February 27, 2024

Shippers Still Falling Short of Walmart’s Relaxed OTIF Targets

📦 Walmart Eases OTIF Targets, But Fines Still Loom Walmart has revised its On-Time, In-Full (OTIF) delivery expectations for suppliers ⏰ On-Time 90% (down from 98%) 📦 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 lateincomplete 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.
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📦 Walmart Eases OTIF Targets, But Fines Still Loom

Walmart has revised its On-Time, In-Full (OTIF) delivery expectations for suppliers:

  • On-Time: 90% (down from 98%)

  • 📦 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!

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