Andrew Lynch, Co-Founder and President of Zipline Logistics, shares with Logistics Management how companies can overcome the challenges presented by Walmart’s new on-time delivery standards.
Effective February 2017, Walmart is going to require its suppliers (shippers) to meet a two-day shipping window instead of its previous four-day window, as well as up its required compliance rate from 90 percent to 95 percent.
Lynch explained that these updates for February are somewhat reactionary to evolving consumer trends. Walmart needs to be leaner and more exact about when goods are coming into their distribution centers. Putting stricter standards and penalties in place helps.
He further explains how Zipline Logistics is helping companies prepare for the change. Logistics consultants look at the entire picture – manufacturing, transit, customers, etc. – and consult on where there may be opportunities to consolidate orders with other retailers and other Walmart facilities.