Walmart Now Requires 98% On-Time In-Full (OTIF) Compliance from Suppliers

Set a 98% OTIF target and align all functions behind it. Thinking ahead, align incentives to OTIF to drive behavior across teams. Build an internal plan that guarantees delivery on time and in-full, and offer a reliable service Walmart can trust, quite dependable. Use a simple, cross-functional operating rhythm to tighten planning, move decisions faster, and reduce variance across lanes.

Those who lead with rigid programs will win this shift. Establish a clear strategy that ties supplier scores to a short list of codes for exceptions, dock reallocation, and prepaid freight where possible. This means faster decisions and fewer excuses. Create an account-level dashboard that flags missed milestones and triggers proactive corrections.

Addition to core processes: hang alerts when shipments slip, assign internal owners, and require daily reconciliations. Your membership in Walmart’s OTIF program becomes a business credential: it signals reliability to buyers and helps you lock in preferred placement.

To operationalize, implement a four-step play: map the supply chain, measure on-time performance weekly, manage exceptions with fast reroutes, and monitor prepaid terms to ensure cash flow remains healthy, without adding cost. Making these links explicit reduces risk and makes compliance largely predictable.

Incumbents who ignore 98% OTIF will lose bidding favor; those who adopt these steps can grow their Walmart account, earn favorable membership terms, and strengthen their offer by delivering consistently, even under tight windows.

OTIF 98% Compliance with Walmart: Redwood 3PL Partner Plan

Adopt a real-time OTIF dashboard that targets 98% on-time in-full for Walmart shipments. This means every shipment line updates automatically from WMS and TMS into a single view accessed by Redwood, suppliers, and Walmart reps. The software triggers expedited actions when risk surfaces and logs root-cause data to inform development efforts across months.

Identify root causes across four categories: planning gaps, execution delays, carrier service disruptions, and documentation errors. They own fixes: planning leads for floor-level shipments, carriers for transit reliability, suppliers for packing accuracy. Regular reviews reveal trends and confirm corrective steps. When issues appear, use emails to alert teams and speed recovery.

Roll out timeline: within 2 weeks standardize ASN and packing formats; within 1 month enforce dock appointments and pre-load checks; within 3 months achieve 98% OTIF on top SKUs while sustaining 90% on others. The plan integrates multiple data feeds from WMS, TMS, and ERP to keep numbers correct; dashboards accessed by Dennis and Redwood operators for timely decisions will sharpen alignment.

Floor-level controls focus on a simple checklist for loading docks: correct labeling, carton contents, accurate ASN, and verification of PO numbers. This reduces causes of mispack, mis-shipment, and late arrivals. Redwood works with suppliers to expedite, expedited actions, and re-prioritize lanes so floor-to-door times stay within target.

Measures and governance track regular KPIs: OTIF rate, percentage of issues closed within 24 hours, average time to correct and ship, and issues per month by vendor and facility. Use multiple data points to validate results and adjust the development plan. Accessed dashboards show floor-level performance; the insights help businesses compete with amazon and similar retailers.

Supplier readiness steps include ensuring API access to the dashboard, providing accurate data feeds, maintaining ASN discipline, and setting up rapid escalation paths. By aligning with Redwood’s plan, they will sustain 98% OTIF and reduce disruption costs, turning Walmart’s requirement into a competitive advantage for your business.

Walmart OTIF 98% Compliance: Partner with Redwood Logistics for a Trusted 3PL

Partner with Redwood Logistics now to achieve Walmart OTIF 98% by launching a two-week readiness sprint, appointing a dedicated OTIF lead, and locking a 90-day execution plan with measurable milestones.

Set a joint OTIF playbook that standardizes packing, labeling, and ASN processes, ensures early visibility of lead-time risks, and uses real-time dashboards to sort exceptions by severity. This approach keeps your team focused on the most impactful issues and lets you scale operations as demand grows. If youve tracked current OTIF, you know where to focus.

Redwood’s program maps across areas such as packing, inbound quality checks, outbound staging, and dock scheduling, with a census-based view of shipments to highlight shortage-type risks and trigger proactive actions. Whereas internal handoffs often break the chain, Redwood integrates planning, execution, and exception handling in a single flow.

In practice, clients report lead-time reductions and a likely lift in OTIF, with examples showing a 2-6 point improvement within the first 60-90 days. This momentum helps you compete with amazon on delivery reliability while maintaining cost discipline and a focus on wellness and safety for your team.

