📦 Walmart Eases OTIF Targets, But Fines Still Loom
Walmart has revised its On-Time, In-Full (OTIF) delivery expectations for suppliers:
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⏰ On-Time: 90% (down from 98%)
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📦 In-Full: 95% (also down from 98%)
However, there’s still a penalty:
🚫 Suppliers who fall short face fines of 3% of the cost of late/incomplete goods.
📰 Source: Wall Street Journal
📉 Reality Check: Are CPG Shippers Meeting the Mark?
A study by Boston Consulting Group and the Food Marketing Institute reveals how OTIF rates have shifted over time:
| Period | OTIF Performance |
|---|---|
| Q1 2020 (Pre-COVID) | 85% |
| Q4 2020 (COVID Peak) | 77% |
| 2023 (FourKites Data) | 84% on-time orders |
💭 “Honestly, I thought Q4 2020 was worse than 77%.”
Even with adjusted targets, many suppliers are still falling short—highlighting the persistent challenges in supply chain reliability.
Recall that LevelLoad and our sister company, AutoScheduler, can improve OTIF.
For a wealth of additional resources and insights, explore our website at https://provisionai.com/ and connect with us on our social media channels for the latest updates and information!