Walmart wants suppliers to deliver shipments on time 90% of the time and in full 95% of the time, down from a 98% benchmark set in 2020.
Vendors that fall short of Walmart’s on-time, in-full targets face fines worth 3% of the cost of the goods that didn’t arrive on time or in full. Source: WSJ.
But CPG shippers are not making it — Boston Consulting Group and the Food Marketing Institute study:
- Q1 2020 (Pre pandemic) OTIF was 85%
- Q4 2020 (COVID) OTIF was 77% (I thought it was worse than 77%).
In 2023, FourKites says 84% of orders are on time.
Recall that LevelLoad and our sister company, AutoScheduler, can improve OTIF.
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