- How Walmart measures its OTIF goals
- On Time compliance issues
- In Full compliance issues
- Collect Ready compliance issues
We’ve discussed the basics of OTIF and the fundamentals of OTIF before, but we thought we’d drill down deeper into the individual metrics. First, we’ll start by reviewing the basic goals of OTIF, and then we’ll dive into each metric and the compliance issues of each metric.
We are only covering Supplier Accountability OTIF metrics. Please note: There are some OTIF issues that are listed as Walmart Accountability, but for the sake of clarity, we will not be discussing those. For more information, check with your buyer.
Walmart’s monthly OTIF goals that suppliers are responsible for are as follows:
- In Full:
- General Merchandise and Health and Wellness: 95% of all cases ordered are delivered
- Food and Consumables: 97.5% of all cases ordered are delivered
- Prepaid On Time (i.e. when you manage the transportation):
- Less than Truckload (LTL) Shipping: 70% of all cases delivered are delivered on time
- Full Truckload Shipping: 87.5% of all cases delivered are delivered on time
- Mix of Full Truckload and Less Than Truckload: If you use a combination of Full Truckload and Less Than Truckload, then Walmart will give you a “blended goal” somewhere between 70% and 87.5% for required On Time percentage, generally correlated to how much Full Truckload versus LTL you move product on. For example, mostly Full Truckload and a little LTL Walmart may assign you an 85% On Time goal.
- Collect Ready (i.e. when Walmart manages the transportation):
- 95% of all cases are routed on time and ready for pick up
For more on this, check out our Why is OTIF Important? blog post.
OTIF Compliance Issues: On Time
On Time compliance issues for “Prepaid” are for times where you manage the freight. In these instances, you own the On Time accountability.
Prepaid Early Delivery
Cases on an order are designated “Prepaid Early Delivery” if the cases were delivered to the distribution center (DC) before the Must Arrive By Date (MABD) window. Early deliveries can be bad because they cause congestion in Walmart’s DCs and can actually result in the order arriving late to the store.
Prepaid Late Delivery
Cases on an order are designated “Prepaid Late Delivery” if the cases were delivered to the DC after the MABD window. Late deliveries can be bad because they can cause replenishment and stocking issues. You want to make sure that your product is always stocked and having on time deliveries will help with that.
Prepaid Unscheduled Appointment
Cases on an order are designated “Prepaid Unscheduled Appointment” when the cases arrive on a truck at the DC without a delivery appointment. Because the shipment did not have a delivery appointment, the Pro date will be considered the Arrival Compliance Date. This Pro date represents when shipping documentation is processed and may be days after the actual goods arrive. Scheduling DC appointments is something typically done by you or your carrier/3PL. Scheduled appointments are important so that the DCs know what to expect and can plan accordingly.
For more information on MABD windows, check our OTIF – How To Meet Delivery Appointments blog post.
OTIF Compliance Issues: Collect Ready
Collect Ready orders are instances where Walmart or a third party is in charge of picking up the order. Some compliance issues for Collect Ready orders go into the supplier’s accountability bucket, while others are owned by Walmart. Here are the ones that are the supplier’s accountability.
Supplier Ship Point
The “Supplier Ship Point” bucket occurs when an order fails to be Collect Ready because the assigned carrier could not secure the load in a timely manner due to an issue caused by the supplier. This is based on a carrier EDI transmission reason code of “Held by Shipper”.
This means that the carrier was not able to secure the product upon the pickup attempt due to a supplier-caused issue. For example, the facility may have been closed, there may have been too many trucks in line to pick up shipments, or the product simply wasn’t ready. In order to avoid accountability, you are required to submit a ticket to Walmart Transportation if a carrier does not show up for a pickup appointment. Either way, this compliance issue will count against your OTIF score.
Late Transport Notification
You will see a “Late Transport Notification” if the Request for Routing was not completed in a timely manner. Requests for Routing should be submitted by 4:00 PM CST the day after receiving the order.
This means that the supplier failed to submit a request for routing by 4:00 PM CST the day after the PO was submitted by Walmart. This includes weekend days, so be sure that you’re able to route all POs the day of, and the day after, any of your order review days of the week. Order Review Days are the days of the week that you’ve told Walmart you can receive POs on.
For manual orders, the expectation is to key the request 30 days prior to the MABD. If the order is received less than 30 days prior to MABD, the expectation is to key the routing request by 4:00 PM CST the day after receiving the order.
Specifically for D94 (Produce) items, System and Manual PO routing requests should be submitted at least two day prior to the ship-on day. If the order is received less than two days prior to the ship-on day, the expectation is to key the routing request on the day the order was received.
OTIF Compliance Issues: In Full
In-Full metrics measure the number of cases ordered against the number of cases delivered.
An order is considered “Not in Full” if the number of cases received was less than the number of cases ordered per PO line. System-generated orders are measured against the original order quantity. Manual orders are measured against the adjusted order quantity.
This means cases were not delivered to the destination as ordered. If a supplier cancels an entire PO or individual PO lines, the cancellation information is available to review in OTIF. Canceling a PO or PO line can be helpful as opposed to just not fulfilling an order with Walmart so that you can differentiate canceled POs on Not In Full issues from POs where you did not expect to be short.
OTIF by SupplyPike
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