**OTIF** stands for **On Time In Full** and is a key performance indicator (**KPI**) of your products’ supply chain. OTIF is a crucial measurement of how well your operations team fulfills your orders according to the requirements of your customers. Failing to fulfill your orders within the designated delivery dates, and with all of the ordered items, can result in costly fees. 

Ever wondered how you could explain OTIF using eggs?
----------------------------------------------------

Check out this infographic, which explains the complexities of Walmart’s compliance program (like you described it to a five-year-old).

![OTIF Explained Infographic](https://lh3.googleusercontent.com/vw4_cwoPb9yy34RcVASU_X3KXdmgOy8hrgB2EI_NeFCp200YfGBfPl2L6EC-HNo6DZ-801pZehOzRuZ3-t_INv0pM2NcQ0szTEGkK1gxncNjwJqC_0rIi7EWRiEL36yUDUUU8NbW=s0)

Stay tuned for Part 2, where we break down [**why OTIF is important**](https://supplierwiki.supplypike.com/articles/why-is-otif-important/) and how it is measured. 

[![Find success in your data. Take the tour. ](https://lh4.googleusercontent.com/YNqQTr06fPMh8jUMX9L-SPPRGDIoTTGT68aReTZw8cfSiNEXKnkTrzj7wy3GMDrBd4sRGhQdoj9nzjQe7ik2OyQy3-MbT3fhJTw3L-xHIaB93AexpAtUyhmGDK6Gen6lLJtP6AwG)](https://www.supplypike.com/otif)

How To Explain OTIF To Your 5-Year-Old

Not complying with your retailers’ OTIF requirements can be very costly, and result in hefty fines. For example, Walmart fines its vendors **3% of the cost of goods sold** if the order fails OTIF requirements. In 2016, Target stores increased their OTIF penalties to 5% of the order cost, five times what it previously was. That kind of money adds up!

Having your product in stores according to your sales forecasts and correctly stocking your product helps maintain or even increase your sales and overall profit margins. According to recent Walmart data, poor In-Full performance accounted for **$1.7 billion in lost sales** during the 2019 fiscal year.

* * *

The formula for your OTIF score:
--------------------------------

OTIF ( % ) = number of cases on time in full ÷ total number of cases ordered \* 100

**Note:** Orders can be split and still comply. If an order has two separate delivery dates, consider each delivery separately. Check with your purchaser before breaking up orders to make sure they accept split shipments.

![Walmart OTIF metrics as of 2020](https://media.graphcms.com/XJfDCuk3T9O0TWB1BKRp)

* * *

The Walmart OTIF Program
------------------------

Walmart breaks down OTIF into separate metrics, **On Time** and **In Full**. Each metric has its own percentage goal that must be met in order to avoid fines. The metrics that apply to you differ based on whether you manage your own transportation (i.e, “**Prepaid**”) or Walmart picks up the product from your facilities (i.e., “**Collect**”).

For Prepaid shipping, **98%** of your ordered cases must arrive on time. For Collect orders, **98%** of your ordered cases must be confirmed on time and ready for pickup by Walmart.

Finally, the In Full percentage goals are across all merchandising alignments so that you must ship in full for **98%** of all ordered cases regardless of what department you are in.

[![Find success in your data. Take the tour. ](https://lh4.googleusercontent.com/YNqQTr06fPMh8jUMX9L-SPPRGDIoTTGT68aReTZw8cfSiNEXKnkTrzj7wy3GMDrBd4sRGhQdoj9nzjQe7ik2OyQy3-MbT3fhJTw3L-xHIaB93AexpAtUyhmGDK6Gen6lLJtP6AwG)](https://www.supplypike.com/otif)

Why Is OTIF Important?

Learn about: 

*   How your OTIF score is calculated
*   The main categories of OTIF
*   Key terms to understanding your business’ On Time and In Full score

* * *

Walmart’s **On Time In Full (OTIF)** program is a rigorous scoring system that tracks inbound performance by various levels of business. So let’s take a look at the fundamentals of OTIF.

How is OTIF calculated? What is included in my OTIF score?
----------------------------------------------------------

Walmart generally calculates OTIF by dividing the total number of **Vendor Packs**, or cases, that the Distribution Center (DC) receives within the delivery window by the total number of cases ordered. Walmart no longer grades suppliers on a single OTIF metric, though it is still tracked and available. Rather, suppliers must meet each OTIF-related metric to avoid fines.

Walmart does not consider **overages** in this calculation, so it only calculates shipments that are missing cases or haven’t been filled at all. Additionally, Walmart does not include purchase orders (POs) for import merchandise, Sam’s Club, e-commerce, and direct-to-store deliveries (DSD) in its OTIF metrics or suppliers’ scores.

What is the difference between Prepaid and Collect?
---------------------------------------------------

Walmart orders fall into two categories: **Prepaid** and **Collect**. 

Prepaid orders are shipped **by you**. This means you are in charge of scheduling a carrier of your choice to pick up and deliver your order to the Walmart DC. You also are responsible for creating the delivery appointment at the Walmart DC so they know when your shipment will arrive.

Collect orders are picked up **by Walmart**. This means a Walmart truck or third party carrier dispatched by Walmart picks up the product at your warehouse and Walmart takes the responsibility of getting your product to the Walmart DC. You are still responsible for scheduling a pick up appointment, also known as a request for routing, with Walmart. Your product must be packaged and ready at your facility for the pickup, otherwise this will impact your OTIF score. Scheduling the pickup appointment and having your product ready is referred to as being **Collect Ready**.

What does it mean to be On Time?
--------------------------------

A PO is considered On Time if the **Arrival Compliance Date** is within the delivery window. An Arrival Compliance Date falls under one of two scenarios:

*   You schedule a delivery appointment ahead of time, and whenever the product arrives at the DC, the PO will receive an **Arrival Gate Timestamp**, which will be considered your Arrival Compliance Date. This will determine whether the PO is “On Time”. 
*   You fail to schedule a delivery appointment ahead of time and Walmart will not document an Arrival Gate Timestamp. Walmart instead will consider your product delivered when they process your shipping documentation, which may be days after the product actually arrived. The day they process the documentation is referred to as the **Pro Date**, which will be considered the Arrival Compliance Date and will determine whether the PO is “On Time”. 

What does it mean to be In Full?
--------------------------------

A PO is considered In Full if Walmart receives 100% of all ordered cases. If the amount of cases received is less than the number of cases ordered on the PO, then the PO is considered Not-In-Full.

Walmart no longer differentiates In Full metrics for different business units.

[![OTIF in a Snap. Get started today. ](https://lh4.googleusercontent.com/iLtXXNCpNDOxLKkAoXqplS9hZSi80lop9Jak43HHsjEcTai596HfWrKrSBtuPs2dkxjmp8b-CkuIsMxO95W82oR-RZhMX1TlGSxfPxuooNsMe4l3CS5Luq6wxYPVC0YDiFtDvrQP)](https://www.supplypike.com/otif)

What is MABD? What is Order Quantity?
-------------------------------------

The MABD is the Must Arrive By Date of a PO. You’ll see this term a lot in relation to OTIF and will always be on your POs.

*   The **Original MABD** is the Must Arrive By Date that is assigned to the PO when the order is created.
*   The **Adjusted MABD** is the Must Arrive By Date that is assigned to the PO when the order arrives at the DC.

The Order Quantity is the amount of product Walmart is requesting from you. This is the total ordered quantity listed in the CTT segment on the **EDI 850 Purchase Order**.

*   The **Original Order Quantity** is the quantity of cases ordered on the PO when it is originally created.
*   The **Adjusted Order Quantity** is the quantity of cases ordered on the PO when the order arrives at the DC.

Essentially, the adjusted fields take into account changes made to the PO before it gets delivered, specifically changes to MABD and ordered cases on the PO, whereas original MABD and order quantity are based only on those values at the time the PO was created.

**_[Related Reading: Walmart OTIF Metrics](https://supplierwiki.supplypike.com/articles/walmart-otif-metrics)_**

What are delivery windows?
--------------------------

Delivery windows are the date during which DCs must receive a shipment. Walmart bases its delivery windows on the **Must Arrive By Date (MABD)**, transportation type, and distribution center type.

### New 2021 delivery windows\*

_\* Starting the week of 3/27/2021_

*   The delivery window for live appointment POs is **exactly the MABD**, not a day before or after.
*   For drop trailer POs, the delivery windows are as follows:
    *   **Perishable for all modes of transport**: exactly the MABD 
    *   **High-Velocity DC (HVDC)** and **Automated Consolidation Center (ACC) POs for all modes of transport**: the MABD or the day before
    *   **Regional DC (RDC)**, **Fulfillment Center (FC)**, and **Fashion DC (FDC)** POs for **Full Truckload shipping:** the MABD or up to two days before
    *   **RDC**, **FC**, and **FDC** POs for **Less-Than-Truckload shipping:** the MABD or up to three days before

![2021 OTIF Delivery Windows](https://lh3.googleusercontent.com/vwEcu_QpTKz_pm3A_hIBZOGOq2_V2JNErfeoKoZGsjTjjqlikpxSLHRhvkV_lQE6BkAF0VhR6Z6yP10hJQFXVyyu_e6RT9Ld59BA9Paeh6JyDEb6p9YMhAQy9U-A5_2GOijr8AIZ)

2021 OTIF Delivery Windows

What is the difference between a System-Generated order and a Manual order?
---------------------------------------------------------------------------

A PO’s event code is used to determine if the PO is system-generated or manually-created. For grocery POs created with DCS2000, the Create User ID and Create System ID fields are used to classify the PO as manual or system-generated.

**System-generated POs** are measured against the original MABD and the original order quantity to determine whether the PO was on time and in full. POs with the event code of POS REPLEN, PICKNPACK, 2-TIER, and “ “ are considered system-generated orders. Canceled system-generated POs **will** count against your OTIF score, with accountability assigned to you or Walmart depending on the cancel reason code used for the cancellation.

**Manually-created POs** are measured against the adjusted MABD and adjusted order quantity. POs with event codes that are not considered system-generated event codes (i.e., the ones listed above) are considered manually-created POs. Canceled manually-created POs do **not** count against your OTIF score.

[![Get readable drill down analyses. Let us Help you. ](https://lh3.googleusercontent.com/i47HLO-VXoqq_EXNFD8_9Unsvi_4LJnWAKTy6d3A7lQPZ8g5-VOxGS4TnXeYTT6vllohXpML6nwwAPbaV45Y6t5PT3PuzRIM-W9UEt_YH7AmY4AkKT_WRtoLvGl--4PVfqNjzO8l)](https://www.supplypike.com/otif)

What is Lead Time?
------------------

Lead time is the measurement of time it takes for an order to be received, processed, and fulfilled by you and delivered to the DC. Lead time settings help determine the MABD on each PO. Lead time is calculated by adding four components: Supplier Process Time, Ship Interval, Transit Time, and Process Time at the Walmart DC.

The **Supplier Process Time** involves two steps, and the “clock” starts when Walmart sends you the PO via an EDI 850 Purchase Order. If this is a Collect PO where Walmart picks up the product from you, then the first step is for you to complete a Request for Routing by 4:00 PM CST the day after the order is transmitted. Next, you will need to get the shipment ready by producing the order, packaging it, stacking it, and wrapping it.

The **Ship Interval**, also called the “Pickup Window”, begins once the shipment is ready to be collected and ends when the shipment is picked up from your facility.

The **Transit Time** begins when the shipment is picked up by the carrier, either your own or Walmart’s. It is different for each supplier depending on the geographic location of their ship points, department, PO type, and other aspects.

The **Process Time at Walmart DC** begins when the shipment arrives at the DC and ends when the PO is marked as “received” by the DC.

Accurately calculated lead times are crucial to delivering on your MABD. Work with your replenishment team to ensure that lead times are accurate. If your internal systems are consistent, reliable, and efficient, this will also help your OTIF scores improve. Looking for a way to improve these systems? Check out [**SupplyPike’s OTIF tool**.](https://www.supplypike.com/otif)

[![Take the Guesswork out of OTIF. Schedule a tour. ](https://lh3.googleusercontent.com/OPXTmQz-6hZOwEtnMCT2eX-t5ecotrI-SkseeU3YmcHPRjTV1977yRXwCrj-v5lIE7vF8WHhCN33P447R83__tYzsu_qL8ydW_dWsP6bo8UT0gyQSK7iuUzqSbgtUiI1EcCRZ9ws)](https://www.supplypike.com/otif)

Walmart OTIF Fundamentals

### Explained in Plain English

Learn about:

*   The changes to Walmart’s On-Time In-Full (OTIF) program
*   Prepaid-specific expectations
*   What the changes mean for suppliers

* * *

On September 1, 2020, Walmart announced changes to its  On-Time In-Full (OTIF) program.

**The new OTIF goals will apply for all orders with a Must Arrive By Date (MABD) of September 15, 2020, and thereafter**. The new requirements affect purchase orders due in the middle of Walmart Week 33 – the next to last week in the September OTIF month.

**Note:** This change does **not** affect Order Defect Rate (ODR) for Marketplace sellers. However, Walmart is starting to integrate the OTIF and OMNI programs so that e-commerce suppliers must meet OTIF goals.

The new OTIF goals do not affect suppliers for Sam’s Club, Walmart.com, direct-to-store deliveries (DSD), Import, and Walmart International, which have separate compliance programs. However, Walmart does have plans to incorporate other types of orders into scope in the future.

New 2020 Walmart OTIF goals
---------------------------

Walmart’s monthly OTIF goals for US suppliers are as follows:

*   **On-Time: 98%**
    *   **Prepaid On-Time** (i.e., when the supplier manages the transportation): **98%** of all cases delivered arrive on time **at the distribution center.**
        *   This goal includes Less than Truckload (LTL), Full Truckload Shipping, and Mix of Full Truckload and Less Than Truckload.
        *   In other words, Walmart expects _all_ Prepaid orders to fall within this goal.
    *   **Collect Ready** (i.e., when Walmart manages the transportation): **98%** of all cases are ready for pick up by the appointment time.
        *   Walmart does **not** expect Collect Ready Suppliers to deliver the order on time to the DC or store. This responsibility falls into Walmart’s accountability bucket.
        *   The supplier must make sure that Walmart can pick up the entire order by the appointment time.
*   **In-Full: 98%**
    *   General Merchandise: **98%** of all cases ordered are delivered
    *   Health and Wellness: **98%** of all cases ordered are delivered
    *   Food and Consumables: **98%** of all cases ordered are delivered

![New 2020 OTIF Goals](https://media.graphcms.com/fHbCXumtTqe8Sfqk0mTC)
*New 2020 OTIF Goals*

To sum up, Walmart has changed the goals so that every order, **regardless of merchandising alignment or shipment type**, must meet the **98% goal.** This means that suppliers must fill 98% of all orders entirely. Additionally, suppliers must ship 98% of all cases within the delivery window (for Prepaid suppliers). They must route and ready 98% of all cases by the PO’s appointment time (for Collect suppliers).

