New Walmart Mandate Makes Real-Time Tracking A Must-Have

Dagny Dukach
Dagny Dukach

On the heels of Amazon's acquisition of Whole Foods Market and ever-mounting e-tailer competition, retail giant Walmart just announced it will be implementing strict penalties for suppliers who fail to meet rigorous delivery standards.  Starting August 1st, suppliers must achieve 75% On-Time In-Full (OTIF) deliveries or be subject to fines up to 3% of the shipment's value. By next February, Walmart will insist on 95% compliance

What This Means For Suppliers

In the past, shippers have relied on passive data collection systems and delivery updates from the carriers that ship their goods. But that's not going to cut it for OTIF. When Walmart starts levying fines for late or early delivery, shippers are going to want more information on what's really going on with their shipments. And as we've discussed in the past, truck-tracking systems don't address this problem well for shippers.

This new requirement is going to make sensor-driven supply chain visibility critical. Without visibility into their shipments, suppliers won't be able to reliably detect problems and address root causes. They'll be stuck in a game of "whack a mole" trying to expedite shipments and yelling at their carriers, never sure where the problem really is or how to fix it.

Bottom line: If you're a Walmart supplier, you'll need to up your game to ensure your supply chain is capable of delivering your product exactly when scheduled, without damaged or missing goods. 

The Tive Solution

In the wake of Walmart's announcement, suppliers are scrambling to set up systems for compliance. One to consider: Tive. Tive offers a simple hardware plus software solution to help you take the surprises out of your supply chain. Our multi-sensor cellular-connected trackers and cloud-based software platform enable you to know where your goods are, and whether they've been damaged, in real-time. Implement Tive and you'll have the insight you need to comply with OTIF, keep Walmart happy, and avoid fines.

Topics: Supply Chain Visibility

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