All major retailers enforce supplier performance standards, and Walmart uses On Time In Full (OTIF) as a key performance indicator. Non-compliance results in costly accounts receivable fines - equal to 3% of the cost of goods sold (COGS) for non-compliant cases.
What Is On Time In Full (OTIF)?
OTIF stands for "On Time In Full," a standard metric used by most major retailers. Similar metrics exist across the industry:
- Target uses On Time Fill Rate (OTFR) tracked in Partners Online
- Kroger uses ORAD (Original Requested Arrival Date)
- Costco focuses on Advance Ship Notice accuracy
- Walgreens deducts for late deliveries or fill rate misses
OTIF Metrics and Calculations
Walmart's OTIF calculation: OTIF% = number of cases on time or in full ÷ total number of cases ordered
Three components comprise the metric:
On Time (Prepaid)
The metric is 90% across all shipping options. Delivery windows vary by merchandise alignment - food has the Must Arrive By Date (MABD) only, while general merchandise allows the MABD plus one day before. The breakdown includes:
- Prepaid Early Delivery
- Prepaid Late Delivery
- Prepaid Unscheduled Appointment
On Time (Collect)
The 98% metric applies to Collect suppliers. Key responsibility areas include ensuring shipments are available for pickup and submitting Request for Routing (RFR) forms before 4:00 p.m. CDT the day after receiving the order.
In Full
The 95% metric measures received cases divided by ordered cases, calculated separately for each merchandise alignment: Food, Consumables, Health & Wellness, Apparel, Home, Hardlines, Entertainment/Toys, and Seasonal. System-generated orders must match original PO quantities; manual orders must match adjusted quantities.
Common Errors and Pitfalls
- Misinterpreting MABD requirements between perishables and general merchandise
- Late RFR submission for Collect shipments
- Partial shipments instead of proper PO cancellations
Tips to Stay Compliant
- Partner with experienced 3PLs familiar with Walmart's routing requirements
- Review your OTIF scorecard in Retail Link weekly
- Validate ASN accuracy reports before shipment
- Set internal alerts for MABD deadlines by merchandise alignment
- Audit your logistics partners regularly for on-time performance
Staying on Top of OTIF
Regular monitoring through Retail Link, clear standard operating procedures, accountable logistics partners, and consistent audits help prevent fines. Prevention remains the most effective approach - but when invalid OTIF fines do appear, they are disputable through Walmart's Accounts Payable Dispute Portal (APDP) in Retail Link.
About Vendormint
Vendormint monitors OTIF compliance for suppliers across Walmart, Target, Kroger, and 50+ other retailers - identifying invalid deductions, managing disputes, and providing recommendations to reduce future penalties before they hit your accounts receivable.