Walmart Is Tightening OTIF Requirements. Can Suppliers Step Up Their Game?
Rachal (Snider) Jordan, GlobalTranz’s VP Customer Supply Chain, shared her thoughts with SupplyChainBrain regarding Walmart’s recent announcement that it is tightening its OTIF (On-Time/In-Full) requirements for suppliers:
“Changes in the manufacturing landscape, driven by customer demand for more product options, will complicate efforts to meet Walmart’s tougher OTIF standards. Manufacturers can no longer optimize their plants with large production runs. What’s more, the coming of e-commerce and the omnichannel is reducing the number of full pallets shipped in favor of small packages — all of which makes for a more complex supply chain. ‘For every 10 SKUS in a Walmart store,’ says Jordan, ‘the omnichannel wants 100.’”
“At the same time, shippers should be preparing to meet not only Walmart’s new OTIF standards, but even tougher ones in the years ahead. ‘They should imagine a 95-percent [minimum] throughout the industry within the next five years,’ Jordan says. ‘We’re already setting ourselves up for that expectation.’”
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