Pharos helps illuminate the potential of low OTIF scores so you can make adjustments quickly and ensure compliance.
On-Time In-Full (OTIF) is a key performance indicator for supply chain, fulfillment, and distribution. OTIF measures the efficiency of the fulfillment and delivery process. A high OTIF score reflects that a supplier is delivering ordered cases to Walmart DCs, Stores, and Fulfillment Centers in full and within the POs MABD window. A low OTIF score can be driven by several factors that require regular performance reviews and root/cause analysis. If left unaddressed, a low OTIF score could lead to monthly fines for not meeting Walmart’s KPIs.
An established supplier in a high-velocity dry grocery category was struggling with overall OTIF scores below goal. They ship through two different supply chain streams within Walmart's network, and unraveling the cause of low OTIF scores was a top priority. Store-level in-stocks were being negatively impacted. Identifying and correcting the issues was a high priority with the supplier as well as the Walmart buyer and replenishment team.
Because the supplier ships using Walmart's collect logistics network, it was critical that we be able to research aspects relating to logistics and carrier issues, without access to Walmart's logistics and carrier network. We used the Pharos OTIF dashboard to identify the root cause and develop and recommend solutions to Walmart that ultimately solved not only the low OTIF scores, but also led to increased availability in stores. We were able to analyze the details of the non-compliance and found that the causes of low scores were related to a small portion of the business that was being disproportionately impacted by carrier and pickup/delivery issues. By being able to drill down not only to item-level but all the way down to PO level, we were able to provide specific examples and details to Walmart's transportation team. This allowed Walmart to correct issues within their carrier network and to implement changes with logistics settings on the specific items that drastically improved OTIF compliance.
Consistent OTIF compliance allowed the Walmart buyer to gain confidence in the supplier's ability to support inventory needs and led to increased sales. With reliable and consistent on-shelf availability, OTIF scores increased by over 48% and in-stocks increased from 80-85% to 98%!
OTIF truly is the crucial Walmart KPI for evaluating the shipping experience that your business offers to customers. Pharos gives you the weekly visibility you need to track performance, proactively root out potential risks, and ensure ongoing best in class performance with your deliveries to Walmart.
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