A supplier approached us for help reducing excessive fines related to shipping on-time and in-full (OTIF).
The supplier had been experiencing these fines for nearly a year when they came to us in late 2021. The High Impact team partnered with the supplier’s internal supply chain managers to perform a root cause analysis. Our team swiftly identified several key factors that were creating complexity for the supplier -- shipping from multiple ship points, utilizing both LTL and FTL, and coordinating between two departments at Walmart.
Our team completed a lead-time analysis for both departments, scheduled weekly calls to ensure alignment, implemented best practices, and remained nimble to make real-time adjustments. We also collaborated with the supplier’s production team to improve forecast accuracy and inventory allocation so that products could be delivered to Walmart on-time and in-full.
Through this focused task force, our supplier partner’s OTIF fines were reduced by $127k versus the previous year!
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