At last week’s Gartner conference, Simon Bailey (Analyst) talked about how getting on-time, in-full (OTIF) is harder. From 2015-2018 :
- Case fill is down 1.2% to 93.3%
- On time is down 1% to 90.6%
But Monique Picou, VP at Walmart, made it clear that high OTIF is good for sales – i.e., good for everyone! Monique’s comment: “We would rather have our suppliers deliver on OTIF vs. collecting fines” – fines run 3%.
Higher OTIF is also good for Walmart as their inventory declines while in-stock improves.