The supply chain story of early 2024 may seem strange to anyone without a TikTok account. Videos abound of the young and not-so-young racing inside Target stores to try and get their hands on Stanley drinking cups.
Even NPR has taken notice, reporting that “one man went so far as to jump the counter to steal a box of the pink glossy cups. And late last year, the limited-edition pink and cherry red tumblers caused mayhem at Target.”
Until the craze wanes, Target must figure out a way for its supply to meet demand. A pallet here and a pallet there won’t do. Target needs its deliveries of Stanley cups on time and in full.
What is OTIF?
Target’s biggest competitor, Walmart, is credited with coining the phrase on time and in full and its acronym, OTIF.
The Arkansas-headquartered megaretailer launched its OTIF initiative in 2017, according to 8th & Walton, a consultancy made up of retail industry experts with a combined 200-plus years of experience with the company or its suppliers.
The end goal of the OTIF initiative is simple, 8th & Walton said. “Ensure the item is in-stock at any time the customer wants it.”
To encourage suppliers to get that merchandise to store shelves, Walmart came up with an OTIF scorecard.
“OTIF puts the supply chain under the microscope and shows where improvement is needed,” 8th & Walton said. “A better supply chain leads to more sales and a better OTIF score. Flaws in the supply chain come back to Walmart suppliers as monetary penalties.”
How to Improve OTIF Performance
As with millions of products, the Stanley product line of drinking cups reportedly is manufactured in China, adding to the potential complications in the supply chain getting the tumblers to U.S. store shelves.
To improve OTIF scores, Walmart advises shippers to use third-party consolidators.
“Small and mid-sized suppliers can get crushed trying to keep up with OTIF penalties each month. Turning supply chain tasks over to a third-party logistics and consolidating firm can save your business time and payroll dollars,” 8th & Walton said.
Retailer and distributor compliance is just part of what shippers gain when partnering with Continental Logistics.
Partner with a Top OTIF Performer
For those products like Stanley cups that come from China, Continental Logistics provides import and export container drayage service across the United States from the ports of New York/New Jersey; Philadelphia; Baltimore; Norfolk, Virginia; Charleston, South Carolina; Savannah, Georgia; Miami, Port Canaveral, and Jacksonville, Florida; Houston; and Los Angeles, Long Beach, and Oakland, California.
Regardless of container size, temperature requirements, or weight, Continental Logistics can ensure cargo is picked up and delivered on time and in full by established, reputable providers to the correct inland locations.
To provide a seamless one-stop shop, Continental Logistics provides cross-dock services and warehousing for customers in a wide variety of industries, including food and beverage, consumer packaged goods, personal care products, raw materials and ingredients, and hard goods. Providing that one-stop shop helps ensure OTIF deliveries.
Continental Logistics expertly handles both full truckload and less-than-truckload shipments by taking care of the legwork of sourcing carriers, scrutinizing retailer routing guidelines, and scheduling and tracking freight. Its vast network of carriers ensures Continental Logistics has nationwide coverage for customers’ shipments at all times.
Continental Logistics has solutions for vital temperature-controlled shipments. The company’s veteran team understands the intricacies of temperature-controlled transportation and knows fluctuations in temperature can affect the quality of food products — or create health hazards for the end consumer. Continental Logistics specializes in frozen, refrigerated, and air-conditioned transportation so shippers can be assured their products will be delivered on time and in full at the proper temperature.
Intermodal transportation involves multiple modes, usually with part of the trip conducted by rail. By connecting drayage, full truckload, and rail, Continental Logistics can provide solutions that can be the most economical and efficient method for transporting freight – and ensuring OTIF deliveries.
One of Continental Logistics’ top OTIF strategies is achieved through its Direct Store Delivery (DSD) service, which allows customers to ship directly to a store or distribution center and avoid costly delays for fast-moving products (like Stanley cups).
DSD allows for shippers to have more control and timing over their deliveries, but it also creates more complexities because each store has different shipping requirements and accessibility. Continental Logistics uses a hands-on approach, handling the nitty-gritty details to make sure products reach store shelves before consumers.
A Complete OTIF Partner
Continental Logistics’ decades of experience, speed of service, and focus on compliance and OTIF have provided the groundwork for its skilled team to handle any challenge in any market.
The decades of experience go back to 1954 when Continental’s parent company, Port Jersey Logistics, was founded. The company expanded into public warehousing in 1967 and then founded Continental Logistics in 1983 to provide transportation solutions for shipments to destinations outside the Northeast. To give customers a warehousing option, Port Jersey Logistics in 1984 launched Tyler Distribution, which today operates 1 million square feet of warehousing space throughout central New Jersey.
Continental Logistics employs a variety of tools to help set clients on the path to OTIF. One of them is its automated freight class calculator. Knowing the freight class helps accurately determine shipping costs and avoid unexpected charges or delays. It also enables Continental Logistics to efficiently allocate space based on the type and volume of the goods being shipped – and ensure those goods will arrive on time and in full.
Give the freight class calculator a try, or reach out to Continental Logistics for solutions to any transportation troubles.