The changes affect Prepaid LTL suppliers the most with a 40% increase to the On-Time goal from 70%. Prepaid FTL suppliers will see a 12% jump for their On-Time goal, up from 87.5%. In-Full goals increased by 3% for General Merchandise and 0.5% for Food and Consumables. Collect Ready goals have also increased by 3%.

For Prepaid Mixed FTL and LTL, there is no longer a “blended goal.” Regardless of how suppliers ship their products, the On-Time goal is 98% across the board.

If orders fail to comply, Walmart will charge the supplier **3% of the cost of goods sold (COGS)** of non-compliant cases that go to stores and shipped e-commerce units. Walmart has not specified a minimum fine threshold for OTIF non-compliance to receive an actual fee.

[**_Related Reading: How to Explain OTIF to Your 5-Year-Old_**](https://supplierwiki.supplypike.com/articles/how-to-explain-otif-to-your-5-year-old/)

### OTIF calculations

The way Walmart calculates OTIF has not changed. Walmart measures OTIF based on the original PO order quantity and original MABD for system-generated orders. For manual orders, the calculations use the adjusted PO order quantity and adjusted MABD. Cases received in excess still go into the “Overfilled Cases” metric on the scorecard.

### Prepaid expectations (updated 3/26/2021)

Prepaid shipping has different compliance “**delivery windows**” that suppliers must consider to meet their On-Time goals. These windows depend on the transportation method and product network. The new 2021 delivery windows _(starting the week of 3/27/2021)_ are as follows:

*   The delivery window for live appointment POs is **exactly the MABD**, not a day before or after.
*   For drop trailer POs, the delivery windows are as follows:
    *   **Perishable for all modes of transport**: exactly the MABD 
    *   **High-Velocity DC (HVDC)** and **Automated Consolidation Center (ACC) POs for all modes of transport**: the MABD or the day before
    *   **Regional DC (RDC)**, **Fulfillment Center (FC)**, and **Fashion DC (FDC)** POs for **Full Truckload shipping:** the MABD or up to two days before
    *   **RDC**, **FC**, and **FDC** POs for **Less-Than-Truckload shipping:** the MABD or up to three days before

![OTIF Delivery Window Expectations](https://media.graphcms.com/wq17LDQKR2yqQ1b3vFip)

*OTIF Delivery Window Expectations 3-27-2021*

Prepaid POs which fall under Walmart’s **private fleet program** are different in that they must be On Time **and** Collect Ready. The PO must be ready for pick up on the dock by the appointment time to fall under the On-Time goal. POs that are late due to a Supplier Ship Point failure will fall into the Supplier Accountability bucket, and therefore, will have fines associated with them.

Additionally, **prepaid backhaul POs** must comply with Prepaid On-Time goals in addition to Collect Ready goals. In other words, these POs must be ready for pick up on the dock by the appointment time. Otherwise, the order will fall into the failed Supplier Ship Point bucket.

[**_Related Reading: Walmart OTIF Fundamentals_**](https://supplierwiki.supplypike.com/articles/walmart-otif-fundamentals/)

What these changes mean for suppliers
-------------------------------------

Walmart is holding its suppliers to a much higher standard for compliance than ever before. It expects suppliers to fulfill orders entirely within tight delivery windows nearly every time. The changes are also occurring mid-week in the middle of the month, whereas Walmart typically levies OTIF fines monthly. 

Walmart’s OTIF Scorecard does not display detailed PO data older than four weeks. Suppliers may only view up to four weeks before the current week, a four-week snapshot of their scores, the current month to date, and the previous month. The only data available in the PO Summary on the OTIF Scorecard is within a four-week timeframe.

Many suppliers may consider switching from Prepaid to Collect, especially those who ship LTL. Third-party logistics companies and carriers will need to up the ante on shipping on time, and warehouses will need to ensure they are fulfilling orders completely. OTIF fines can be severe, and they add up. Suppliers should look into holding their third parties accountable for low OTIF scores.

How this changes SupplyPike’s OTIF Radar
----------------------------------------

SupplyPike is updating [**OTIF Radar**](https://www.supplypike.com/otif) to account for these changes to OTIF goals. We are working diligently to ensure that OTIF goals are well-defined, up-to-date, and available readily. We store our data indefinitely so that you can see your historical scores and never miss an insight.

With these new changes potentially bringing significant fines to your bottom line, it’s now more important than ever to have a detailed across your supply chain perspective on OTIF performance to isolate, identify, and resolve any lackluster performance areas.

OTIF Radar by SupplyPike provides just that by automatically combining multiple data sources to give you new and powerful insights into OTIF performance. Hold your third parties in the supply chain accountable for their specific performance and impact on your fines with clean and easy-to-access data on each party. 

![OTIF Radar Dashboard](https://lh5.googleusercontent.com/bKaY91TzVokV2qkxppDUdkWmkD5cPv-A9uCeSCoVWRJQpbcTvVwQr2PMZjBUscnJbfCFnkOkZIAVurHMDWEkFzlzUMJ0p_coBu__lz04eg_9ygPG137SmoWD-1LR9QPnLEufAwyd)

*OTIF Radar Dashboard*

![OTIF Radar Fines Over Time](https://lh6.googleusercontent.com/CujDQEfsYcfUM0tAtPMCDXTmVlXDr0PMJ8N968xfcEDRyK74dvUFnqBTcLIkaud3lsZ5HCWfFoaZ5eZrDzwsTh1xMhy48lfWwzuiZWZVvvame3mhnNN3Uu_HnUnEHxU3yErHPAxE)

*OTIF Radar Fines Over Time*

SupplyPike monitors and will notify you of any OTIF rule changes so that you can rest easy. OTIF rule changes are also applied appropriately in the OTIF Radar app, so you are always up to date on the latest compliance goals.

[Start your **free 14-day no-risk trial!**](https://www.supplypike.com/otif)

[![OTIF always up-to-date](https://lh6.googleusercontent.com/YWGT8fL3FXIeAEylEkeoKyaQr_ivRcgpO0n3rYbBuofNlAnb-Qs7VcH0JCS9QvdBbznImEe7xZ8rKHFbu1MDzNUUr0M0TJmnxsybUquETHXPoja46YC60hZ4fRsBlRSCZ2zMLwTD)](https://www.supplypike.com/otif)

New 2020 Walmart OTIF Changes

Learn about:

*   How Walmart measures its OTIF goals
*   On Time compliance issues
*   In Full compliance issues
*   Collect Ready compliance issues

* * *

We’ve discussed the [**basics of OTIF**](https://supplierwiki.supplypike.com/articles/how-to-explain-otif-to-your-5-year-old) and the **[fundamentals of OTIF](https://supplierwiki.supplypike.com/articles/walmart-otif-fundamentals)** before, but we thought we’d drill down deeper into the individual metrics. First, we’ll start by reviewing the basic goals of OTIF, and then we’ll dive into each metric and the compliance issues of each metric. 

We are only covering **Supplier Accountability** OTIF metrics. Please note: There are some OTIF issues that are listed as **Walmart Accountability**, but for the sake of clarity, we will not be discussing those. For more information, check with your buyer.

Goals
-----

Walmart’s monthly OTIF goals that suppliers are responsible for are as follows:

*   **On-Time: 98%**
    *   **Prepaid On-Time** (i.e., when you manage the transportation): **98%** of all cases delivered arrive on time **at the distribution center.**
        *   This goal includes Less than Truckload (LTL), Full Truckload, and Mix of Full Truckload and Less Than Truckload.
        *   In other words, Walmart expects _all_ Prepaid orders to fall within this goal.
    *   **Collect Ready** (i.e., when Walmart manages the transportation): **98%** of all cases are ready for pick up by the appointment time.
        *   Walmart does **not** expect Collect Ready Suppliers to deliver the order on time to the DC or store. These orders fall into Walmart’s accountability bucket.
        *   The supplier must make sure that Walmart can pick up the entire order by the appointment time.
*   **In-Full: 98%**
    *   General Merchandise: **98%** of all cases ordered are delivered
    *   Health and Wellness: **98%** of all cases ordered are delivered
    *   Food and Consumables: **98%** of all cases ordered are delivered

For more on this, check out our **[Why is OTIF Important?](https://supplierwiki.supplypike.com/articles/why-is-otif-important)** blog post.

OTIF Compliance Issues: On Time 
--------------------------------

On Time compliance issues for **“Prepaid”** are for times where you manage the freight. In these instances, you own the On Time accountability.

### Prepaid Early Delivery

Cases on an order are designated **“Prepaid Early Delivery”** if the cases were delivered to the distribution center (DC) before the Must Arrive By Date (MABD) window. Early deliveries can be bad because they cause congestion in Walmart’s DCs and can actually result in the order arriving late to the store.

### Prepaid Late Delivery

Cases on an order are designated “**Prepaid Late Delivery**” if the cases were delivered to the DC after the MABD window. Late deliveries can be bad because they can cause replenishment and stocking issues. You want to make sure that your product is always stocked and having on time deliveries will help with that.

### Prepaid Unscheduled Appointment

Cases on an order are designated **“Prepaid Unscheduled Appointment”** when the cases arrive on a truckat the DC without a delivery appointment. Because the shipment did not have a delivery appointment, the Pro date will be considered the Arrival Compliance Date. This Pro date represents when shipping documentation is processed and may be days after the actual goods arrive. Scheduling DC appointments is something typically done by you or your carrier/3PL. Scheduled appointments are important so that the DCs know what to expect and can plan accordingly.

For more information on MABD windows, check our [**OTIF – How To Meet Delivery Appointments**](https://supplypike.com/blog/otif-how-to-meet-delivery-appointments/) article.

[![OTIF made to Order. Get started. ](https://lh5.googleusercontent.com/7fwoxsoYQOY2bDiOwlBeuHN2zviQr8aazjXoW3QcRTAl6_XchxESsD1W6n4-_u2uxSCHi1367Q3dMMzds6UxC-eUJp-7Xu4i1gXX5322kb7AVfedVWSDtOdjIdPF62ekWx8iUGna)](https://www.supplypike.com/otif)

OTIF Compliance Issues: Collect Ready
-------------------------------------

**Collect Ready** orders are instances where Walmart or a third party is in charge of picking up the order. Some compliance issues for Collect Ready orders go into the supplier’s accountability bucket, while others are owned by Walmart. Here are the ones that are the supplier’s accountability.

### Supplier Ship Point

The **“Supplier Ship Point”** bucket occurs when an order fails to be Collect Ready because the assigned carrier could not secure the load in a timely manner due to an issue caused by the supplier. This is based on a carrier EDI transmission reason code of **“Held by Shipper”**. 

This means that the carrier was not able to secure the product upon the pickup attempt due to a supplier-caused issue. For example, the facility may have been closed, there may have been too many trucks in line to pick up shipments, or the product simply wasn’t ready. In order to avoid accountability, you are required to submit a ticket to Walmart Transportation if a carrier does not show up for a pickup appointment. Either way, this compliance issue **will** count against your OTIF score.

### Late Transport Notification

You will see a **“Late Transport Notification”** if the Request for Routing was not completed in a timely manner. Requests for Routing should be submitted by 4:00 PM CST the day after receiving the order.

This means that the supplier failed to submit a request for routing by 4:00 PM CST the day after the PO was submitted by Walmart. This includes weekend days, so be sure that you’re able to route all POs the day of, and the day after, any of your order review days of the week. **Order Review Days** are the days of the week that you’ve told Walmart you can receive POs on. 

For manual orders, the expectation is to key the request 30 days prior to the MABD. If the order is received less than 30 days prior to MABD, the expectation is to key the routing request by 4:00 PM CST the day after receiving the order.

Specifically for D94 (Produce) items, System and Manual PO routing requests should be submitted at least two day prior to the ship-on day. If the order is received less than two days prior to the ship-on day, the expectation is to key the routing request on the day the order was received.

[![All the metrics you need. Take a tour today. ](https://lh5.googleusercontent.com/lNBSquifTLNVdyoh9C9SOhHPFQANTK4N_5pWvJswT1uutDlNXsr636jtSSOVg9TlGw5pjrTLwIGJYgV53_js_uoXh6B--VPmE_eUjud4vvMVVFm3sDrbHROAAWFebZ-pqHs7uGt9)](https://www.supplypike.com/otif)

OTIF Compliance Issues: In Full
-------------------------------

**In-Full** metrics measure the number of cases ordered against the number of cases delivered.

### Not In-Full

An order is considered **“Not in Full”** if the number of cases received was less than the number of cases ordered per PO line. System-generated orders are measured against the original order quantity. Manual orders are measured against the adjusted order quantity.

This means cases were not delivered to the destination as ordered. If a supplier cancels an entire PO or individual PO lines, the cancellation information is available to review in OTIF. Canceling a PO or PO line can be helpful as opposed to just not fulfilling an order with Walmart so that you can differentiate canceled POs on Not In Full issues from POs where you did not expect to be short. 

OTIF by SupplyPike
------------------

SupplyPike offers a deep dive into your OTIF scorecard, showing you all the metrics in an easy to digest format.

![Compliance Trends](https://lh6.googleusercontent.com/43hBj4Jdaxfe0n64fSbkbvblWGjWv5efqRifNSLRVTaOSZvA2PgtLxJfu5QZcSgJCsnxkmqoSA3ZDrzqm3oHllicb6F5JzJqnCqgPlYl34pcDVjFuC17w2BwR9hiEH3hxs1dlVrq)

Perform extensive analyses on each metric and find trends and root causes easily.

![Compliance Trends](https://lh3.googleusercontent.com/jxRnjI54lwFwaDVJ4S0SnP2d4dQ-PGgHd2J6X1sVH4rMa1H3TiNFDbWAxvomg2ta4IYuyeFN5STjmFkALDivVqGtwprIu7n7iBR3cXGPQdsid9tGyZfCGkXXXts9vynYXjd6yExs)

Want more? [Schedule a tour today!](https://www.supplypike.com/otif)

[![You've never seen OTIF like this before. Get your free trial. ](https://lh6.googleusercontent.com/FuWOWqtZ2rLm-_zaH0vLf9QaLCe2y003RqZNb2XKX-7EBIGgFpKswrUz4r-vUnAfqBCGhkYtAP9DcPHO5IGcrLe9WaS843hAlU04SFWFvKatuyomdBLkqppj8RC4WlMJK7awYqas)](https://www.supplypike.com/otif)

Walmart OTIF Metrics

Learn about:

*   The OTIF Scorecard in Retail Link
*   Downloading and filtering data
*   Viewing your OTIF performance, charges, and purchase order details

* * *

With Walmart’s announcement of [**new changes to its On Time In Full program**](https://supplierwiki.supplypike.com/articles/new-2020-walmart-otif-changes) in 2020, the retailer also rolled out a new app in its Retail Link software for suppliers.

