USING HISTORICAL DATA TO UNDERSTAND YOUR OTIF SCORE
In an attempt to increase product availability and drive efficiencies at its stores, Walmart is implementing On Time In Full (OTIF) as a way to improve Supply Chain service levels across its vast logistics network. Under the OTIF guidelines, all suppliers are feeling the pressure to dive into the inner workings of their supply chains, reviewing DC performance, shipping routes, item packaging and more. Delivered via scorecards, Walmart measures OTIF compliance every four weeks to highlight areas requiring improvement sooner and more frequently than in the past. This means that if suppliers do not meet the compliance threshold, their exposure to fines will be 3% of cost of goods within the missed shipments. This creates a greater potential expense for suppliers than under the previous Supply Chain Reliability Program.
To help Walmart suppliers improve OTIF compliance and avoid potential fines, RSi has developed an introductory automated solution, providing ongoing historical data with the ability to aggregate it across time. OTIF Visibility’s built-in dashboards allow end users to identify patterns and drill down to DCs, POs and associated items for quick recognition and prioritization of problem areas.
Suppliers can quickly identify potential financial exposure broken down by individual DC-item responsibility. This insight allows end users to spend more time determining root causes and proactively improving their OTIF scores through optimization of the supply chain.
Today’s insights and ongoing analysis can improve the likelihood of success in the future. With RSi, your team can evaluate your Supply Chain’s OTIF exposure with the current thresholds, as well as be prepared for future thresholds as Walmart’s compliance expectations continue to increase.