It’s easy to see how quickly fines can accumulate. It is important for shippers to be aware that they are not subject to both On Time and In Full fines on the same shipment. OTIF Best Practices It is suggested that you adopt the following best practices to ensure that your shipments are on time and in full: • Educate your employees. Talk to your production and shipping personnel and make sure they are aware of the Walmart OTIF requirements and the need to adhere to shipping dates. • Talk to your carriers. Make sure that your carriers understand the OTIF performance rules, the importance of being on schedule and the need to promptly advise you of any in-transit or delivery issues. Build strong carrier relationships and provide them consistent business— preferably to the same Walmart distribution centers. • Have set shipping dates. Schedule pick up dates and times with your carriers to ensure as little variance in transportation performance as possible. • Review your OTIF scorecard weekly. Identify and correct deficiencies in your internal processes. • Proactively address anticipated problems. Any product or shipping issues should be immediately communicated with the Walmart buyer(s) and replenishment managers. • Pay attention to rescheduled delivery dates. If you reschedule
a delivery, make sure the new date and time still fall within your “Must Arrive By Date” (MABD). • Be aware of consolidated freight. Be sure to communicate clear expectations to carriers if your Walmart orders are being consolidated with other freight. • Don’t arbitrarily fine carriers. You don’t like to be fined by Walmart and your carriers won’t like to be fined by you without a good reason. The current and anticipated transportation market is a seller’s market and carriers will be able to choose who they will do business with. Undesirable customers will have loads declined or receive rate quotes that incorporate anticipated fines. • Keep full and detailed records of your Walmart transactions. Good documentation is key to reducing or eliminating fines. While it is probable that every Walmart vendor claims that their business has characteristics that should provide for relaxation or elimination of the OTIF policy, a strong case can be made that fresh produce should not be subject to the same standards as manufactured products. The Walmart OTIF policy is the subject of extensive evaluation by Western Growers staff to determine the next action steps and ensure fair trade practices are enforced in the industry. Shippers of fresh produce doing business with Walmart are encouraged to confidentially share their OTIF experience by contacting Bryan Nickerson at 949.885.2392 or bnickerson@wga.com.
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