The Retail Link OTIF Scorecard contains many options for analyzing your score and downloading data. This latest version of Walmart’s OTIF Scorecard is a much more user-friendly version than the previous one. 

Let’s walk through accessing the dashboard and the reports you can download.

The OTIF Scorecard
------------------

In Retail Link, select **Apps**, then select **On Time In Full (OTIF) Scorecard** to access the application.

![Retail Link – Apps](https://lh6.googleusercontent.com/-b-ASmFbCOScJxVD_xSmneR7HPBoZKPNYO8vWPWimBiVUA30e1XAPGQxvPQO-ckDAXDPDy8SR3mILjZkarUAxyi1uTetWyQR1es73xojJCnvZH1EZTCb6c4GHPpxLuxERZqKfufg)

_Retail Link – Apps_

Once you log into the landing page, you’ll see the **Summary** page with the below options across the top and down the left side of the page. Let’s cover them briefly.

![Retail Link – OTIF Summary](https://lh3.googleusercontent.com/RUSFEmpwUI8f4golVnOAAYv5_Mi0tqi6hgg9nntG1_8Ntcs4O9uE3zbqAu8OjvDHRZfehlI8I_gjhkoudZ73VJkNI9GE7DXla2kM_sd44sdp8b8k46w_m4zzTK1FohJarQ-M2twl)

_Retail Link – OTIF Summary_

**Top Menu**

*   The **Performance** tab indicates how your business performed across the latest updated week.
*   The **Charges** tab provides visibility to all OTIF fines that Walmart has invoiced and shows future projections of non-invoiced POs.
*   The **Help** toggle displays a button that explains what action each chart or filter provides.
*   The **Filter** option is a global filter to customize data. You can also save up to 10 filter settings.
*   The **Download** option allows you to download the current page view as a CSV or PDF file.

**Left Side Menu**

*   The bars icon provides the same view as the Performance tab above.
*   The sheet icon provides downloadable PO Details.
*   The question mark (?) opens the frequently asked questions page.
*   The megaphone shows Walmart announcements. It will also display as a banner across the top of the page at login.

Downloading files
-----------------

The process for downloading files applies equally throughout the OTIF Scorecard. If the download button below is visible in the top right corner of a page, then the contents of that page are available for download.

![OTIF Dashboard – Download button](https://lh4.googleusercontent.com/mRipBJszvMJ4tV1hn1uSYuTGe44r1L0HAWop48Aa64Tyu2NFpCuNk2ji0ppylww0J2c7WJig_RcvPc62rQ7UVreuRbIJYYtPoRZNhMjTPcwlKO1QleaW5g8ONLylbaIK1H46a05c)

_OTIF Dashboard – Download button_

When you click the Download button from the Summary page, you’ll get the option to select CSV or PDF. 

![Download options – CSV or PDF](https://lh5.googleusercontent.com/XpL1y69R6_hO436r2iSyqiaQWF7yAI-RT5PENCDDWFxvitRMExtDRXWGk4LvIAkRopaA9W_v06EYwgxfUgJrC-nvDMy4lz7z_fIxBhAqeiLOkq5GtpE6wWgZIQpkQ8SIuGncJmH_)

_Download options – CSV or PDF_

Downloading the Summary page as a PDF will return data as a chart.

![Summary – Performance as a PDF report](https://lh5.googleusercontent.com/914jUzZozGnVK63PbPPCaTFqwCaCZXk39DZtoLLUlN8aHmdRMzKoU60MXgFa_4xu1J54-mBTFvv0q9cslrfT4bkAyAFTICXmpY_yf9GunQyGz1a9WlLkfi2erJ5dDBKYnDvyhBjL)

_Summary – Performance as a PDF report_

Downloading as CSV will return the data as a file with tabs included for each data set, such as accountability information and distribution center performance.

![Summary – Performance as a CSV report](https://lh5.googleusercontent.com/vn58uW2ZMkTeXgkil2WB48TjSEu0RgRVB8CSo-fnlJODzVOcKNHVpI02pJfl9Q9AVlbj2xz16nXcCpn-DOcjS1M2lDP0HqiRNq2zXG90ysb9_Aj6WwNxu3FrtSaEqAFEa4xuVEwg)

_Summary – Performance as a CSV report_

Note – From the PO Details page, only the CSV download is available.

[![OTIF scores at your fingertips. Try it for Free.](https://lh5.googleusercontent.com/71iYmRN4cY_MUNK1eN8HXFRC8LzpYsk1E6tOmISBGcfaTyEZTsztXqKIBjXznbQKGO6ANDcAoptXJ4P2ax5ifOSVBb29PkIGd6pGkpHl_axOW4Bwi0tuURJ8GEb7Qux_YU4njtH5)](https://www.supplypike.com/otif)

OTIF Dashboard filters
----------------------

Let’s discuss filters and saving preferences. When you select the filter button, you’ll get the below filtering options:

*   Walmart Stores versus e-commerce
*   6 Digit Supplier number
*   9 Digit Supplier number
*   Vendor Pool ID number
*   Distribution Center Number
*   Freight Type (Prepaid or Collect)
*   Merchandising Alignment
*   Supplier Business Unit
*   Department
*   Category
*   Buyer ID

Use the dropdowns to filter the data you want to view. You can have as many filters as you want, and in all dropdowns, you may select multiple options.

Click the **Apply button** to execute. The page will load to reflect your selections. You’ll note there is now a number beside the filter, which indicates the total of filters applied to the current view

![OTIF Dashboard – Filter indicator](https://lh5.googleusercontent.com/WAY4vZxd28z6-aoA5NSOjx2_rk5T_uVdVEy0TKn5Q8SvvUZXW11WK20zROnphWv1gg5T1RghEjWhdGamo-E7gMn6wUdJnN0LL7L0IQixkp8bA5WoGmwDwF47_CxZSX8k1RhGiLcQ)

_OTIF Dashboard – Filter indicator_

![OTIF Dashboard – Filters applied view](https://lh6.googleusercontent.com/yaMylxqVvZDyUHOsaReIZn0CUsVi_nKtpS03j95Gj-18WQ9_eK3zIrEEfirnS1LneUjnAaNmemCrip_-3CBIY8sVKv3Q6YnehkrNdzXzr-OLSnZuUPGPA3NogLfIwTffOsaK8ZwN)

_OTIF Dashboard – Filters applied view_

To remove your selections, click the **Reset button** at the bottom.

### Saving and deleting filters

You can **Save** any filter by clicking the **Save As button** and naming it. You can save up to 10 combinations.

To delete a saved filter:

1.  Select the filter you wish to delete
2.  Click the **Manage button** 
3.  Click the **Delete Filter button**
4.  On the popup window, click the **Yes Delete button**

![Filters – Delete Filter button](https://lh3.googleusercontent.com/xDw780GSQKtc8HPMuAmxToOBITlF_9foZt7RQtFjjnJeIRUOh2T64SsUI6CIKg_8ZS5i3Khg7-T1pj3_LLCiZmBbjFv4QyDztNX3JuYKFfM4kU6lqRKdQ0njH16ZIKNjEFM30HTl)

*Filters – Delete Filter button*

![Filters – Delete confirmation window](https://lh3.googleusercontent.com/UOJYrABEfxkE8J74lMjiBsdX0OTVL9pPJcHm2bJHAL1siDvmff7BBbba8-cW_JzQbV_ZAokv_Zj1ZScuFRVhmTkIZu6sGzE4L6LEX1HL2ohFYezHGIuw_S5sfePWyWdu_9ZBMfgn)

*Filters – Delete confirmation window*

Summary page – Performance section
----------------------------------

Let’s review the Summary page Performance section.

You can filter this page globally by using the **Filter** option in the top right corner, as described previously in the filtering section. Directly below the download button, you have a view of the current filters you have selected.

The download button works the same way as previously discussed in the Download section. You can choose to download to CSV or PDF. It’s important to note that filters applied will impact what data you can download. To pull all data for a page, ensure the Filters applied is “**Total Company**.”

![Filters applied – Total Company](https://lh5.googleusercontent.com/p-bdtw7mgcpQx1pfuAATr9yBhfhcCFJzBm8RdC9ZgIAtqsicMbfBA9TqVDHEUbjiqHF_FFch1Muu5KrTkwBXV7Ynh466g5oAdblf1zorUTo-0Wo2tEII3qGweDZdzk5vMlrip6AN)

*Filters applied – Total Company*

The OTIF dashboard globally defaults to the latest Walmart week of data. In the “**Data displayed for**” dropdown, you can select historical weeks.

![OTIF Dashboard – “Data displayed for” dropdown](https://lh4.googleusercontent.com/cR_NLGoYhjLK44nub_OjQJcz0JCDhBgtpX_4wVqIit18mzyY4ZYXjIoAygKKo-zIOg0KLUl_ryxYSg_2LbLgp3Kj-N2_Y6Rw5s7o8UKDtxfEZYl64DxuJUGfHOn6VO8Z6YgIY6dU)

*OTIF Dashboard – “Data displayed for” dropdown*

You can view the first two charts, **On Time Accountability** and **In Full Accountability**, historically by using the “**Week**” dropdown selection.

The third chart displays Accountability, On Time Variances, and Trend Analysis. Click each tab name to view these metrics. 

![OTIF Summary – Accountability View](https://lh5.googleusercontent.com/v3DsEfTT6XWU0zOOs9Qo5TX9PRUPkTN9p_jfzUTuGDWxBzxAuxGH9xzfJeg9SW074DJIEFtK0ufzUvP86mK1JnqD3JQAY6sYdC-PKiInzMGKJ1TebqnVTcS6MaJEyXcqRriEN_p9)

*OTIF Summary – Accountability View*

![OTIF Summary – On Time Variance](https://lh3.googleusercontent.com/oqF1BCJaste8kh1WNXRoOwpug2Sug3k18YtFR5r3qFv_Cwk_jonbF4YbWuwHwMiLxyz8Dl4uxJtAU9JOCOPNIR9dtzHZjHXdHv3IbKS96C-vX2uGmde8LfMjO-RGYQu9UU9CRCZV)

*OTIF Summary – On Time Variance*

![OTIF Summary – Trend Analysis](https://lh3.googleusercontent.com/SmyZ2Gl8fuzLlidGph8HlI4tImigciMRR3EY_1PIbQo9MMojF9F5UfDn9N5WqmJs242JSMcrlIGyGZGxb-6KM_cPJ2Xjf2pSTVPXR8e4OLnckt0bUor7tKkYEXouCfQdL0wwB8GD)

*OTIF Summary – Trend Analysis*

**_[Related Reading: Walmart OTIF Metrics](https://supplierwiki.supplypike.com/articles/walmart-otif-metrics)_**

Additionally, there is a “**Show Me**” chart with two dropdown menus to view these three metrics in greater detail.

![OTIF Summary – Show Me chart](https://lh5.googleusercontent.com/n-6pCMTtCpkFFZNqINASs-CvyzqobaLMAVQPSpWPWekVbbC9cjyUC7vamzGRzBtfSH5-MUIJCKpAMVPsdnpqk71yzn1QnRygh3vVgzH5dbRJ_bzVsIeMcbTvPV_-HveAh27J88ob)

*OTIF Summary – Show Me chart*

You may filter this chart in many ways. You can change the views from **Top 10** (showing your best-performing metrics) to **Bottom 10** (showing your worst-performing metrics).

You may apply these business filters:

*   6 Digit vendor number
*   9 Digit vendor number
*   Merchandising Alignment
*   Supplier Business Unit
*   Department
*   Category
*   Distribution Center Number

[![OTIF without Retail Link. Take a tour.](https://lh3.googleusercontent.com/AppgseKkAapFddpLn9ms2uKAMURJ-Pl2ct5VNuj5XpE45CN46IM9ltL58wQWX8eefYCm3kvy4om7POwEkIZAGQWa5XjfBUc6VxWOg5Gt8q7HBQMmqygeiKPvJleTYB8OeeO7LlQF)](https://www.supplypike.com/otif)

Lastly, the DC Performance is also filterable and provides a plethora of detail. You can filter by **Location**, **Metric**, and **Network**. You can also filter by **OnTime**, **In Full**, and **Collect Ready**.

You’ll see dots depicting DC locations, colored green or red, depending on performance status on the map. Click on the dot, and more details will populate to the right side of the map.

![OTIF Summary – DC Performance map](https://lh5.googleusercontent.com/Cjy4Ekslmehvic7qYiGI8TK8N-0mrawMlRoTdG5wXeBeRcyqhFfUQF-9TmRYfG1m_vSHCNeDKaAmyE_Ko59h1NyKdZsIzqBHdUD_wQumQJxSy1rK-nENSdsBJ2ISujeSrx_U2b_c)

*OTIF Summary – DC Performance map*

Summary page – Charges section
------------------------------

While staying on the Summary page, let’s select the **“Charges”** button at the top of the page. As stated, Filters and Download functionality apply to this page as well.

Default is the latest week. The top chart provides a 13-month view of fines and additionally breaks it down by metric.

![OTIF Dashboard – Charges view](https://lh4.googleusercontent.com/ud6ndX7zbmR8jKERSYtWRSjHmTVf6F6oRajlWgqkzMEBy_EYEuuIraVN-s2HRva9FBgycTx0JP8aekYmp0C5RuO6fn0A2HPgtvlSCb05ZXGVvp0V4E5G066uBA6QvMbdXYr5SfCl)

*OTIF Dashboard – Charges view*

The second-row chart provides a breakdown by **Accountability** and **Merchandising Alignment**. Additionally, the “**Show Me**” chart provides additional analysis detail.

![Charges Breakdown by Accountability](https://lh5.googleusercontent.com/GL52KNFIKtvq3-59JuPLMXEGZkE4Xl14LkgBlon9bn-ENpjVM9cBjQD_PyGFmPbeX891Yrt5ErRP8W43QCPLGzYfYd6HttaVSqtQ5IZpFBGG6EYtWUmsfZNrtYjaFtzzPPJALI_6)

*Charges Breakdown by Accountability*

The third row is your “Trend Analysis.” This option provides a view of “All Metrics.” You can also filter by three 13WK (weeks) ranges and compare those to the same period Last Year.

![Charges Summary page – Trend Analysis](https://lh4.googleusercontent.com/hFAFP0AJkX_Z52JevdfrJFPQ9lQbAOJ71UhDjoUPuIMYzObIV_kHDvjXx_BfreSO2uyAJ2G3fuFu65fQrENT5Z8fg8tDG1Pv7XT1-Nb5bHv8dM4Xpfmm_BaXwBy1NNlqQ7oo-Lux)

*Charges Summary page – Trend Analysis*

**_[Related Reading: OTIF Best Practices](https://supplierwiki.supplypike.com/articles/otif-best-practices)_**

PO Details page
---------------

Now let’s move to the side menu, and look at the **sheet** icon. 