What makes Redwood different is a step-by-step discipline that couples a knowledge-driven approach with technology. They used standardized data models, early warning signals, and a cross-functional team to drive results. The result is a process that can scale, with predictable outcomes and continuous improvement.

Next steps include a couple of workshops, a joint data-sharing setup, a dedicated OTIF team, and weekly reviews to lock improvements. whats clear is that a data-driven, collaborative approach delivers measurable OTIF gains and a stronger supplier relationship.

Define 98% OTIF In-Full: what counts toward delivery metrics and exceptions

Recommendation: Define OTIF In-Full as deliveries that arrive within the agreed delivery window and contain the full quantity of all items on the purchase order. Target 98% across shipments and review metrics weekly to catch drift early. Build a simple plan, assign a dedicated manager, and align supplier expectations to reduce costs and improve customer satisfaction.

Whats counted toward delivery metrics: each PO line item must be delivered on time and in full; on-time means the received date falls within the agreed window; completion means exact quantities per SKU, correct storage location, and proper packaging. Invoices must align with the received goods, and mismatches or partial receipts count as exceptions that reduce OTIF performance. Track edge cases where a single SKU miss or wrong carton breaks the full fulfillment.

Exceptions include: backorders that are confirmed with the buyer, approved substitutions, damaged or unusable goods, mis-shipments, missing items due to warehouse or carrier delays, inbound receiving problems, and invoices that do not match the shipment records. Each exception requires a documented reason and the precise impact on completion to keep the general ledger and supplier scorecards accurate.

Example: 100 shipments in a month, 98 meet the 98% In-Full rule, 2 fail due to missing SKUs. OTIF equals 98%. If you break down by warehouse, you may uncover shift patterns: 2 warehouses drive 60% of misses, guiding targeted fixes in processes and storage layouts.

Plan for improvement: standardize processes across warehouses, share forecast data with suppliers, and implement proactive alerts before shipments depart. Engage in negotiations to close gaps, and quantify the costs of non-compliance to justify changes. Add cross-docking or improved packing as addition improvements to raise completion rates and reduce rush invoicing costs. Use a general dashboard to monitor performance and align on whats needed to close gaps quickly.

To strengthen tracking, consider a blockchain-based traceability pilot that records each shipment leg from Smith’s supplier network through warehouses to storage. Regular manager reviews ensure accountability, and training topics reinforce what constitutes complete deliveries. A concise monthly scorecard supports growth in the supplier base and keeps customers satisfied with steady OTIF performance.

How Walmart audits supplier OTIF: data requirements, cadence, and reporting

Recommendation: Align OTIF data definitions to Walmart’s APDP schema and launch a 60-day pilot that covers dozens of SKU lines from multiple suppliers, then scale to months 1–3 of a full rollout.

Data requirements for the audit center on three pillars: what moves, when it moves, and how it is measured. Ensure every record includes PO, item, sizes, UPC, supplier ID, and a unique apdp reference. Tie the shipment to its receiving event with a ship date, promised date, and receiving date, plus quantities shipped and delivered. Include OTIF outcome flags and any exception or dispute codes to support root-cause analysis. Keeping apdp in sync with the warehouse receiving system avoids drift across months and years. Build a census of shipments by store membership and by network node so the auditor can reproduce every result. For a robust audit, the same data model must feed internal dashboards and Walmart portals, so the data lineage remains explicit for dozens of stakeholders. Being strict on data lineage helps you know the source of every value. In industry discussions, theyd talked about data quality as a prerequisite, and Walmart’s approach pushes that effort forward. In practice, this data package should be traceable, testable, and ready for dispute handling.

Cadence and workflow: Walmart typically runs monthly OTIF reviews, with a first-pass data cut within 15 days after month-end. In a pilot, test two cycles per item to validate data integrity before expanding. After the first 3–6 months, extend to years of historic data to identify trends and persistent gaps. Within this cadence, the internal audit team, including an auditor and an internal data owner, should align on standard dispute windows and timelines. In the first months, many retailer teams talked about aligning timelines with receiving, inventory, and store topology so the same standards apply across dozens of locations. This keeps the portfolio consistent and makes the future audits smoother.

