Walmart reduces carrier requirements for OTIF Shipments
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FTR’s Trucking Conditions Index falls to lowest level since last September U.S. rail carload and intermodal volumes are mixed, for week ending May 11, reports AAR Cass Freight Index points to annual shipments and expenditures declines ALAN opens up its nominations for 2024 Humanitarian Logistics Awards U.S.-bound import growth remains intact in April, reports Descartes More NewsWalmart is loosening its restrictions for suppliers, with a recent announcement that the retailer has revised its On-Time In-Full (OTIF) requirements. As of Feb. 1, Walmart has reduced supplier requirements from the 98% on-time and in-full bar established in 2020 to 90% for on-time and 95% in-full.
While the retailer didn’t give a reason for the change, Andrew Lynch, CEO of Zipline Logistics, said he suspects it has something to do with carriers not being able to keep up.
“Our speculation is that Walmart’s late delivery fees were becoming too big of a revenue stream for them as carriers struggled to meet the strict guidelines,” said Lynch. “Walmart doesn’t want to be making its money from fines. What Walmart really wants is for its suppliers to have well-functioning supply chains where they save money on transportation and fines, so that their products are competitively priced for Walmart and on time to store shelves.”
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