Introduction
Walmart has set a new benchmark for supplier performance: a 98% on-time, in-full (OTIF) shipment requirement. For manufacturers and suppliers whose products move through Walmart and Sam’s Club, this is a clear operational expectation that directly affects account viability, replenishment, and retailer relationships. The change is not just a compliance detail — it drives how you plan inventory, execute logistics, and prioritize account management.
What happened
Walmart has communicated to all suppliers that they must meet a 98% OTIF shipment standard. This requirement applies across the supplier base and sets a high threshold for delivery accuracy and timeliness. Suppliers who fail to satisfy this requirement risk consequences that can affect their ability to do business with Walmart and Sam’s Club.
Why this matters to manufacturers and suppliers
The 98% OTIF mandate matters because Walmart and Sam’s Club rely on predictable, consistent replenishment to maintain shelf availability, reduce stockouts, and support customer loyalty. For suppliers, missing the target can lead to financial penalties, reduced shelf presence, or diminished promotional opportunities. More broadly, meeting the standard is integral to retaining strong commercial relationships and negotiating future business with these retailers.
Key implications include:
- Revenue risk — Repeated failures to meet OTIF expectations can jeopardize current purchase volumes and future listings.
- Operational scrutiny — Retailers will focus on partners with inconsistent performance, placing more audits and corrective actions on those suppliers.
- Priority in replenishment plans — Suppliers who consistently hit the standard will be more competitive for in-season and promotional placements.
Practical business considerations and next steps
Manufacturers should treat the 98% OTIF requirement as a strategic priority and take a structured approach to close any performance gaps. Consider the following actions:
- Audit current OTIF performance: Establish baseline metrics for your Walmart and Sam’s Club shipments. Identify patterns by SKU, DC, carrier, and fulfillment channel to find the largest contributors to missed targets.
- Strengthen demand and supply planning: Improve forecasting and safety stock policies for Walmart-specific SKUs. Align production schedules and raw-material procurement to the retailer’s cadence and promotional calendar.
- Optimize logistics and carrier performance: Review carrier contracts, routing guides, and loading procedures. Ensure carriers understand Walmart/Sam’s Club appointment windows, labeling, and ASN requirements to minimize chargebacks and delays.
- Standardize packing and documentation: Errors in carton packing, labeling, or ASN transmission are common causes of in-full failures. Standard operating procedures, training, and quality checks at packing and loading points reduce these errors.
- Focus on priority SKUs: If resource constraints prevent company-wide improvements immediately, target the SKUs that matter most by sales volume or margin with Walmart. Fixing performance on a small set of high-impact items can protect revenue while broader improvements are implemented.
- Use data to drive corrective actions: Track exceptions, root causes, and the impact of corrective measures. Create a dashboard that shows OTIF trends and ties performance to specific operational levers.
- Engage retailer account teams proactively: Communicate improvement plans and timelines with Walmart or Sam’s Club buyers and replenishment leads. Collaborative problem solving can prevent punitive measures and preserve promotional opportunities.
Operational pitfalls to avoid
- Assuming one-size-fits-all solutions—different DCs, carriers, and product categories often require tailored fixes.
- Relying solely on last-minute expedites—frequent rush shipments can mask underlying planning issues and increase costs.
- Failing to document corrective actions—without records, it’s harder to show progress or negotiate with the retailer when problems arise.
Prime Perspective
Meeting a 98% OTIF standard requires disciplined planning, tight operational controls, and clear retailer communication. Strategic planning identifies priority SKUs and capacity needs; retail expertise aligns those plans with Walmart and Sam’s Club expectations; and strong execution — from packing accuracy to carrier performance — turns strategy into measurable results. Manufacturers that act now position themselves to protect revenue and strengthen their Walmart partnerships.