![Side menu – Sheet icon for PO Details](https://lh5.googleusercontent.com/OhNSRyL7kpNlCXwiV4JCDSZac3o3JqdiNdLof0rLdy6wsHGtUfZ2j218Eirt9Tqab9i0RvJJIUdSrfdBPAIwIkby1RJJe4iWL5rZEHRqpoDkPh6s2OHIktYxjAjoYt1hwKuQ_fLg)

*Side menu – Sheet icon for PO Details*

This takes us to the **PO Details** page, where we have many options and views of the raw purchase order data used throughout the charts we’ve previously discussed. This page defaults to the latest OTIF completed fine month.

![OTIF App – PO Details page](https://lh5.googleusercontent.com/1QRtzsG_QYRmBb0lHAoYrNOCaGx5oazXL9vYVChXwfwfEmwvGz7kuh0WayBSMS48X0JV5rHQRbhtJg2dCWEUdO6hCnlOk1S8MEFzQIPZNRiLaoGwD839vO98XbTrj54x_g79k3SV)

*OTIF App – PO Details page*

This page is filterable at many levels to ensure you have full access to every level of your data. As with the dashboard, you can filter by date using the dropdown. You can also use the global Filter and Download at the top right corner.

On this page, you can view the **PO Line Level** details, displaying the individual purchase order information, or view the **Receiver** details, which show the case counts.

For the PO Line Level view, you have the following options for filtering:

*   6 Digit Supplier number
*   9 Digit Supplier number
*   OMS PO Number
*   Order Date
*   MABD (Must Arrive By Date listed on the PO)
*   Cases Ordered
*   OTIF percentage score
*   On Time percentage score
*   In Full percentage score

For the Receiver view, you have the following options for filtering:

*   6 Digit Supplier number
*   9 Digit Supplier number
*   OMS PO Number
*   Order Date
*   MABD (Must Arrive By Date listed on the PO)
*   Cases that were early
*   Cases that were on time
*   Cases that were late

At the far right, you can select the three dots to open a dropdown, revealing more filter column options. These options are:

*   6 Digit Supplier number
*   Walmart Week
*   Supplier Name
*   Department
*   Category
*   9 Digit Supplier number
*   Host PO Number
*   OMS PO Number
*   Order Date
*   Channel Method Type
*   PO Type (manual or system-generated)
*   Cancel PO Flag
*   Manual PO Flag
*   PO Event Code
*   PO Line Number
*   Item name
*   Buyer ID
*   Freight Type (prepaid or collect)
*   Distribution Center Network
*   Distribution Center Number
*   Must Arrive By Date (MABD)
*   Original MABD
*   Adjusted MABD
*   11 to 11 Indicator
*   Consolidation Flag
*   Vendor Pool ID
*   Cancel Reason Code 
*   Confirm Shipment Date
*   Confirm Shipment Time
*   Original Cases Ordered
*   Adjusted Cases Ordered
*   Total Cases Ordered
*   Case Cost
*   Total Cost-of-Goods Sold (COGS)
*   OTIF score
*   On Time score
*   In Full score
*   Collect Ready score
*   Cases that were Early
*   Cases that were On Time
*   Cases that were Late
*   Cases that were Unfilled
*   Cases that were Overfilled
*   Cases that were Damaged
*   Cases that were Not-in-Full
*   Cases that had Late Routing (confirmed shipment)
*   Supplier Ship Point Cases
*   Prepaid Early Cases
*   Prepaid Late Cases
*   Prepaid Unscheduled Cases
*   Supplier Affected Cases
*   Supplier Affected COGS
*   Cases for Manual PO <45 Days
*   Cases for Delayed System POs
*   Cases for Canceled POs
*   Collect Early Cases
*   Collect Late Cases
*   Collect Unscheduled Cases
*   Walmart Affected Cases
*   Walmart Affected COGS

You can download all filtered data to a CSV file. You can also pin up to six filter views.

Additional pages
----------------

There are two additional pages in the OTIF App: **FAQs** and **Announcements**. 

The **Question Mark (?)** icon on the side menu links the Supplier Academy article on what OTIF is and how Walmart calculates it.

![Side Menu – Question mark icon for FAQs](https://lh5.googleusercontent.com/l0byu69GNykyALuOWpp5D6Fg4-oQ4o9sELMjOHVruU0htCGmbhy0Un0ZPMvLJ_bUGiVizzAV-VViCRyJBl9bVMG9vnKZHYvkluCfSEz2FuVVW4foH86GZkpr1Acdpc2Y7obkqha6)

*Side Menu – Question mark icon for FAQs*

The **megaphone** icon provides the latest announcements on what may influence OTIF data (e.g., hurricane activity causing store or DC closures) and what actions Walmart may be taking.

![Side Menu – Announcements icon](https://lh4.googleusercontent.com/cKztgmDxKj6SreRd78h3TSW3mGcfedmL_eYuXEzq8I7mK41E6Y0Qb0omdBU7rHwZmBlMnxbVbrWhpXjPzhDzQmVzNTdvBTYYKT7-WqzpixYP7rwQgvBZxgNShB6Lc6hB-6B0vcLa)

*Side Menu – Announcements icon*

Tracking 3rd party data
-----------------------

While the new OTIF Scorecard has a lot of functionality, it still lacks drill-down analyses into how third parties affect OTIF performance. With SupplyPike’s [**OTIF Radar**](https://www.supplypike.com/otif), you can get in-depth, actionable insights into your data.

![OTIF Radar – Drill-down analysis of carrier performance](https://lh4.googleusercontent.com/Thu3rD7A9VCJ4CAbjxq3dXG0EfXdq_vGZlydukN-EbW5EGU7ku_zw4Ff8YXRniYTI942xBbM8vOumeyM2kLySeWwEEC9XC8EvVXZZadT6Atpxxn31RtN5II7Cdc5iyiQ8AOuDtyp)

*OTIF Radar – Drill-down analysis of carrier performance*

Export reports and send them to your third parties to negotiate fines settlements, better rates, and improved terms. Get started today to see how SupplyPike can improve your OTIF score!

[![Actionable insights into your 3rd parties. Get started.](https://lh6.googleusercontent.com/Ev-bv8xueEp1MRX2B9SzHKSXZKO2cqCTnYrAYYL1wN6LrVxKN3EqV4177Y3A8vVTPzDuykYvOzpz_3D3OOabpBhuzCuuL362zAiv-T9JgG6Zy3pOWbM25UNUZztlloVF91jfKHyF)](https://www.supplypike.com/otif)

Navigating Walmart’s New OTIF Scorecard in Retail Link

What Is On Time In Full (OTIF)?

How Can I Improve My OTIF Performance?
--------------------------------------

Making sure you are compliant with OTIF requirements can be tricky. You’ll need to do **in-depth analysis** into potential issues, such as choosing a carrier, planning around things like weather delays, and making sure your warehouses are fulfilling the orders as expected.

The key here is **communication all along your supply chain**. The various silos of your organization must interact with each other to ensure full compliance and prevent future chargebacks from happening. 

![On Time and In Full Broken Down ](https://media.graphcms.com/hC4b2ibTEOPDgEa88dIB)
 
_Supply Chain Success Factors_

Additionally, understanding what OTIF means and the purchaser’s requirements is essential as well. Most retailers will levy fines for being **early, as well as late**. Once you have identified the problem, share this information with your sales and replenishment teams, as well as the stakeholders involved with the point of pain, such as warehouses, distribution centers, or carriers.

For example, if you find out that your **carrier of choice is consistently late**, then you may look into trying a different carrier. If your merchandise keeps coming in damaged from one warehouse, then you would likely have to bring that issue to the attention of your warehouse manager. Not all OTIF issues can easily be resolved, however, and there may even be issues on your retailer’s side that affect your performance score.

What Can SupplyPike Do to Help?
-------------------------------

SupplyPike OTIF Radar does the manual and tedious work of pulling OTIF-related data from multiple sources, joining it intelligently, and storing it indefinitely so that you don’t have to. With a few simple clicks, you can view your **[OTIF scorecard](https://supplierwiki.supplypike.com/articles/navigating-walmarts-new-otif-scorecard-in-retail-link)** and a comprehensive root cause analysis to identify OTIF opportunities for improvement.

SupplyPike OTIF Radar starts by showing you an easy-to-read analysis of your **accountability**. You can see the categorization of each shipped case in percentages, as well as your general On-Time and In-Full scores. Each graph is broken down by the Walmart week, so you can quickly compare your scores.

![OTIF Radar Dashboard](https://media.graphcms.com/csoCpNqfTcyrtZQQYPOd)

_OTIF Radar Dashboard_

SupplyPike OTIF Radar also will do analyses of compliance issues with your distribution centers, warehouses, carriers, and even products. This way, you can find the root of the problem with just a few simple clicks!

![OTIF Radar Carrier Analysis.png](https://media.graphcms.com/LTdf5aTkSPA15r3FbkhA)

_On Time Performance by Carrier_

Getting started with SupplyPike is easy. Go to our [**SupplyPike OTIF Radar**](https://www.supplypike.com/otif) page to sign up for a demo or free trial today!

[![Get valuable, actionable insights. Get started. ](https://lh3.googleusercontent.com/e54ra-aJZaamqu_ASvTlIwnAHOgSA4pGctl36dphV3ZGSBdfzSLszTI9s9OBeeLuq0EutbydApXQTpaT_BkQa0VEEz5HA5vXjTdls9sGj3qftO6CRV6JQkclXu2zxw)](https://www.supplypike.com/otif)

Improving OTIF Performance

Learn about:

*   The primary goals of Walmart’s On-Time In-Full (OTIF) program
*   Some best practices to improve your OTIF score
*   How to implement these practices

* * *

On September 1, 2020, Walmart announced [**new changes to its On-Time In-Full goals**](https://supplierwiki.supplypike.com/articles/new-2020-walmart-otif-changes/). The changes enacted mean that all orders, regardless of shipment type or merchandising alignment, must be filled and on time for **98% of all cases ordered**.

Seem pretty steep? Here are some best practices suppliers can enact in their supply chain to ensure they are compliant with the new goals.

How to be On-Time (Prepaid)
---------------------------

For 98% of all ordered cases to be “On-Time,” they must arrive within the [**delivery window**](https://supplierwiki.supplypike.com/articles/new-2020-walmart-otif-changes/#prepaid-expectations) for their particular situation. There are different delivery windows based on destination distribution centers and merchandising alignment, so suppliers should know with which delivery window they need to comply.

Supplier shipping on their own means having to communicate the OTIF requirements. Suppliers will need to stress the importance of being on time to carriers, third-party logistics companies (3PL), or consolidators. A best practice would be to establish a game plan:

*   What is the supplier going to do if the carrier starts running late or early consistently?
*   What happens if the carrier can’t keep appointments? 
*   Will the carrier/consolidator/3PL pay for fines? 
*   Can the supplier negotiate cheaper rates based on poor performance?

[**_Related Reading: Holding Third Parties Accountable for OTIF Fines_**](https://supplierwiki.supplypike.com/articles/holding-3rd-parties-accountable-for-otif-fines/)

If suppliers ship LTL, they need to speak with their buyer or replenishment manager to see if that method is best for their business or ship full truckload for bigger orders. It may be beneficial to look at consolidation as well, which is the process of combining LTL orders from other suppliers into a full container shipment with multiple stops.

Suppliers who are scheduling their carriers on their own without using a 3PL or a consolidator will need to vet carriers and track them very closely. It may seem more cost-effective to go with a cheaper carrier, but if they are consistently late (or early), then the OTIF fines can harm that return on investment. Suppliers should find a carrier with a good track record and even ask for the carrier’s OTIF scores. Suppliers must compare pricing with performance and keep in mind that 3% of their COGS is on the line. 

Suppliers should also ensure that third parties are correctly scheduling delivery appointments. Third parties need to make and hold the promise that they can get the order into the DC during the delivery window (which can be very time-sensitive and strict depending on merchandising alignment). 

Sometimes, the DC will make the carrier wait at the dock past the appointment time, causing the carrier to be late. Suppliers should track their DCs’ performance as well, as there may be issues with them. If the supplier finds a particular DC consistently making carriers wait, it should contact its buyer and replenishment manager and let them know that there is an issue.

How to be On-Time (Collect)
---------------------------

For Walmart to consider a supplier’s cases “On-Time (Collect Ready),” for 98% of all ordered cases, two things must happen:

1.  The supplier routes and confirms all Walmart POs by the time specified on the order.
2.  The supplier fulfills the order according to the PO in the exact quantities and has the order ready for pick up at the appointment time specified on the PO.

To be compliant, suppliers must check their PO routings and respond within one day. Confirming the shipment on time lets Walmart know that the supplier will have the order ready for Walmart’s carrier. Generally speaking, suppliers must confirm Walmart POs by 4 PM Central Standard Time the day after Walmart sends the PO. However, other scenarios have different compliance requirements:

*   For **Department 94 (Produce)** system and manual POs, the supplier must confirm the shipment at least two days before the ship-on day. If the supplier receives the PO fewer than two days before the ship-on day, the supplier must confirm the shipment the day the supplier received the PO.
*   Suppliers must confirm **manual POs 30 days before the MABD** listed on the PO. However, if the supplier received the PO fewer than 30 days before the MABD, the supplier must confirm the shipment by 4 PM CST the day after receiving the order.

Suppliers (or their third-party warehouses) also need to have the whole order picked, packaged, and on the dock by the appointment time on the pickup date. Walmart expects suppliers to make sure their orders are ready for the retailer’s carriers to come and get them.

How to be In-Full
-----------------

Suppliers need to fill 98% of all cases ordered to be compliant with Walmart. To be “In-Full” means to ship all of the quantities in the PO exactly as Walmart has ordered them.

To this end, suppliers must forecast their sales to Walmart. Walmart’s Retail Link already provides a GRS forecasting tool, showing a rough estimate of how many cases Walmart expects to order from the supplier. However, suppliers should create their own demand plans and supply plans in conjunction with this forecast. These plans will ensure the supplier always has enough products on hand.

Again, communication is critical. When suppliers have issues with their supply, they should immediately communicate that to their buyers and replenishment managers. Buyers and replenishment managers can work together with suppliers to update sales forecasts, supply plans, and other expectations.

Suppliers should clearly mark their packaging so that the DCs will know to whom the order belongs. Different stickers or color boxes may help with identification. It is also important to avoid mixing pallets if possible to ensure that the DC staff can’t mix up items and orders.

