keen to point to the changing conversation of supply chain and looks at a major consumer goods company like Wal-Mart and the introduction of its On Time in Full ( OTIF ) standard which has been applied to all of its suppliers . This new list of vendor guidelines and scorecard parameters is designed to keep its suppliers in check in order to ensure the company has the right products it has when it needs them , reduce overstocked inventory and most importantly , improve the response to short orders . If a supplier fails to meet these standards , then there are cost penalties as a consequence . Landry says that this has had a ripple effect on the industry , with a large number of companies now looking to replicate this standard to their own suppliers . “ More and more retailers are now introducing their own version of these standards and penalties to their own suppliers ,” he says . “ It ’ s a sign that as one company in the industry or as the ecosystem gets better , the expectation of others increases .”
“ No one company can improve on its own and this spreads across the industry as a whole where weak links
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