Reporting and actions: generate a standard report pack that includes target OTIF, current achievement, gaps by item and by sizes, and receiving location, plus a disposition for each dispute and a clear path for disputing items. The pack should show root causes (late ship, short delivery, or incorrect quantities) and recommended actions for suppliers to close gaps before the next cycle. Use a same template across all suppliers to ensure consistency; this discipline improves membership alignment and makes it easier for retailers to compare performance. The reporting should also show trends by item and by network, enabling the retailer to anticipate availability issues to customers. Think of OTIF as a joint accountability where the auditor smith reviews reconciliation steps and signs off on data quality. This makes the data flow traceable and helps you know where to focus process improvements. Thed emphasis on disputing workflows ensures disputes are resolved quickly and slated for remediation in the next cycle.

Operational tips for suppliers: establish a single source of truth in apdp, ensure the receiving feed populates the key fields in near real time, and keep the test environment in sync with production to validate changes. Engage in regular talks with your internal teams and, if needed, with the supplier named smith when disputes arise. Plan for future audits by maintaining a continuous census of shipments and a robust disputes log; this approach helps you maintain data quality across months and years, and demonstrates your commitment to OTIF targets. Theyd focus on building stronger, more consistent data feeds, and the retailer will see higher item availability and fewer disputes. If you know the data lineage and the steps that link every shipment to the OTIF result, your team can respond quickly when disputes arise and drive sustained improvement in availability.

Redwood Logistics capabilities: network breadth, technology, and exception handling

Recommendation: Deploy RFID tagging across Redwood’s network and implement a centralized exception-handling tool to achieve a 25% reduction in OTIF late or not-in-full events within 90 days. The tool should ingest RFID scans, carrier updates, and WMS events to surface actionable alerts within minutes and support corrective actions collaboratively.

Network breadth: Redwood operates 42 facilities, 12 regional hubs, and 6 cross-dock centers, backed by 180+ contracted carriers. The footprint spans North America and key European corridors, placing inventory within a one- to two-day reach of most major consumer markets. This scale supports rapid re-routing during peak periods and allows for much more resilient middle-mile execution, reducing the risk of large late spikes when sizes and volumes vary.

Technology: The stack combines RFID readers at inbound/outbound points, GPS-tracking on fleet assets, and a cloud-based data layer feeding API-enabled WMS/ERP integrations. A single monitoring tool presents live status, ETAs, and exception codes, enabling auditors and officers to verify data validity and trace actions. Leveraging analytics, the platform flags patterns that look like potential disruptors, enabling proactive course corrections before shockwaves hit consumers.

Exception handling: Predefined SLAs trigger automated alerts for deviations, with escalation paths from dispatchers to operations officers. If a delay arises mid-route, the system assigns alternative carrier capacity within days and logs every action for rapid root-cause review. This approach keeps doing, not just noting issues, and provides a clear, auditable trail for internal reviews and regulatory checks. The emphasis on monitoring and timely intervention helps maintain service levels even in quite dynamic conditions.

Practices for suppliers: align tagging and data standards with Redwood from day one, share accurate ETAs and visibility windows, and maintain valid SKUs and lot information in the system. Use RFID to tag pallets and cases where feasible, and provide consistent enterprise data that supports a single source of truth. Regular collaborative reviews with Redwood’s operations officer ensure what’s actionable is acted on promptly, minimizing late events and creating a smoother course for customers.

Operational steps to close gaps: demand forecasting, visibility, and replenishment cycles

Recommendation: Build a 12-week rolling forecast tied to replenishment calendars, reviewed weekly with the buying and logistics teams. In november, lock the baseline forecast and set strict targets to minimize gaps. Establish penalties for repeated misses and track adherence by item and line.

Demand forecasting relies on data science, but requires practical inputs. Gather POS data by item from lines and combine with promotion calendars, seasonality, and supplier lead times. Create a forecast model that stakeholders across buying, planning, and supplier networks can validate. Here, mccall expertise helps confirm assumptions. Engage the team together to ensure consensus; oftentimes, misalignment stems from siloed data sources. Keep a single source of truth and formalize the consensus process.

Visibility: Build a live dashboard showing on-hand by item, safety stock, PO status, and in-transit timing. Communicate status with suppliers via API or EDI; extend visibility to stores and DCs to reduce time-to-reaction. Use alerts at set thresholds so planners act before stockouts. From lines to shelves, visibility shortens the feedback loop and improves timing of replenishment.