PO cancelation and submitting tickets
-------------------------------------

If need be, suppliers can cancel POs, and the accountability may fall into Walmart’s bucket depending on the given reason code. Walmart accountability lies with these cancelation codes:

*   **End of Life Items/Deletes:** Walmart has ordered an item that should no longer be in stores. Typically, the supplier has selected not to sell these items, or Walmart has deleted the item from its catalog.
*   **Gross Forecast Error:** Walmart has created a GRS forecast that is simply unobtainable for the supplier. An example of this would be a spike in last year’s sales led to an unrealistic expectation for this year.
*   **Gross Modular Error:** Walmart’s marketing department or store has not set up the modular correctly, causing inventory errors. An example of this would be a store creating an end-cap for a holiday item and not forecasting the amount required to stock that section.
*   **Incorrect Item Setup:** There was an error with Item 360 when the supplier attempted to create or modify an item in the catalog.
*   **PO Re-Write (Features):** There were strategy changes causing the creation of a replacement PO.
*   **PO Written Incorrectly Walmart:** Walmart or the supplier created a PO with quantities based on inaccurate information from Walmart. An example of this would be Walmart creating a PO based on data stating there is no stock for an item in a particular DC when the DC actually has multiple cases of that item.
*   **Weather/Natural Disaster:** There was an incident out of the supplier’s control that caused issues with the PO’s supply chain. These incidents include catastrophic weather, such as hurricanes or tornadoes, natural disasters, such as earthquakes, or a “State of Emergency” declaration, such as massive bombings. For a while, Walmart included cancelations due to COVID-19 impacts as “Natural Disaster,” but the retailer has since excluded the pandemic as a valid cancelation reason.

If suppliers know they must fulfill an order, cannot cancel the PO for one of the above reasons, and cannot fill the order as requested, they should immediately reach out to their replenishment manager.

If suppliers are having trouble with DCs receiving their shipments on time because of an issue on Walmart’s side, then they should immediately create a ticket in Walmart’s **Transportation Portal** on Retail Link.

Tracking your data
------------------

Communication is key to a smooth and successful supply chain. The best way to communicate effectively is to track your data closely and accurately. SupplyPike’s [**OTIF Radar**](https://www.supplypike.com/otif) does just that.

With OTIF Radar, you can export data relating to each aspect of your supply chain, from origin to destination, from item to carrier. 

![OTIF Radar Scorecard - Carrier Detail](https://lh6.googleusercontent.com/MWZytb8J04pFcZ6xpvcccpNYyj4REDEvQbhhDo1wT18rs0NFMZQ0b6ITMUmqf1Rb9lf9x3CJAdOuolrelFUOq434WaBOHXGkslIvhASGtNTUmsklcSNwMEZVQu03CBmx-_2a-qtK)

*OTIF Radar Scorecard – Carrier Detail*

![OTIF Radar - Carrier Analysis - List of POs](https://lh3.googleusercontent.com/HiaTwpZ3n6WpYK5JTawIYkU258lWEU0reM76qE5qiNOwFU8pThHalLU9vlMcO_kHj7kKQ5hAEw7EDB0fZyKY5saOL3k0V__iM9OmNu_v6PZMvmd5MZbNgGLfRhEAJ1htRLfcLaxx)

*OTIF Radar – Carrier Analysis – List of POs*

Getting started with OTIF Radar has never been easier! [Schedule your tour](https://www.supplypike.com/otif) today!

[![Keep track of your OTIF data](https://lh5.googleusercontent.com/xIgt7k5N-obcI7WneeQZ7Es5iNa85FJmqud0YNtsX-SSxr2IBkOG1C1y0wNlvFfIbIRFLPLf56_W-RctZXhyavXNAK12q2wUvhjqEfFghBjVQzA-_H4vnQ_pARFm89eqM0N3x1u0)](https://www.supplypike.com/otif)

OTIF Best Practices

The Walmart OTIF compliance program has many nuances and can cause significant hits to your bottom line if it’s not met. It’s all about delivering your products **O**n **T**ime and **I**n **F**ull to Walmart distribution centers. A key part of meeting the **[OTIF requirements](https://supplierwiki.supplypike.com/articles/new-2020-walmart-otif-changes)** for all prepaid suppliers is scheduling delivery appointments within the must arrive by date (MABD) window of the PO.

**What is MABD?**
-----------------

Walmart will include a **Must Arrive by Date (MABD)** on each purchase order. This date indicates when your product must be delivered to Walmart to meet Walmart’s on-time requirements for that PO.

If an order is delivered outside of this MABD delivery window, that order will be seen as either early or late and your OTIF score will be affected, potentially incurring fines from Walmart.

**What are the Delivery Windows?**
----------------------------------

MABD is only a single date, however, the window that the product must be delivered will vary based on the department of the product being purchased. As of **3/26/2021**, there are four delivery windows:  

*   MABD
*   MABD-1 Day
*   MABD-2 Days
*   MABD-3 Days

The **MABD** window means the product must be delivered on the exact MABD date.

The **MABD-1 Day** window means the product must be delivered the day before or the day of the MABD date.

The **MABD-2 Days** window means the product must be delivered up to two days before or the day of the MABD date.

The **MABD-3 Days** window means the product must be delivered up to three days before or the day of the MABD date.

**_[Related Reading: OTIF Best Practices](https://supplierwiki.supplypike.com/articles/otif-best-practices)_**

**Delivery Windows by Mode and Network\***
------------------------------------------

_\*as of 3/26/2021_

The delivery window for **live appointment POs** is **exactly the MABD**, not a day before or after.

For **drop trailer POs**, the delivery windows are as follows:

**Network**

**Mode**

**Delivery Windows**

Perishables

All modes

On the MABD

High-Velocity DC (HVDC)

All modes

MABD-1 Day

Automated Consolidation Center (ACC)

All modes

MABD-1 Day

Regional DC (RDC)

Full Truckload

MABD-2 Days

Fulfillment Center (FC)

Full Truckload

MABD-2 Days

Fashion DC (FDC)

Full Truckload

MABD-2 Days

Regional DC (RDC)

LTL

MABD-3 Days

Fulfillment Center (FC)

LTL

MABD-3 Days

Fashion DC (FDC)

LTL

MABD-3 Days

OTIF Delivery Windows for Drop Trailer Shipments

When combining POs onto single shipments, your transportation team should take extra care to ensure that the shipment will arrive within the MABD windows of every PO on the shipment.

Keep track of these delivery windows when scheduling appointments or rescheduling appointments to ensure that your appointment time falls within the MABD delivery window, or else your OTIF score, and your fines will be affected.

[![Become the master of your OTIF data. Get started.](https://media.graphcms.com/gNb9H9AJRNBocKMe7GTf)](https://www.supplypike.com/otif)

OTIF – How To Meet Delivery Appointments

The days of packaging and delivery forgiveness for product shipments are over. Retailers, especially Walmart, are enhancing their OTIF (On Time In Full) requirements and creating stricter guidelines. While the new rules are shaking up supply chain management for suppliers, they also bring new opportunities to stay competitive. You’re probably asking yourselves a lot of questions with all of these changes. But, are you asking the right questions to get the most for your business?

**What are the most important things that affect OTIF Score? What should vendors be focusing on?**
--------------------------------------------------------------------------------------------------

There are two components of the OTIF Score metric, On Time and In Full. Your supply chain must be successful in both to achieve good OTIF results.

### **On Time:**

*   Are you getting your loads to the Retailer’s Distribution Center (DC) within the Delivery Window?
    *   Use the Retailer’s OTIF compliance reports to identify which specific lanes are creating non-compliance issues. Focus on resolving recurring non-compliance issues more than one-time occurrences.
    *   Investigate whether the load shipped early/late or if it was received early/late.
*   Are loads getting picked up on time by the Carrier?
*   Are the early/late loads attributed to a single or small group of Carriers? Why did the carrier miss the delivery window? Is this a recurring issue for that Carrier?
*   Is your Lead Time correct for each lane and entered into the Retailer’s replenishment system correctly?
    *   Reach out to the Retailer with updates if specific lane lead times need to be changed.
*   Is your ship facility scheduling delivery appointments with the destination DC, in a timely manner per the suggested guidelines, to obtain appropriate delivery appointment times?
*   If you are shipping Less-Than-Truckload (LTL), are other vendors impacting your Carrier’s schedule?
*   Did the PO ship on multiple trailers, causing part of the PO to receive late?
    *   Is your pallet TI/HI (or Pallet Platform) incorrect, causing loads to split between two trailers?
    *   Is your product carton weight incorrect, causing loads to split between two trailers?

### **In Full:**

*   Was there sufficient shippable product, at the designated ship point, to fulfill the order?
    *   Is your demand plan correct?  Have you included turn business demand, promotional demand, seasonal demand, and a buffer in your demand forecast?
    *   Do you have inbound logistics issues? Did your supply plan provide sufficient lead time to get the product to your warehouse in sufficient time to meet expected orders? Did you take into account weather, holidays (ex. Chinese New Year celebrations), or seasonal constraints on shipping capacity impacting your supply chain?
*   Did the load ship in full, but not receive in full?
    *   Was it a mispick at the originating warehouse?
    *   Was it a mis-receipt at the destination DC?
        *   Does an over/under receipt issue exist for the PO?  This could be caused by carton misidentification.
    *   Is your carton packaging or labeling causing misidentification on multi-carton POs during the picking or receiving process?
    *   Was it a mis-ship or a consolidation facility error?

Research in Retailers’ OTIF reporting modules for performance failures can provide a root cause. Many Retailers track performance failure by category. These modules will also identify departments and SKUs causing performance failures for further research. Furthermore, the reporting modules will give you additional items to investigate and resolve; which might improve OTIF performance.

CPG companies should be looking at each ship facilities  for consistently on time and recurring late/early occurrences. Perhaps there are best practices that can be applied to problem warehouses   which will resolve issues across multiple DCs.

_**[Related Reading: OTIF Best Practices](https://supplierwiki.supplypike.com/articles/otif-best-practices/)**_

**Consolidation and Accountability is Key**
-------------------------------------------

Vendors should explore consolidation options if they haven’t already. If you are consolidating and still falling short, using a third-party analytics provider to analyze your metrics and hold carriers or logistics companies accountable can be very valuable.

Verification that supplier accountability is being weighed when planning internal changes based on OTIF is also very important. For example, your month to month score may be hovering around 83-85, but Walmart may accept responsibility for a large portion of these failures, pushing their total OTIF into the 90s. In the long term, you should want to address delivery performance failures directly, but you shouldn’t push internal changes if Walmart’s issues are constantly driving your performance metrics down.

**Using Analytics to Monitor and Increase OTIF Scores**
-------------------------------------------------------

Managing a supply chain is time-consuming, but SupplyPike’s **[OTIF Radar](https://www.supplypike.com/otif)** app can help streamline the business analysis process, making more efficient use of your valuable time. Out-of-the-box and customizable reports on a flexible dashboard allow your team members to spend less time running reports and more time focusing on and analyzing the operational problems affecting your OTIF results and your business operations.

In the end, remember delivering good OTIF results is a multi-step process with multiple business partners affecting your company’s performance. Follow the suggested error discovery process, and be systematic in your corrective actions. Good OTIF performance requires you to be vigilant and monitor your weekly/monthly metrics. It is not a one-time “fix it and forget” event. Remember to spend more of your time solving recurring issues; not one-off issues that will continue to occur.

[Read more about OTIF tools for your business.](https://www.supplypike.com/otif) 

[![OTIF in a Snap. Get started today. ](https://lh4.googleusercontent.com/iLtXXNCpNDOxLKkAoXqplS9hZSi80lop9Jak43HHsjEcTai596HfWrKrSBtuPs2dkxjmp8b-CkuIsMxO95W82oR-RZhMX1TlGSxfPxuooNsMe4l3CS5Luq6wxYPVC0YDiFtDvrQP)](https://www.supplypike.com/otif)

Questions To Help You Improve OTIF Scores

How Do I Stay Compliant with Walmart?

Learn about:

*   What supply chain risk management is
*   What risks you may encounter in a supply chain
*   How you can create a risk management plan

* * *

What is supply chain risk management?
-------------------------------------

The principle of supply chain risk management revolves around ensuring a steady stream of the materials needed to make or sell a product. Whether a business builds complex industrial products like cars or is a smaller operation like selling hamburgers, its process depends on using things (like parts of engines or hamburger buns) [made by other companies](https://supplierwiki.supplypike.com/articles/understanding-supply-chain-management/).

If deliveries from a supplier unexpectedly stop, one might not be able to deliver on one’s products – it’s hard to make hamburgers without the buns. These sorts of worries have led to a lot of thinking about the best ways to perform supply chain risk management in various contexts. Clearly, managing the risk of interruptions to one’s supply chains is vital for businesses of any size.

It’s important to know where the vulnerabilities of one’s supply chain lie. Also, remember that risks may emerge from both expected and unexpected sources. Once you know where those risks lie, you can start working to minimize them by building a risk management plan.  As we will see, these plans will rely on collaboration with suppliers, diversifying one’s sources for materials, creating a reliable and varied transport network, and constant monitoring.

What supply chain risks do I need to manage?
--------------------------------------------

Experts have developed many different ways of looking at the risks inherent in doing business in a context where large, border-crossing supply chains are typical. We’re even more aware of these risks in the time of our global pandemic. Some of the most commonly written about [sources of risk](https://www.researchgate.net/publication/235293601_Supply_Chain_Risk_Management_Understanding_the_Business_Requirements_from_a_Practitioner_Perspective) are as follows: 

1.  _Environmental risk_: One needs to be aware of natural disasters like flooding, hurricanes, and wildfires, especially as climate change makes these events more likely. If a crucial manufacturer has its factory at the bottom of a flood plain, that’s something to include in a risk management plan.
2.  _Political risk_: Political events, from large protests to terrorism, also affect supply chains. Though these can be harder to predict, sometimes a manufacturer might be trafficking in politically contentious goods; for example, animal rights protestors may target a meat processing plant.
3.  _Process risk_: Process risk has to do with what could go wrong in the manufacturing process downstream in the supply chain. There might be bottlenecks in producing a crucial good, which could cause chaos. Factories or farms with old or unreliable equipment represent a process risk.
4.  _Supplier risk_: The solvency of a retailer’s suppliers is another crucial aspect of risk management. If a supplier’s business is not stable, bankruptcy or scaling back business can hurt one’s supply chain.

The process of thinking about supply chain risk management should start with considering these risk types. Businesses that neglect making proper risk management plans can face challenging situations. 

