The 3 Biggest Myths About OTIF
Hundreds of suppliers have asked 8th & Walton for help with OTIF. Here are the 3 most common misconceptions we’ve heard:
MYTH #1: “I don’t work on our Supply Chain, so OTIF isn’t my problem.”
Many buyers are starting meetings by asking suppliers for the total OTIF score. If the score is below the mutual minimum objective regardless of who is accountable their buyer meetings may be deferred until the OTIF score improves.
MYTH #2: “We’re collect, so there’s nothing we need to or can do.”
Even as a collect supplier, there are things you can and should be doing to improve the OTIF score. While Walmart may be accountable for certain aspects of the score, everyone is responsible for the overall score. Walmart is counting on suppliers to provide solutions for improving their overall OTIF score, and they will work most collaboratively with the suppliers who do so.
MYTH #3: “Walmart is just doing this to make money.”
Walmart is trying to improve On-Shelf Availability and inventory levels. Suppliers and Walmart can be more profitable by limiting over-stocks and under-stocks and ultimately optimizing the supply chain efficiency. So, in fact, Walmart will be making money through OTIF, but not from Suppliers. OTIF should help everyone gain profitable sales.
OTIF Success Requires Team Effort
Team members from sales, replenishment, forecasting, logistics, and account management all make decisions that affect your company’s total OTIF Score.
These 3 classes will help you understand how each of these roles impacts OTIF — and how best to collaborate to optimize your supply chain (and improve your OTIF Score):