Thinking About Going Collect?
Wal-Mart’s “On-Time In-Full” (OTIF) can be difficult for a small businesses to handle. The OTIF program mandates that all shipments must arrive by the date specified by Walmart.
If a package arrives early, late, or on time but not packaged or not properly labeled, the shipper can be fined 3% of the total freight value! In addition, if your orders are not keyed for routing before 4:00 PM CST the day after order generation, you will also decrease your OTIF score resulting in the same fine above.
Keeping track of best practices, packaging guidelines, transit times, and supplier compliance guidelines can be frustrating. Stick to what you do best, and let NRFS handle your on-time performance and aggressive compliance guidelines set by Wal-Mart.
OTIF 2.0 & SPM Enhancements
Starting in Q2 of 2020, Walmart will be enhancing the OTIF program once again by modifying the OTIF scorecard to differentiate On-Time shipments and In-Full shipments. Currently, OTIF minimum expectations include components that suppliers have no control over. In OTIF 2.0 the collect OTIF score is evaluated on things suppliers can control.
Walmart is removing the minimum OTIF objective, but will still fine 3% of COGS on collect shippers if they do not meet the On-Time or In-Full goals outlined below.
For prepaid POs, the on-time goal will be 87% if shipping FTL and 70%if shipping LTL.
For Collect POs, the on-time ready goal is 95% based on Request for Routing being keyed on-time, and freight is ready on the pick up date specified in routing.
For General Merchandise and Health & Wellness the goal is 95% .
For Food and Consumables, the goal is 97.5%.
B&C Logistics has been operating on Wal-Mart’s new Retail Link Routing platform since its inception. We are experienced with various collect shipping programs to reduce your transit expenses and improve any existing OTIF scorecards.
Feel free to contact us today for more information.