Navigating the supply chain industry is challenging, exciting, and full of opportunities. Do you consider yourself an expert? Somewhere in the middle? Maybe you’re just starting out? Take a break from the day to day and see how much you know!
Ever get a check back from Walmart with big, fat negative numbers and some mystery codes attached to them? Walmart will sometimes subtract deductions from your invoiced amount for various infractions and label them with corresponding reason codes. The three most common adjustment codes are 22, 24, and 25.
Making sure you are compliant with OTIF requirements can be tricky. You’ll need to do in-depth analysis into potential issues, such as warehouse issues and carrier delays. The various silos of your organization must interact with each other to ensure full compliance and prevent future chargebacks from happening.
Not complying with your purchasers’ OTIF requirements can be very costly, and result in hefty fines. For example, Walmart fines its vendors 3% of the cost of goods sold if the order fails OTIF requirements. In 2016, Target stores increased their OTIF penalties to 5% of the order cost, five times what it previously was. That kind of money adds up!