[![Get data-driven insights. Get started.](https://lh5.googleusercontent.com/W0mWe7kHh3I4bgDta4AdHtZaVnpm7HtJBDmUnkCYroDyQhzMsStsJtzf09N0PZzpsrEd77Li5LjQuoTgilpk-wx8OrOxaC3WTi6SoRUKYk9z9OttxTJ3dhgt8EiKk5F59-x9EkHK)](https://www.supplypike.com/otif)

How can I make a supply chain risk management plan? 
----------------------------------------------------

The first step to managing supply chain risk is to identify what could go wrong systematically. A good supply chain risk management plan starts with considering the factors mentioned above but goes beyond just thinking about them. Instead, one needs to work on **risk mapping**. 

Risk mapping [involves drawing out each step](https://www.researchgate.net/publication/242350127_Ericsson's_Proactive_Supply_Chain_Risk_Management_Approach_After_a_Serious_Sub-Supplier_Accident) of the supply chain from source to manufacturer to warehouse to retailer. It’s a project that can’t just extend to the sources that one directly deals with; think of the source of your sources as well. Of course, their suppliers too – all the way back to the natural resources necessary for your product.  

The reason for going back to the source of the products is that any interruption to any of the links will reverberate to the top.  Thus, risk maps are often global in scope, stretching to distant corners of the world. 

Once you have sketched the supply chain in as much detail as possible, establish the different types of risks you need to evaluate at each stage. What’s the chance of a natural disaster in the areas where you extract resources? Is a particular manufacturer located in a politically unstable part of the world? Answering these questions will show where the mitigation of risk needs to happen.  

How can I manage risk in my supply chain?
-----------------------------------------

The ways of mitigating risk depend on many business-specific factors. (How many other suppliers are there? What volume of a product is necessary?) Still, there are a few approaches that will work in many contexts.  

The first, and often the best, option is to collaborate with one’s sources. Learning with greater precision about their supply network will help your plan become better. Also, a customer can push a source to improve its own supply chain risk management.  The same steps taken to control one’s supply chain risk can help the companies within that supply chain – anything that improves their reliability decreases your risk. 

One can also plan for an interruption stemming from a specific manufacturer by building relationships with other sources who can provide the same product. Having access to a diversity of sources ensures that the closure of one business or an interruption to production at one factory won’t be disastrous. 

One often overlooked area of the supply chain is transport. The failure of a piece of infrastructure, like a dock or airport, can cause massive delays. Ensuring one has alternative ways of receiving the materials is incredibly important. 

Finally, it is crucial to continually monitor the supply chain to ensure that the plan is up to date and features correct information. Data-driven insights help identify the supply chain links that are becoming riskier and enable proactive steps to reduce that risk.  

Final thoughts on creating a supply chain risk management plan
--------------------------------------------------------------

When a product’s components have passed through thousands of hands before they reach a consumer, it might seem daunting to create a risk management plan covering an entire supply chain. Hopefully, the tools and tactics outlined in this article make it seem less so because the complexity of supply chains makes the work essential. 

Finding pain points in your supply chain can be challenging. That why SupplyPike created its OTIF Radar app with data-driven, actionable insights. Track your carriers, your manufacturers, and your items’ flow to help you create a risk management plan. The best part? [It’s **free** for 14 days!](https://www.supplypike.com/otif)

![SupplyPike OTIF Radar - Destination Analysis](https://lh6.googleusercontent.com/kgTQOkdsvCEvcpISrHEAefIrEp33ZnhiO_W4hOez5Nt1vzBUZOoUgTaVQvM3vnw5Q6TAE_0LQWQLPjhu9VoY7JSLxT6sbhQFHZe5VnlyEw3HLG0vFmmAyg02ZMiBv5azkfVT0gck)

*SupplyPike OTIF Radar – Destination Analysis*

[![Insights you need to make a plan. Take a tour.](https://lh5.googleusercontent.com/v2FxEF7W7ZietOeYbumwa_vkO2Esu1mPNlgu2Pl8b95I2mOEh1TMrmmT2McrV-B-WkxG9F8SH7jZyBr4hYj_1sBEYvR5adFKjfvSisz3hzerjpPkaK81rvpTJUZ5JI7244sp3N97)](https://www.supplypike.com/otif)

How Do I Create A Plan For Supply Chain Risk Management?

Learn about:

*   How Walmart fines for OTIF non-compliance
*   Fetching data regarding OTIF
*   How to find the root cause of OTIF non-compliance

* * *

Every Walmart supplier knows, Walmart levies hefty fines for poor On-Time, In-Full performance. The [**OTIF metrics**](https://supplypike.com/blog/walmart-otif-metrics/) can be challenging to meet, and compliance failures are the supplier’s burden to bear.

Specifically, Walmart fines suppliers 3% of what it pays for suppliers’ products for OTIF performance failures. Fines can add up to many thousands of dollars, payable to Walmart, month by month until the supplier addresses OTIF issues.

However, it’s not always the supplier’s fault. Third parties in supply chains do not face these fines for their performance. Still, they often can be a leading cause of OTIF failures, resulting in suppliers losing money to penalties and poorer replenishment and out-of-stocks.

Additionally, it is challenging to track third parties’ performance and quantify their impact on an ongoing basis because of siloed data. Thus, it’s challenging to hold them accountable for their performance, preventing suppliers from improving OTIF outcomes and eliminating fines.

OTIF Fines
----------

Suppliers have **On Time**, **In Full**, and/or **Collect Ready** OTIF metrics, each with their own goal percentages that they must meet each month. If suppliers do not meet the goal for a month, Walmart fines suppliers **3% of the Cost of Goods Sold (COGS)** of the non-compliant cases shipped to the distribution centers. 

Walmart **does not fine** third parties, including carriers, 3PLs, and warehouses in supply chains for their performance. Instead, Walmart fines the supplier.

This may seem unfair, but it puts the burden of compliance on the pain point Walmart sees: the supplier. It is the supplier’s responsibility to find out where compliance issues lie, and thusly address them.

[![Get to the bottom of supply chain issues](https://lh4.googleusercontent.com/xLg_a5NhLjq08qOtBPMUTJYypkro52ir4qbT8v3LUZNo46thPUsNHGJePC--v9_qyPBtNc9XMIk0d_hwAvQfFHdaPGYtdg-N4mwecPrLW0TvOBzaRh0evJwQ_p81cmNQiPsNSUC4)](https://www.supplypike.com/otif)

Finding the root cause
----------------------

It’s essential to find the root cause of compliance issues to avoid costly fines. Let’s break down some reasons for common problems.

### On-Time Prepaid issues

On-Time Prepaid issues occur when the order did not arrive by the **Must Arrive By Date (MABD)** at the distribution center (DC) – not the appointment time. The first place to look at when judging On-Time issues is the carrier. 

*   Has the carrier been late or early?
*   Did the carrier pick up the order within enough time to deliver it? Were there extenuating circumstances, such as bad weather or overwhelmed drivers? 
*   Is there a pattern with a particular carrier, e.g., its orders always arrive late?
*   Did the carrier miss the appointment (even if it was within the delivery window)?

The supplier can also look at the timing of the pickup.

*   Did the supplier schedule the appointment too late or too early? 
*   Did the carrier or logistics team know when they must deliver the order? 

### In-Full issues

In-Full issues occur when an order contains fewer cases than what Walmart ordered on the PO. The root cause for In-Full problems may be the supply chain of a particular item. 

*   Is enough being manufactured, i.e., is demand higher than supply? 
*   Is there enough supply in the warehouse to fill the order?

If there are no supply chain issues causing order shortages, it may be time to look at DC behavior. 

*   Is the product packaged and clearly marked so that DCs may identify that they have the correct quantity of the right item? 

The best practice here would be to contact the replenishment manager or buyer and find out what issues a particular DC may be experiencing with orders.

In-Full issues may also arise from PO cancelations. If a supplier cancels a PO because it cannot fill the order as requested, the supplier must cancel it for the right reasons. For example, if a hurricane devastates the warehouse, the supplier will need to cite “Weather/Natural Disaster” as the cancelation reason code. This will remove the supplier’s accountability and prevent fines.

Shortages often come in the form of deductions, and suppliers can dispute these. If a **Proof of Delivery (POD)** shows that all of the products on a PO arrived at the DC, then [**the supplier may dispute the deduction.**](https://supplierwiki.supplypike.com/articles/how-to-dispute-a-walmart-deduction/) 

[**_Related reading: Avoiding Basic Walmart Deductions_**](https://supplierwiki.supplypike.com/articles/avoiding-basic-walmart-deductions/)

### Collect Ready issues

Collect Ready issues occur when Walmart could not pick up an order at the appointment time or from not routing the PO by the designated time (i.e., confirming the shipment). This can happen for any number of reasons, but the principal place to look at is the origin that fulfilled the order. 

*   Is the warehouse or vendor having difficulty picking and packing the order? 
*   Are there issues with supply at that particular origin? 
*   Is the origin of the order having issues with appointment times?

If Walmart carriers are not arriving on time (or at all), is the supplier submitting tickets? Suppose the supplier is having issues with Walmart’s fleet. In that case, the supplier will need to submit a ticket via the **Transportation Portal** in Retail Link to ensure that the OTIF failure falls into Walmart’s accountability bucket.

For Collect Ready orders, unless the PO specifies something else, the supplier must confirm the shipment by **4:00 PM Central Time (CDT)** the day after receipt of the order. If the supplier’s scores dip, it will need to ensure the order processing system follows **Walmart’s Confirm Shipment** (previously _Request for Routing_) guidelines.

Answering these questions will help find the causes of compliance issues with OTIF. Walmart will not supply this information, so suppliers have to dig up the details themselves. 

Holding 3rd parties accountable
-------------------------------

Almost all suppliers rely on third parties in their supply chain in a way that affects OTIF outcomes. Even Collect suppliers who have outsourced transportation to Walmart must still rely on third-party carriers such as the Walmart fleet or other carriers to pick up orders on time and ensure that product gets delivered to DCs in full. Collect suppliers must also rely on warehouses and vendors to ensure they have their orders completely fulfilled and ready for routing on time.

Whether it’s carriers, 3PLs, or warehousing providers, these parties are integral to the ultimate outcome of achieving maximal OTIF performance and helping suppliers avoid fines.

With the proper amount of visibility and data, suppliers can expose OTIF failures to the responsible third parties. Then, conversations can occur to solve the root cause, modify services, or even seek monetary relief in the form of passing fines along, receiving discounts, or negotiating better future rates. In some scenarios, suppliers might move on to other service providers that can better meet their goals. 

Lack of data
------------

Suppliers’ data is segmented across systems, apps, and websites. The ability to group OTIF performance by individual parties in a supply chain is simply not feasible without expensive integrations or tons of manual work every week indefinitely. 

It’s possible to see the final OTIF outcomes, but not possible to see what happened in the supply chain to cause those outcomes because the data is so spread out. Data comes from a wide variety of **Retail Link apps**, which are not connected or cohesive. Additionally, Retail Link does not give suppliers insights into the actual causes of OTIF non-compliance.

Internally and externally, OTIF outcomes, **as judged by Walmart’s OTIF program**, are not always the same performance tracking. For example, meeting a scheduled delivery appointment on time does not mean that the supplier delivered the PO on time, according to the Must Arrive By Date (MABD) requirements.

[**SupplyPike OTIF Radar**](https://www.supplypike.com/otif) helps solve these problems by automatically retrieving data from multiple applications, stitching it together, and providing insights and KPIs to easily judge each party in your supply chain. 

![OTIF Radar - Carrier performance](https://lh6.googleusercontent.com/DaLqa4mYF2zo8CkL9KtXIknwI-np3zXU64sjPMV0NqkTRGWtzMzyWtpXh5ckYGbiS7YBby6_DZEaeMnv4C-GHrw_YBwprV1oSv6KVWlpNQlGAV73ms1mIz2gE_KBZxNnfOcJMGDr)

*OTIF Radar – Carrier performance*

Not only can you compare performance across parties to your specific OTIF goals, but you can also scorecard each third party with the specific data behind the scores and the exact dollar amount in fines that third parties have caused you.

![OTIF Radar - Scorecard summary](https://lh5.googleusercontent.com/kkSuzd0KoImZp7u19LxcSQkJFwtPCzT3dzyKYPwqqmVKVW3phbUhkzt0Q9MbBgHTOf2d3OkI0159IyHvNSLhaXMmWG0411d1Mgv_xO3bIRIIxA4sA8-vVXvuIWVfvp4dascny8dx)

*OTIF Radar – Scorecard summary*

This data transparency gives you the information you need to objectively grade third parties, initiate conversations with the third party, resolve supply chain problems, or move you to better service options without OTIF fines. Get started with [**OTIF Radar**](https://www.supplypike.com/otif) today!

![OTIF Radar - Dive into potential fines](https://lh6.googleusercontent.com/u7NcyON4L--aH3uK8wq_PWbd0HfhJ7iKaWbR_QEVLbD2ATttC3zdvFYTqX66I4JKy__tPYagsjiBr8UnQyjYHKvDP-j9r37-Se8p51da-hFuXdJiO9A-4N_bYlxvtSF1Bp6lE0rh)

*OTIF Radar – Dive into potential fines*

Want more? [Take a tour today!](https://www.supplypike.com/otif)

[![Hold 3rd Parties Accountable](https://lh4.googleusercontent.com/Wse9TDaW2UqSnvTJjESdGKO0WXwh5b10B2WlZxRsDAhyyu3OqSsFM8XMfQtIkRvbT9ffwH2dgKyGR42EpsNlPlxNOgUHwMbYm0AerAS8d3DEMOAoA7IW35ZKlhDQc_L0v2IbuDEJ)](https://www.supplypike.com/otif)

Holding 3rd Parties Accountable for OTIF Fines

Learn about:

*   The difference between deductions and OTIF chargebacks
*   Which chargebacks are disputable
*   How to dispute OTIF fines

* * *

Officially, Walmart has stated that [**On-Time In-Full (OTIF)**](https://supplierwiki.supplypike.com/articles/walmart-otif-fundamentals) chargebacks _are not disputable_. Although there is no documentation regarding disputes, Walmart has reversed fines before issuing them to some suppliers with valid claims proving they were compliant.

What’s the difference between a deduction claim and an OTIF chargeback?
-----------------------------------------------------------------------

Suppliers commonly dispute [**shipping deductions**](https://supplierwiki.supplypike.com/articles/what-are-the-most-common-walmart-deductions-codes) through **Direct Commerce**, which have specific adjustment codes stating the issue and why it occurred. If you need help fighting regular deductions, see our [**How to Dispute Deductions**](https://supplierwiki.supplypike.com/articles/how-to-dispute-a-walmart-deduction) article. 

On the other hand, OTIF fines are general chargeback fees that occur separately from the supplier’s invoicing process. Deductions occur through Walmart’s accounts payable department, whereas OTIF comes from the accounts receivable department.

Walmart will take a deduction directly from the check it issues suppliers with a specific [**claim code**](https://supplierwiki.supplypike.com/articles/walmart-deduction-codes). However, OTIF chargebacks come in the form of an invoice that **Walmart sends the supplier** through its accounts receivable department. If the supplier does not pay the invoice, Walmart will deduct the fee from a future check.