Replenishment cycles: Define cadence: weekly for core SKUs, biweekly for slow movers. Use fixed order quantities for most items, with dynamic sizing for top sellers. Establish reorder points and safety stock per product; adjust for seasonality and promotions. putting together a replenishment playbook that formalizes timing, quantities, and picking operations is a super way to drive consistency. Include packing, transportation, and store receiving windows. Pilot with a small set of lines before broad rollout.

People and process: Train planners to communicate decisions, keep notes, and share updates across teams here. talked with suppliers like amazon and mccall to confirm guidelines; ensure cadence sticks. Use a collaborative planning rhythm, including weekly syncs and monthly reviews, to keep item flow smooth and to avoid penalties. Never assume that one team knows the other’s plan; keep everyone together and aligned.

Contracting with a 3PL: SLAs, penalties, remedies, and onboarding timeline

Recommendation: Lock in a 3PL contract with explicit SLAs tied to OTIF metrics, hard penalties for misses, and a concrete onboarding timeline. In this context, the supplier does deliver consistently, and Walmart expectations meet the market’s demand signals.

1. SLA design and scope – Establish clear definitions for on-time and in-full delivery, including delivery window, quantity tolerance, packaging, and condition. Specify data sources, reporting cadence, and who owns the scorecard. Ensure the 3PL tends to operate without gaps during peak periods and that metrics cover the full purchase order lifecycle from request to receipt. The plan should include routine communication with JetCom and the supplier’s team, with a simple escalation path for exceptions.

2. Measurement, data, and accountability – Require real-time visibility, with daily feeds and exception codes that map to root causes. Deliver dashboards that stakeholders can access in the context of each region. The 3PL must deliver accurate data to inform decisions, and the supplier should actively participate in data remediation when gaps appear. Here, you can utilize standardized data formats to reduce back-and-forth and keep questions to a minimum.

3. Penalties and remedies – Tie penalties to specific misses by incident, not by month-end totals. Implement service credits, refunds, or replacement shipments for repeated gaps, with caps that protect both sides. Clearly outline remedies for late or partial deliveries, incorrect quantities, and damaged merchandise. Include a 60–90 day ramp for new processes, so any levy aligns with actual performance rather than isolated events. The exemption clause should cover force majeure and other agreed exceptions, with a documented notice period.

4. Onboarding timeline – Map a phased ramp: week 1–2 for contract alignment and system mapping, week 3–4 for data integration and test shipments, week 5 for pilot runs, and week 6 for go-live with live orders. Set milestones for API or EDI integration, WMS hooks, and label validation. If you want a smooth start, designate the primary owner (for example, Dennis) and the second contact (Eric) to keep the course on track and address questions promptly. Keep the left side of the timeline tight by clarifying responsibilities early so the supplier can meet ambitious but realistic targets.

5. Exemption management and escalation – Document common exemption scenarios (weather events, port delays, supplier capacity constraints) and define how to request extensions without triggering penalties. Create a straightforward escalation flow if performance gaps persist beyond agreed thresholds. Encourage the supplier to communicate early when issues arise so you can adjust purchase schedules or reroute shipments without causing consumer impact.

6. Governance and roles – Assign a small leadership group (including a representative like JetCom, with input from Dennis and Eric) to review quarterly performance, approve changes to penalties, and validate remedy adequacy. This structure keeps the process lean, reduces friction, and aligns with a retailer’s tight OTIF expectations. Here, frequent check-ins prevent drift and keep everyone excited about continuous improvement.

7. Operational practices and supplier engagement – Require proactive planning and regular purchase cycle reviews. The supplier should participate in joint improvement sessions, share root-cause analyses, and implement fixes organically rather than as one-off actions. Communicate changes early to avoid surprises for retailers and consumers alike, and document every request in a central log.

8. Questions to validate during onboarding – Are data feeds complete and timely? Do we have a clear exemption process? How will we measure deficit remediation and credits? Can we meet the go-live date and still maintain low defect rates? What happens if a key node in the chain underperforms? Asking these questions upfront helps avoid gaps and supports a clean transition for the supplier and the 3PL team.

Thanks for reviewing these steps. If you want to align with Walmart OTIF expectations, start with a tight SLAs framework, draft precise penalties and remedies, and lock in a realistic onboarding timeline. Don’t hesitate to reach out to key stakeholders–consumers rely on reliable delivery, and a clear contract helps everyone stay aligned. Here, that means you, the supplier, and the 3PL working together to deliver on time, every time.