Plus: The US Chamber of Commerce challenges the FTC ruling on banning non-competes, Covenant Logistics' profits plummet, and Tesla postpones Semi production until late 2025.
Walmart's recent update brings a lighter load for suppliers, dialing down the 'on-time, in-full' (OTIF) shipment requirements to 90% and 95%, respectively, from the steep 98% set during the 2020 demand surge. Here's the lowdown:
Previously: In 2020, amid pandemic chaos, Walmart cranked up OTIF targets to 98% to beef up against its competitor Amazon.
Now: They've relaxed OTIF standards to 90% on time, 95% in full.
Why: To better manage inventory and streamline online order fulfillment.
Stakes: Vendors missing the mark face fines—3% of the goods' cost.
Larger Context: The pandemic saw packaged goods companies' on-time, in-full deliveries drop from 85% (Q1 2020) to 77% (Q4 2020). In 2023, deliveries improved, hitting an 84% on-time average, according to FourKites data.
Experts and logistics providers see Walmart easing up as a positive shift, acknowledging the unpredictable nature of deliveries. Several factors can derail the best-laid plans, from traffic delays and truck breakdowns to product mix-ups.
Walmart's adjustment reflects a return to more normal operations post-pandemic and aims to ease the pressure on suppliers. This move is seen as a win-win, enhancing flexibility and efficiency for both Walmart and its suppliers.
Hi! I'm Adriana and I've been working for FreightCaviar as Head Writer for a little over a year now. Some of my favorite topics to cover are FreightTech, Green Freight, and nearshoring/reshoring.
The US labor market is showing signs of stabilization as the rate of voluntary job quitting approaches pre-pandemic levels and employers implement better retention strategies.