Here’s the bad news. Deductions are relatively easy to dispute by uploading a few documents and submitting them to Walmart. (We make it even easier with our [**Deductions Navigator**](https://www.supplypike.com/deductions) software.) Suppliers can address them reasonably quickly, and Walmart returns the fees within a month or so. 

OTIF disputes, on the other hand, generally must occur **before Walmart issues the fines**. Walmart has not documented the dispute process for OTIF fines, so it’s not always clear how long the process will take or what Walmart will require.

The types of disputable chargebacks
-----------------------------------

The lack of documentation on OTIF disputes means that there are no clear standards as to what would warrant a reversal, but there are some potential reasons for one:

*   Walmart’s OTIF data is incorrect.
*   Walmart or a third party dispatched by Walmart contributed to OTIF failure.
*   Walmart requested something that resulted in compliance failures.
*   There were factors outside of the supplier’s control (COVID, weather, etc.).
*   There were one-time training or education issues that the supplier has resolved.

Ideally, these issues would represent most failures for that month’s OTIF period for that metric since the goal to avoid a fine is 98% on all metrics now. 

How to dispute an OTIF chargeback
---------------------------------

Walmart will send an OTIF chargeback around four weeks after the end of each month, so to have the fee waived, the dispute must occur within four weeks of the month’s end.

Disputes are most effective when the supplier communicates with its buyer and replenishment manager. This communication should begin as soon as the supplier knows it will receive a chargeback.

Typically, the supplier would be asking for the reversal of an expected fine for a specific [**OTIF metric**](https://supplierwiki.supplypike.com/articles/walmart-otif-metrics):

*   Prepaid On Time
*   Collect Ready
*   In Full

In all cases, the supplier should support the request with any documentation it can provide to help its case. This documentation could be shipping documents, email threads, articles around weather events, screenshots, etc. 

For Prepaid issues, suppliers will want signed **Proofs of Delivery (PODs)**, invoices, and purchase orders showing the order arrived on time. For Collect issues, suppliers will want [**Bills of Lading (BOLs)**](https://supplierwiki.supplypike.com/articles/bill-lading-bol-supplypike) and screenshots of the transportation portal showing that confirmation of the shipment occurred on time.

Additional documentation, such as [**EDI 945s (Warehouse Shipping Advice)**](https://supplierwiki.supplypike.com/articles/edi-945-warehouse-shipping-advice-explaining-edi), may be helpful as well, as these documents show what the warehouse picked and put on the truck.

In addition to supporting the claim, suppliers should try and reflect on the outcomes to determine if there are changes they can make to avoid these issues in the future. Once identified, the supplier should make those changes and share that with their Walmart resource to show that they aim to prevent non-compliance in the future.

Lastly, the supplier will need to send this information to its buyer or replenishment manager.

Suppliers need to remember that Walmart is a valuable customer and aim to be as good a partner as possible. Suppliers should work with Walmart to improve their supply chain process and ensure that goods arrive when needed.

There is nothing preventing suppliers from highlighting OTIF issues with their Walmart resources along the way as they receive new data each week. When monitoring OTIF, suppliers should watch for issues they believe are in error and alert Walmart. Doing so may bring about positive outcomes for being proactive and raising issues as soon as they appear. 

Dispute OTIF fines with SupplyPike
----------------------------------

SupplyPike has made it easy to gather the documentation for disputing OTIF chargebacks within our [**OTIF Radar**](https://www.supplypike.com/otif)  app!

![OTIF Radar -- Invalid Fines Summary](https://lh5.googleusercontent.com/3CxaZ53ic07C-70gxooLN6ZYCSOFXWq56hWsUsQXWou5RkWibB8rBRevo1KU83YK6XXVlzY4LX1hJEyC9Zeznzjha-2xxHFiHv-PaM8z9ytRmb_VI3RsFdsUcRyHstO4Bcdw1euc=s0)

_OTIF Radar – Invalid Fines Summary_

With the click of a button, you will receive an Excel document with PO information and other data, such as ASN discrepancies, Transportation Portal tickets, delivery appointments, and callback requests.

![OTIF Radar -- Generating OTIF Dispute Documents](https://lh6.googleusercontent.com/NQPM1yGamKPmMQcERh4wH2UQsftpd-g2pVt7IrlCA3hlkPJeDqFiu6OUbUpOVOOqbzjhIiZxjdA-qaQoOPY90-C8n0n8rCzgpRyC46sJR-l-jkNTxWdhml2zotfRA_zjWntpOIuP=s0)

_OTIF Radar – Generating OTIF Dispute Documents_

Take this information to your Walmart replenishment team to request a fine reversal. Remember: You must submit the request **before** Walmart charges you the fine.

Getting started with SupplyPike is easy. Go to our [**SupplyPike OTIF Radar page**](https://www.supplypike.com/otif) to take a tour!

[![Document. Dispute. Get started.](https://lh3.googleusercontent.com/sAVfCJZPpa1_JpKj5IzmMiCPyC40NsYG5oTX67kSKsFdf4BNOuVUzwuqHd2jb7ffXU-1CpVZia_rKAfXKzVvj6Qhyyzm2ZyEq5zQmzmx3ykhHNmLJN9J55PjD8bvM4AeZOeZI2RD=s0)](https://www.supplypike.com/otif)

How To Dispute Walmart OTIF Chargebacks

What Do I Do Once I Receive Fines?

Learn all about:

*   Walmart’s new excellence program, SQEP
*   The phases of SQEP
*   Details on Phase 1 of SQEP
*   The meaning of “PO accuracy”

* * *

Walmart has announced that it is implementing a new “**Supplier Quality Excellence Program (SQEP)**” to aid suppliers with supply chain compliance.

What is SQEP?
-------------

Walmart has designed the Supplier Quality Excellence Program (SQEP)  to create a “100% accurate” supply chain, including purchase order accuracy, barcoding and labeling, packaging, loading, and pallet quality. Walmart built the program with expectations of 100% PO accuracy and the receipt of defect-free products.

Walmart’s vision for SQEP is to create quality and excellence for its customers. Walmart believes that this program will increase its supply chain’s efficiency and quality, giving the retailer a distinct advantage over its competitors. Its mission is to achieve the lowest cost, best-in-class supply chain by removing impediments, defects, and inadequacies.

SQEP’s purpose is to reduce supply chain costs overall, not to increase them. The program should improve order accuracy and visibility into orders’ production, procurement, and logistics. The idea is to create “First Time Quality” (FTQ), meaning Walmart receives the ordered items from its suppliers when they have agreed to deliver them. Walmart is applying this program to all of its distribution networks, including e-commerce fulfillment centers.

Walmart hopes that the program will create a “best-in-class supplier experience” and includes a rigorous education program. It will implement a dashboard portal to track SQEP progress, PO accuracy, and performance results. The portal will be available on **November 2, 2020** (otherwise known as Walmart Week 40 FY 2021).

Phases of SQEP implementation
-----------------------------

Walmart is implementing SQEP in four phases:

1.  Accuracy and Advanced Ship Notice
2.  Barcode and Labeling
3.  Load Quality, Label Quality, and Packaging
4.  Scheduling and Transportation

As of September 1, 2020, the retailer has only released details about Phase 1, which begins **February 1, 2021**. A pilot version of the program will start on November 1, 2020, and will run through January 2021. SupplierWiki will provide more information about the SQEP program as it progresses.

### Phase 1a – Item Data Accuracy

Suppliers may already be familiar with **Item 360** as a way of uploading information about new and existing products. **Beginning September 15, 2020, all item setup and maintenance must go through Item 360**. Suppliers can change warehousing data, case pack sizes, item images, and other data in this portal in Retail Link, under “Apps.” Walmart requires suppliers to register for training in Item 360.

Walmart Import items and pharmacy products may continue to use the Online Item File found in Retail Link.

### Phase 1b – PO Accuracy

**Starting November 2, 2020, suppliers may use the SQEP portal to review POs** for accuracy and track down what Walmart calls “defects.” (A pilot version of the portal will be available on October 15, 2020, to limited suppliers.) The portal will have a “detailed drill-down” analysis of PO performance, and it will display a score and defects-per-million metric.

**The SQEP standards are available in Retail Link Supplier Academy.** Walmart expects its suppliers to review these standards as soon as possible. Additionally, the retailer asks suppliers to create an “**accuracy action plan**” for US stores and e-commerce deliveries. This plan should take into account goals and metrics the supplier may already be tracking, such as:

*   **Quality Assurance:** Suppliers should track errors in their supply chain and attempt to correct them. Additionally, they should avoid item substitutions and, instead, work with their replenishment managers on updating POs to avoid SKU inaccuracies.
*   **Accountability:** Suppliers should have set goals in mind for their supply chain (especially if they are already compliant with OTIF objectives). They should hold the individual links accountable for poor picking standards and over- or underfilled orders. Walmart expects orders to arrive exactly as they requested on the PO.
*   **Item File Accuracy:** Suppliers should update their items within Item 360 when case or warehouse pack sizes change. They should also make sure they stay on top of changes to their items within that portal. The Item File should always match what the supplier is shipping.

Walmart will begin to hold suppliers accountable for PO accuracy starting February 1, 2021. During this phase, Walmart will start deducting fees from invoices for defective orders. There will be an administrative fee as well as a handling fee per unit for these invoices. Walmart will determine this fee after the pilot period. (SupplierWiki will update this article as soon as we have this information.)

### Phase 1c – Advanced Ship Notice (ASN)

Starting February 1, 2021, **all domestic POs shipping to Walmart distribution and fulfillment centers** will need an [**EDI 856: Advanced Ship Notice (ASN)**](https://supplierwiki.supplypike.com/articles/edi-856-ship-notice-manifest/)**.** Pharmacy, Direct Store Delivery (DSD), and Direct Store via Distribution Center (DSDC) are exempt. These POs will continue with the current program.

**Walmart will require ASNs** to improve inventory visibility. Walmart will post updated ASN guidelines in Supplier Academy on October 1, 2020.

Update to ASN compliance
------------------------

Walmart will require ASNs to improve inventory visibility. Walmart requires three qualities for its ASNs as submitted by the supplier: 

*   Data accuracy
*   Completeness
*   Timeliness

### Data accuracy

ASNs must have accurate data on them. This means that all ASNs must have the same lines that were on the **original Purchase Order (850)**. The ASN lines must match for each line item that was on the PO. Walmart has stated that while this is a requirement for “accurate” ASNs, the retailer will not consider ASNs with inaccurate PO lines invalid for SQEP purposes and, therefore, these ASNs will not incur penalties.

ASNs must also have accurate item information on them. This includes such data as item UPCs and GTINs, pack size information, and expiration dates. This information allows Walmart to ensure that the ASN matches the PO for each item ordered. 

ASNs without accurate item information will result in SQEP penalties. The item information must also match the item data listed in the item file in Item360.

ASNs must have accurate and true quantity information. The quantities listed on the ASN must match the quantities requested on the PO. Additionally, the quantities on the ASN must completely match the quantities in the physical shipment. Otherwise, the order will incur SQEP penalties.

### Completeness

All ASNs received by Walmart must be complete. ASN completeness means that the ASN matches the guidelines for a proper ASN listed on Supplier Academy with all of the data required.

Suppliers should also set up Functional Acknowledgments (EDI 997) and Application Advices (EDI 824) to monitor ASN transmissions. An EDI 997 will show when Walmart’s EDI system receives the ASN. 

Walmart transmits EDI 824s when there is an issue with the data in an ASN. For example, if the global location number for the Walmart store is invalid, Walmart will send an EDI 824 stating such. Typically, such errors will occur with manually entered orders that skip fields or have inaccurate information.

If a supplier submits an ASN that is incomplete, Walmart will invoice fines for that infraction. Suppliers who receive an EDI 824 typically have 24 hours during which to correct the invalid ASN and resubmit it to Walmart.

### Timeliness

Walmart expects to receive ASNs before the physical shipment arrives at the distribution center or fulfillment center. Valid ASNs should arrive before the trailer doors close and the DC or FC finalizes the shipment.

Walmart considers an ASN “On Time” if a valid EDI transaction occurs before the gate during the time of the physical shipment’s arrival at the DC or FC.

### SQEP penalties for ASNs

Walmart will fine for ASNs based on a comparison of the PO to the physical shipment. There are two defect types that may occur with unacceptable ASNs:

*   **ASN Not Downloaded:** This defect occurs when the shipment does not have a corresponding ASN. This may occur due to an issue with the EDI provider or VAN or because the supplier has not properly set up their EDI connection.
*   **ASN Mismatch:** The items or quantities on the ASN do not match what was in the physical shipment. Such issues may cause errors on an EDI 824, which would mean that Walmart may not receive the valid ASN on time.

Walmart now expects a complete, accurate, and timely EDI 856 for each and every shipment to its distribution centers and its fulfillment centers. The key here is that the item information and quantity values on the ASN match what Walmart ordered on the PO and has received.

What does PO accuracy mean?
---------------------------

Walmart defines **PO accuracy** as the receipt of items as ordered within the delivery window. In other words, the items must arrive at their destination DC in good condition as listed in the PO. Walmart will still allow PO changes. Suppliers should keep an open channel of communication with their replenishment managers.

The main idea of PO accuracy is that items received at their destination distribution center must match the items ordered on the PO in good condition (“defect-free”). Walmart expects suppliers to invoice for the items they shipped as ordered. In other words, **do not overfill, short-ship, or ship substitutions.** 

Walmart measures PO accuracy by dividing the number of defects in the shipment by the number of PO lines subtracted from 100% to find the percentage of accuracy. 

### ![PO Accuracy = 100% - (number of defects divided by number of PO lines)](https://lh3.googleusercontent.com/TuFZniA-5Lo3mPNe-FDQJB8NzH0c1dGWIkNwZEWSAS0-16oVq-scBDdSmGHO3vX4L5fQlQnlErelYGR8TscPCGFVB6Jl14tMh0o8IwF9gD7xxNGZ1WCOjb4m5cQfD3EEmcX0xki3=s0)

*PO Accuracy = 100% - (number of defects divided by number of PO lines)*

### Why is PO accuracy important?

Walmart is taking PO accuracy very seriously. It considers accuracy to be the oil in its supply chain. Its sources say that millions of dollars of orders are sitting daily in “problem” freight (i.e., orders that contain items that are not sellable). It estimates that receiving associates log thousands of tickets daily for orders that are defective and have problems with processing due to PO inaccuracies.

PO inaccuracies cause a **waterfall effect** where receiving associates must remove defective merchandise and notify the problem freight department. This ticket goes to another associate who must create a problem freight ticket to send to the Walmart Home Office for disposition. Once HO resolves the issue, the problem freight associate must scan and label the order to pass it back to the DC or FC to continue processing.

