Since 2008, Mulder Brothers Brokerage has leveraged strategic relationships to deliver turnkey transportation and logistics solutions for our clients. Our team is experienced in refrigerated and frozen less-than-truckload (LTL) shipments, multi-vendor consolidation, redelivery, cross-docking, and warehousing. We also provide support for the Walmart Consolidation Program as an approved partner, transporting products between the company’s 47 regional distribution centers for frozen goods to ensure they arrive safely and on time.
As a key supplier of Walmart consolidation services, Mulder Brothers maintains high MABD and OTIF scores. Read on to learn about MABD and OTIF, their unique requirements, and how Mulder Brothers can help.
What Is MABD?
Large retailers are part of a highly competitive market. Stores like Walmart depend on reliable shipments and quality products to retain customers, expand their consumer base, and replenish inventory on the shelves. It’s essential that their deliveries are accurate and on time. A Must-Arrive-By Date, or MABD, is a window of time during which a delivery is expected to be completed. If suppliers fail to meet the set MABD, they’ll potentially have to pay a large fee or chargeback on the goods. Mulder Brothers maintains high MABD success scores to remain in compliance with Walmart’s requirements.
MABD Window Explained
The MABD window is typically a 48- or 72-hour period during which a delivery is expected at a distribution center. Suppliers that complete shipments during the MABD window receive high MABD scores. Multiple factors can negatively impact your score, such as if a shipment arrives:
- After the MABD window
- Before the window
- Incomplete or inaccurate
- With poor product integrity (spoiled or damaged goods, etc.)
Any of the above situations are likely to result in a penalty as part of Walmart’s guidelines, often calculated as a percentage of the invoice value. Mulder Brothers’ attention to detail helps us meet expectations for accurate, on-time deliveries – our scores speak for themselves. Partnering with us will give you the peace of mind that product integrity will be maintained during all stages of the supply chain.
What Is OTIF?
OTIF, or On-Time In-Full, is a metric that Walmart established in 2017 for determining how often a supplier can meet agreed-upon delivery dates. Walmart can assess if your company is successfully making on-time deliveries of the exact products they ordered in the correct quantities or case numbers and to the right Walmart facilities. The goals behind the OTIF supply chain metric are not only to closely monitor suppliers’ abilities and performance but also to improve customer satisfaction and strive for continuous improvement in Walmart’s stores.
FTL and LTL Guideline Breakdown
In August 2017, Walmart began requiring full-truckload (FTL) suppliers to make deliveries 100% in full and within the MABD window for at least 75% of deliveries. Walmart raised the expected rate for delivering in the MABD window to a minimum of 95% in 2018.
Per Frock Freight’s annual shipper survey, however, just 55% of shipping companies achieved FTL shipping in 2022, so OTIF provides guidelines for LTL deliveries, as well. In 2017, suppliers for LTL shipments were required to make 100% in-full deliveries within the MABD window just 33% of the time. Over the past few years, this percentage requirement has continued to increase. Redwood reports that Walmart raised that percentage again in September 2020 to its current guideline of 98%.
Suppliers falling outside the acceptable OTIF standards are hit with fines to be short-paid monthly. These may include penalties equaling 3% of the case value or cost of goods sold (COGS) should anything be missing, or fees for early deliveries to prevent overstocking.
Differentiating Between MABD and OTIF
The transition from MABD to OTIF included several changes to the delivery requirements for suppliers. The three- and four-day MABD windows for perishables or general merchandise and consumables, respectively, were reduced to one- and two-day windows under OTIF. Not only does OTIF have tighter MABD windows, but it also emphasizes the “in-full” aspect of a delivery in particular. Suppliers working with Walmart must maintain OTIF compliance to avoid negatively impacting their scorecard and to remain in the program.
Where Can I Find a Freight Carrier That Can Meet Both MABD and OTIF Requirements?
MABD and OTIF standards benefit suppliers, retailers, and customers by enhancing shipment quality and streamlining deliveries for greater efficiency and customer satisfaction.
Mulder Brothers has a proven track record of meeting MABD and OTIF requirements, along with a background in trucking and a strategic network of carriers, to facilitate supply chain logistics for your company. We’ll work with you on load planning, route optimization, freight consolidation, chargeback auditing, and more, analyzing all components of your shipments to achieve the ideal solution for on-time, in-full deliveries.
To learn more about Walmart’s Consolidation Program and our capabilities, contact us today.