Replenishment Manual: Finding the Root Cause of an Instock Issue

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In the last few years, one of Walmart’s primary goal has been clear – to increase on shelf availability to customers while reducing overall inventory levels. These may seem like mutually exclusive pursuits at first glance, but directives like OTIF and the recently released Out of Stock Root Cause Analysis tool have shown that Walmart is not only committed to this goal but can also make changes to achieve it. We created our Replenishment Manual to help simplify the process of determining instock issues for your business.

In our Replenishment Manual, you’ll learn:

      • How to identify a root cause of an instock issue
      • What questions you should ask to determine the root cause
      • And you’ll receive an easy to follow flowchart to mitigate instock issues
Otif Part 3

Improving OTIF Performance

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.

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Why is OTIF Important?

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!

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How to explain OTIF to your 5-year-old

OTIF stands for On Time In Full and is a key performance indicator (KPI) of your products’ supply chain. OTIF is a crucial measurement of how well your operations team fulfills your orders according to the requirements of your customers.

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