One of the biggest myths about OTIF performance is: “I don’t work on our Supply Chain, so OTIF isn’t my problem.” Sales leaders and account managers often feel removed from the On Time In Full initiative, but there are 3 important things you need to know before your next Buyer meeting.
1. OTIF Performance will impact Rollbacks and Promotions.
As a sales leader or account manager, you may not contribute directly to your company’s total OTIF score. But the total performance — good or bad — will impact your next Buyer meeting. Shelf space has always been limited. Walmart has communicated that preference for rollbacks and promotional space will now be given to suppliers who have demonstrated reliability by delivering their PO’s on time and in full.
So to prepare for your next buyer meeting, arm yourself with OTIF information. To answer your buyer’s questions, you should be familiar with these 3 things:
- Your current OTIF score
- The factors driving your OTIF performance
- Your OTIF Action Plan for continued success
2. Poor performance will result in fines.
Walmart has published the Supplier Performance Management Invoicing Schedule FYE18 in Retail Link. This invoicing schedule breaks down the exact timeframe the supplier will be measured against for each month by Walmart week. To find the full calendar, navigate to Docs > On Time In Full (OTIF) External. Under “OTIF Supplier Performance Manager,” click “SPM Invoicing Schedule FYE18.”
Below are the months and weeks your OTIF performance will be measured and reported in Retail Link. SPM charges will be sent to Global Shared Services the same week your SPM Summary is published on your OTIF Scorecard.
|Month||WMT Weeks||SPM Summary Published|
|August||WK 27-30||WK 35|
|September||WK 31-35||WK 39|
|October||WK 36-39||WK 43|
|November||WK 40-43||WK 48|
|December||WK 44-48||WK 52|
|January||WK 48-52||WK 04|
3. Your OTIF performance report is available in Retail Link — but it will roll off.
The new tools in Retail Link show your company’s total OTIF performance down to the PO level. In “Accountability Breakdown View,” you will have visibility to the issues impacting the total OTIF score. You will see:
- Order Date, MABD, and Cases Ordered
- OTIF Cases
- Not In-Full Cases
- Late Transport Notification Cases
- Supplier Ship Point Cases
- (Prepaid) Early or Late Delivery Cases
- (Collect) Early or Late Delivery Cases
Most importantly, you will be able to see where the accountability lies for OTIF performance. This information will be available in Retail Link for two weeks, and then the report will roll off.
Be sure to start archiving your PO Accountability reports now so that you can track your OTIF performance and root cause later.