managing inventory flow while increasing store in-stocks and On Shelf Customer Availability (OSCA).
Walmart also announced plans to share more detailed data regarding OSCA to provide suppliers with store level visibility of in-stock levels.
The increased OTIF requirements were announced amid a strong freight market with freight costs continuing to climb and truck capacity extremely tight.
If you are a Walmart supplier and are struggling to find capacity or seeing large increases in shipping costs, contact our team to learn about the benefits of our Retail Consolidation solutions.