BENTONVILLE, Ark. — Walmart suppliers have been told that on-time and in-full shipments must be 98% complete effective Sept. 15. Suppliers not meeting the new guidance will be fined 3% of the cost of goods. The guidance gives suppliers, who now meet a 70% completion rate, little time to adjust.
The Sept. 1 memo uploaded on Walmart’s supplier portal was authored by Scott McCall, chief merchandising officer for Walmart U.S., and Greg Smith, head of supply chain at the retail giant.
“As we continue to keep the customer at the center of everything we do, we must improve product availability to help ensure that our customer can purchase the products they want, when they want, in-store or online. To deliver on this goal, orders need to be fulfilled accurately, on time and in full. Over the last couple of years, improvements to the On Time and In Full (OTIF) program have driven increased visibility and accountability for Walmart and our Supplier partners,” the memo states.