Effective February 2017, Walmart is requiring its suppliers to meet either a same-day or two-day shipping window instead of its previous four-day window. It has also upped its required compliance rate from 90% to 95%.1 The transition to On-time In-Full (OTIF) differs from Walmart’s previous Supply Chain Reliability (SCR) compliance. OTIF is not only based on an on-time performance of purchase orders, but now fill rate. e2open has already partnered with customers to develop a capability to accommodate these new On-time In-full (OTIF) metrics.
On March 23, 2017, e2open hosted a “Got OTIF? – See What We Have” user group session for users to discuss their understanding of Walmart’s new OTIF compliance program. It also covered what metrics/tools are available to assist them in their management of the program. The session had approximately 27 users across 10+ customer teams/companies represented onsite at e2open’s Rogers, AR office as well as via web conference. Two customer partners were recognized for their vision and partnership in developing and validating the metrics/tools with e2open.
e2open’s current OTIF package offers:
- 12 new attribute/metric families that mirrors the building blocks of Walmart’s OTIF scorecard.
- Ability for users to pull up-to-date performance quickly with real-time, ad-hoc drill-down capabilities.
- Historical measuring that allows users to look back at year-over-year performance.
A Sales Team Lead who attended the session had the following comments on the session:
“On-Time and In-Full is a measure of a supplier’s ability to ship product within a certain window and filling the order based on cases ordered. Walmart has made the recent change from SCR compliance to On-time In-Full (OTIF) compliance. The new OTIF measure ensures the right product is at the right place at the right time. Given in-stocks are highly important to Walmart, they want to hold suppliers accountable for delivering product on time and in full to ensure Walmart has the product for its customers. It’s an important part of becoming a partner with Walmart. Walmart expects suppliers to work diligently cross-functionally within their organizations and with their carriers to reach these goals.”
“e2open had developed a program which calculates OTIF, but allows for historical measuring. I feel it is important to be able to track your success (hopefully) and share with Walmart the hurdles you, as a supplier, have overcome.”
“The definitions of each of the measures and how they were working to calculate them was helpful as all of the definitions haven’t been 100% clearly communicated. The difference of Old SCR and OTIF was very insightful.”
“I shared with the team the notes that I took and that e2open had developed a program which calculates OTIF, but allows for historical measuring. I feel it is important to be able to track your success (hopefully) and share with Walmart the hurdles you, as a supplier, have overcome.”
e2open’s On-Time-In-Full (OTIF) package is currently being piloted by customers. It will be officially released in e2open’s 17.2 Product Release in May. If you are interested in learning more, please contact us.