1. August is here. OTIF accountability has begun!
Starting July 29, suppliers will be held responsible for the total OTIF score. As with any new initiative, there will be challenges. There will be growing pains. But ultimately, success will mean better on-shelf availability. Improved OSA and reduced out-of-stocks will mean higher sales for the supplier and the retailer. You have a lot of new tools at your disposal that give visibility into the supply chain.
Some suppliers are still confused about what success looks like. One important change between MABD (Must Arrive By Date) and OTIF is the perspective on early deliveries. Previously, if you “must arrive by” Tuesday, and you deliver on Monday, then you hit your MABD window. To comply with On Time In Full, your delivery must be on time — not early, not late. This allows your item to flow directly onto the shelf, with little or no time spent in the backroom.
2. OTIF will be the #1 topic for your buyer meeting.
Walmart announced at the Supplier Growth Summit that starting August 1, OTIF will be the #1 topic in your buyer meetings until your score is aligned with Walmart’s goal. So if you want to talk with your buyer about a new item, a new display, projected growth, or how the Razorbacks will do this year, you will first have to show improvement with your score.
3. Your OTIF score will need to improve continuously.
What is your OTIF Action Plan? Part of the new initiative is a focus on continuous improvement. So even if you’re already above the minimum threshold for OTIF, you still have to work toward moving the needle.
Get OTIF Help
8th & Walton is offering 3 courses to help prepare your entire team (from sales to logistics) for OTIF success. Nearly every person on your team makes decisions that impact your OTIF score, so it’s important that everyone understands their role in Walmart’s new initiative.
If you haven’t yet completed your OTIF Action Plan, contact 8th & Walton today. Our Supply Chain experts are standing by to help you.