### How do I improve my PO accuracy?

PO accuracy applies to all links in the supply chain. Manufacturers must replenish the correct amount of products according to supply plans in an accurate and timely manner. Suppliers must ship the ordered amount of products without substitutions and according to the Item File. They also must ensure that their Item File is always up to date and reliable. Orders should arrive at the DCs on time and according to the PO, and the ordered products should be available for shipment.

Walmart has created a list of defects that can occur with POs. Avoiding these defects can improve accuracy and help suppliers avoid fees.

*   **Allocation Issue:** The supplier shipped an order to the wrong DC/FC type, specifically for facilities that do conveyable sorting versus those that can sort larger items.
*   **ASN Not Downloaded:** There was an issue with downloading the EDI 856 ASN report for DSDC orders.
*   **ASN Mismatch (Non-DSDC only)**: The ASN contained line items where the quantity on the ASN does not match what Walmart received.
*   **Canceled Line:** The supplier has shipped an item after Walmart canceled the line item on the PO.
*   **Canceled PO:** The supplier has shipped an entire PO after Walmart has canceled it.
*   **Date Issue:** The supplier has shipped an item that has expired or is otherwise not compliant with the date requirements listed on the PO.
*   **Haz-Mat/Compliance Flag:** The supplier has shipped a hazardous material without the proper documentation, markings, etc., or sent a hazardous material to a location that does not have the facilities to handle it.
*   **Imagery:** The supplier has incorrect or incomplete information in the Item File for e-commerce items only. This defect does not apply to brick-and-mortar suppliers.
*   **Item Not on PO:** The supplier has shipped an item that was not on the original PO, typically as a substitution.
*   **Item Set up:** The supplier has not set up the item correctly in the Item File, including missing or inaccurate information, specifically causing delays in processing or receiving.
*   **Load Infestation:** The carrier’s trailer contains mold, mildew, insects, or other foreign objects that can cause infestations.
*   **No ASN Label (DSDC only)**: Walmart received cases on which there were no **[Serial Shipping Container Code (SSCC)](https://www.gs1us.org/DesktopModules/Bring2mind/DMX/Download.aspx?Command=Core_Download&EntryId=177)** labels. The SSCC should be in the MAN segment of the EDI 856.
*   **Not Walmart Freight:** The supplier has shipped items to a Walmart DC intended for another customer (e.g., Target or UNFI).
*   **Overage:** The supplier has shipped more items for a PO line item than what is on the original PO.
*   **Parent-Child:** The supplier has not successfully or properly linked the “child” item’s UPC with the “parent” item’s UPC in the Item File (e.g., individual colors of a brand of plastic cups).
*   **Quality Issue:** The supplier has shipped an item that has damage, is defective (i.e., is broken or doesn’t work), or is otherwise unsellable in its current condition.
*   **Recall/Withdrawl:** The supplier has shipped an item on which an agency has issued a recall, or the supplier (or a third party) has otherwise removed an ordered item from the shipment.
*   **Rework:** The DC has re-packaged the shipment in an unacceptable manner, including relabeling, [poly-bagging](https://www.uline.com/Cls_01/Bags-Poly-Plastic), boxing, taping, or other changes.
*   **Unscheduled (WFS Only):** The supplier did not schedule an appointment with the DC – applies only to Walmart Fulfillment Services.
*   **Wrong DC:** The supplier, carrier, or 3PL shipped the order to a DC that was not on the original PO.
*   **Wrong Pack:** The supplier has shipped an item or items with a vendor pack quantity that does not match what was on the original PO.

Walmart will implement the standards of **100% PO accuracy** in Phase 1 of SQEP starting on February 1, 2021. Walmart will begin fining for PO inaccuracies beginning on March 31, 2021, for February’s defective orders.

SQEP fines
----------

Walmart will induce fines for defective ASNs and POs per purchase order. Each defect occurs on a PO level and a unit line level. For an inaccurate PO, Walmart fines $200 for the defective PO and $1 per handled line item. For an ASN defect, Walmart issues fines based on whether the PO is **Direct-to-Store, Shipped through DC​ (DSDC)**.

### PO Defect Fine Example

If a supplier receives a PO for **100** items but ships an overage of **120** items, then Walmart will fine the supplier $**200** plus an additional $**20** for each line item over the original PO quantity for a total of $**220**.

In another example, if a supplier receives a PO for **50** widgets and the supplier ships **25** broken widgets, **25** intact widgets, and **50** gadgets, then Walmart will submit a fine schedule in this way:

*   $**200** for the “Quality Issue” defect
*   $**200** for the “Item Not On PO” defect
*   $**1** for each broken widget for a total of $**25**
*   $**1** for each extra gadget for a total of $**50**

These defects and line items would come to a total of $**475**.

### ASN Defect Fines

If Walmart cannot download the ASN (“ASN Not Downloaded”), it will charge the supplier a fine. For DSDC POs, the fine is a **$200 flat fee per PO**. For non-DSDC POs, it is a **$25 flat fee per PO**.

Additionally, for non-DSDC POs with an ASN mismatch defect, there is no overall PO fee, but Walmart fines **$0.25 per case with mismatched quantities**.

Walmart plans to start issuing fines on March 31, 2021, for POs starting on February 1, 2021, for PO defects. For ASN issues, Walmart will issue fines on July 1, 2021. Suppliers can see their defective POs and ASNs in the SQEP Portal on Retail Link.

There will be a cap at the PO header level for SQEP fines such that the fine does not exceed **30% of total cost of goods sold (COGS)** on each defective PO.

In the event of an invalid SQEP chargeback, Walmart suppliers may use the High Radius portal to submit a dispute. This process is the same as with other Accounts Receivable Walmart deductions. To submit a dispute, suppliers should include:

*   PO number
*   Item number
*   Defect type
*   Distribution center
*   Impacted cases

Suppliers may obtain and review their order backup documentation and information in Retail Link on the **[SQEP Dashboard](https://sqep.walmart.com)**.

[![Walmart data has never been easier.](https://lh5.googleusercontent.com/KQ2evLyaQl_vQ2sR8B0aOk3VN8pHMspQoYYBF-jTFoG3TpjDrYe67coebGOHXnRI_7pt9Bth8-p8SiRJbq46SegtiGP_NYeMiwrlmkkpXymT4BVCJsxGsHuxfK6dO67l2qvhhame)](https://www.supplypike.com/)

Walmart’s New Supplier Quality Excellence Program (SQEP) – Phase 1

Learn about:

*   Walmart’s SQEP requirements for .com barcodes and labeling
*   Acceptable pack types and packaging
*   How Walmart uses the VCOE process to handle fines

* * *

Walmart is a massive retailer both physically and online. Due to the number of Walmart customers, it may be advantageous for a business to **sell its products on Walmart.com**. Now is a crucial time to understand the new requirements when shipping with Walmart with online retail booming.  

Walmart is now implementing a [**Supplier Quality Excellence Program (SQEP)**](https://supplierwiki.supplypike.com/articles/walmarts-new-supplier-quality-excellence-program-sqep-phase-1/) to help suppliers maintain supply chain compliance. The goal is to reduce handling costs and expedite the shipping process. SQEP applies to all online suppliers using **Walmart’s fulfillment centers (FCs)**. There are a few tricky areas that differ from previous requirements, and suppliers should review these carefully.

The packaging and labeling requirements for SQEP compliance have a few distinct steps that are important for the supplier to understand **before shipping any** [**consumer packaged goods (CPG)**](https://supplierwiki.supplypike.com/articles/defining-consumer-packaged-goods-cpg/).

How can I stay SQEP compliant?
------------------------------

Staying SQEP compliant is essential going forwards when shipping from Walmart FCs. Once a supplier begins shipping, it is time to monitor progress. 

Monitor SQEP compliance online using **the SQEP portal**. On the portal, suppliers can view SQEP compliance, PO accuracy, and performance results. The portal is accessible from **Retail Link**. 

1.  Go to [**Retail Link**](https://retaillink.login.wal-mart.com/). 
2.  Click **Academy**.  
3.  Click **Ordering & Replacement**.
4.  Click **Shipping, Routing**.
5.  Click **Walmart.com Packaging & Labeling**.

Supplier Academy has outlined the requirements in great detail, and these guidelines are visible within the SQEP portal. We have detailed some essential components in this article. 

What are the SQEP e-commerce packaging and labeling requirements?
-----------------------------------------------------------------

Walmart is implementing SQEP in four phases:

*    Phase 1: PO Accuracy and Advanced Ship Notice (ASN) – migration to Item 360
*    Phase 2: Barcode and Labeling
*    Phase 3: Load Quality, Label Quality, Packaging
*    Phase 4: Scheduling & Transportation

Using SQEP, Walmart aims to reduce overall supply chain costs by standardizing each container through its FCs. The goal is SQEP is to ship 100% defect-free orders from its suppliers. 

Each step impacts the supply chain, starting with the barcode.

GTIN-14 requirements
--------------------

SQEP requires a [**GTIN-14**](https://supplierwiki.supplypike.com/articles/what-are-the-different-item-codes/#14-digit-global-trade-item-number-gtin-14) which is a modified UPC. 

1.  The **online item file** must match what the supplier has printed on **the UPC label**. If using a 12-digit UPC, first **add a leading 0 to the UPC**. 
2.  Establish the **packaging identifier (PI)**. 
3.  Calculate a **neck check digit**. Suppliers can do this calculation using an [**online calculator**](https://www.morovia.com/education/utility/upc-ean.asp). 

The UPC must match what is on the PO. The Unit UPC and Case UPC must match precisely with the Item 360 setup.

Pack types
----------

There are different pack types to be aware of and comply with when using SQEP. 

### Vendor pack

The vendor pack is what the supplier will ship directly to Walmart. The v**endor pack must match** what is in Item 360. For the vendor pack, the quantity is **the number of selling units in the case** shipped to the FC. 

### Warehouse pack

Walmart does not use the warehouse pack for e-commerce. Warehouse packs go from a Walmart distribution center to physical store locations. The quantity for warehouse packs is **the number of selling units within the inner packaging**.

### Ship-As-Is 

Sometimes called **Ready-to-Ship** or **Ship-In-Own-Container (SIOC)**, these products must be ready to send directly to the consumer. For this type, **the supplier carton** must be capable of serving as **the outbound carton**. These oversized items include rugs, mattresses, sturdy cushions wrapped in plastic, and stackable storage bins. 

Furthermore, all selling units that exceed **25in x 20in x 14in**, **30lbs**, or **3.25 cubic feet** must be able to ship as is January 2nd, 2021. 

### Mixed master pack

Walmart advises against the **mixed master pack** type due to its **more substantial margin for error**. 

Mixed master packs aggregate multiple vendor packs within one single carton. **Do not combine different POs within the same carton.** Combining POs can result in delayed payment, product refusals, delayed processing, and other costly errors.

However, suppliers may use this pack type when **multiple small items can fit in a master carton**. Add two labels on the long sides of the carton. These labels should be **the color red with black font**, preferably Arial in 48pt and all capital letters. 

Because this is an unreliable pack type, suppliers must be careful when labeling and follow all other directions to **avoid Vendor Correction of Error (VCOE) fines**. 

Packaging
---------

When shipping with Walmart, the supplier or its 3PL must **polybag all inner units** to comply with the SQEP standards. Walmart requires **seals on fabric goods**. 

### Apparel

When shipping **apparel**, suppliers must **pre-fold every item** with a barcode on the lower right. **No hangers or extra items** are permissible; the supplier must only ship the fabric goods. 

### Corrugated box testing requirements

Cardboard cartons must meet specific testing requirements to sell with Walmart. These requirements include:

*   **Edge crush test**
*   [**Mullen bursting test**](https://psimd.com/box-strength/)
*   **Box makers’ certification** 

The supplier must ensure these are visible on the carton before shipping. 

### Load quantity/pallet standards 

There are a few critical measurements to follow when shipping pallets with Walmart. The **minimum pallet standards** are:

*   Width: **40 inches**
*   Length: **48 inches**
*   Deck coverage: The maximum spacing between each dock board is **4 inches**
*   Grade: **Grade A, 4-way, flush** and **non-reversible (R)**

Pallets must support the weight of the products shipped within them. Supplier must make sure that their pallets are strong to comply with SQEP. 

It is also crucial to remember that **pallet height must not exceed 96 inches**. The length must be a **minimum of 48 inches** to fit the racking in the FC. Suppliers and their 3PLs must properly **block and brace all pallets** for shipping to proceed, and **overhang is not acceptable** under any circumstances. 

For domestic orders, pallets must be ready for **full truckload (FTL)** and **less-than-truckload (LTL)** shipping. They must **meet or exceed Grade A standards**. Direct import orders cargo must be **floor-loaded on a slip sheet** unless otherwise stated on the PO. The FC may accept non-standard pallets when **trailer cubes are a factor** in the shipping process. 

[**_Related Reading: What is TI/HI?_**](https://supplierwiki.supplypike.com/articles/what-is-ti-hi/)

Not following the guidelines can result in fines and chargebacks, so always reach out to [labeling@Walmart.com](mailto:labeling@Walmart.com) with custom pallet questions and concerns. 

The Vendor Correction of Error (VCOE) process
---------------------------------------------

The **Vendor Correction of Error (VCOE) process** begins with the facility identifying an SQEP defect. From there, the FC will submit a VCOE ticket. The **Pack and Label Team** will review the ticket for validity. 

Walmart will file a **chargeback** after review. The supplier will then **receive an email** from the VCOE team ([notify@quickbase.com](mailto:notify@quickbase.com)). The supplier will have to reply to the email with a **plan of corrective action** within five days. 

The VCOE team will then review the corrective action. From there, the VCOE team will waive the chargeback, or it will proceed. Walmart processes chargebacks at the end of the month. Each chargeback has a **$200 administrative fee** and **$1 fee per unit**. 

To dispute chargebacks, file a dispute. Disputes have a **60-day deadline** and must be filed with the **Global eCommerce Transportation Support Portal (GEC TSP)**. For a successful dispute, ensure updated contact info with the Vendor Compliance Team. To update contact information, open a **Vendor Compliance – Requests and Questions ticket**. The ticket type will be Update Contact Info. Do this right away to avoid any additional problems. 

**Email sample labels** (shipping label and carton markings) to [labeling@walmart.com](mailto:labeling@walmart.com) for review. 

To avoid unnecessary fines, always check the Walmart.com SQEP portal **before shipping and continually monitor shipping progress**. Walmart designed SQEP to improve the shipping process for the supplier, Walmart, and the consumer.

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SQEP e-commerce Packaging and Labeling

Supplier Quality Excellence Program (SQEP)

To educate suppliers on Walmart compliance (OTIF & SQEP) with what to watch for and tips & tricks