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Walmart’s On-Time, In-Full (OTIF) logistics compliance program has changed shipment stakes for today’s suppliers. If shipments are not received 98% OTIF, suppliers are fined 3% of the cost of goods. These fines can multiply quickly, leaving suppliers accountable for significant and unanticipated fees. Walmart is one of many retailers enforcing strict delivery requirements and compliance regulations, and the implementation of these is sure to continue with other retailers. This is why there has never been a greater sense of urgency for suppliers to build more transparency, agility and control across their supply chains.

Key Strategies for Compliance

Below are key strategies for driving continuous compliance, mitigating costs and increasing presence at retail.

Find the Right 3PL

Asset-based 3PLs own and operate their trucking fleets, warehouses and technologies. This allows asset-based 3PLs to pivot faster, provide greater transparency and drive agility throughout the entire supply chain. This control is passed on to suppliers who benefit from increased visibility and better decision-making capabilities to drive continuous compliance and eliminate fines. Importantly, it also eliminates middle-man costs passed on by 3PLs who outsource their warehousing and trucking to other companies.

Your 3PL partner should also have deep relationships with today’s retailers – relationships that provide suppliers with insights to drive seamless integration into retailers’ systems. These insights provide suppliers with critical knowledge that drives optimization of process and costs while developing stronger relationships to increase retail presence and sales.


Work With a Technology Innovator

Real-time, data-driven insights and increased visibility are essential for improved decision-making and managing supply chain performance. Working with a 3PL that offers platform technology solutions, real-time insights and on-demand reporting is critical for improved visibility and control – and essential for driving consistent OTIF performance. From placing orders, to real-time inventory status, to product tracking – the right 3PL should provide customized, proprietary technology solutions that drive total supply chain optimization and consistent regulatory compliance.

Leverage Retail Consolidation

Retail consolidation is a simple concept that yields transformative results. Suppliers leverage economies of scale by sharing truckloads with other suppliers to create a single, full truckload to the same retailer distribution center. It enables suppliers to simplify their supply chain, maintain in-stocks and drive OTIF performance. With the reduced out-of-stocks, suppliers also realize increased sales at retail. This approach creates the most efficient route to retail by eliminating redundancies, reducing total transportation costs, improving supply chain performance and eliminating retailer fines.


Mastering Retailer Compliance

OTIF stakes will only continue to get higher as more retailers adopt stricter regulations to meet evolving consumer demands. The time is now for suppliers to find a 3PL that delivers agility and transparency while mitigating cost layers; provides customized technologies for seamless integration into retailers’ systems; and offers programs, such as retail consolidation, to drive significant cost savings, presence at retail and consistently deliver high OTIF performance. With the right 3PL partner, suppliers will master compliance and supply chain optimization.

Learn how RJW can help you meet OTIF and SQEP requirements, while turning your retail supply chain into a business growth driver.

Learn how RJW can help you meet OTIF and SQEP requirements, while turning your retail supply chain into a business growth driver.

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