First implemented in 2017, Walmart’s “on-time, in-full” (OTIF) policy has kept carriers hopping, and a recent memo from the Arkansas-based company just upped the ante for those who wish to supply the shelves of the retail giant.
Effective Sept. 15, carriers must deliver orders “in full” and “on-time” 98% of the time or be fined 3% of the cost of the goods. Released on Sept. 1, the memo only gave suppliers two weeks to prepare.
Walmart began its OTIF policy at 85% and has slowly raised that number over the last three years. At the time, Walmart spokesperson Michelle Malashock said, “On-time and in-full deliveries help us keep the right amount of inventory at the store at the right time. Before we instituted this program, merchandise shipped outside of the window caused us to keep a surplus inventory in our back rooms.”
The OTIF policy requires all general merchandise orders to be filled exactly as Walmart prescribes. Prior to this announcement, OTIF compliance on food and consumables has lagged below Walmart’s requirements.
The new standard will also apply to the time-in-transit. Right now, Walmart sets an 87% on-time threshold for prepaid business if the supplier sets the delivery terms and pays freight charges.
In 2017, when they implemented the program, Walmart claimed it was losing money in sales because the restocking of shelves was not occurring fast enough. In a recent internal memo, Walmart said, “We must improve product availability to help ensure that our customers can purchase the products they want when they want, in-store or online. To deliver on this goal, orders need to be fulfilled accurately, on-time, and in-full.”
Walmart anticipates that as the current health crisis lingers and shoppers are unable to go to brick and mortar stores, the 2020 holiday season will be unlike any other for e-commerce sales so that stocked warehouse shelves will be an important component of the retailer’s success.
While the new policy is quite ambitious, Walmart sees it as essential to remain competitive with Amazon, which has been aggressively marketing its online grocery store in recent months.
Through the Volvo LIGHTS project, leading freight company Dependable Highway Express will demonstrate the ability for battery-electric trucks to successfully transport goods in daily routes.
Leading freight operator, Dependable Highway Express (DHE), has received two Volvo VNR Electric trucks, the first battery-electric Class 8 trucks to join DHE’s fleet. The electric trucks will be added to DHE’s existing fleet of more than 500 Volvo trucks operating across North America. Deployed as part of the Volvo LIGHTS (Low Impact Green Heavy Transport Solutions) project, the Volvo VNR Electric trucks will operate in a pilot project through the end of 2021 to demonstrate the ability for battery-electric trucks to successfully transport goods in DHE’s daily routes.
DHE will begin operating the two Volvo VNR Electric trucks out of its facility in Ontario, California, which manages a fleet of 40 Class 8 trucks. The Volvo VNR Electric trucks will run daily routes varying between 60 to 80 miles, transporting goods from Ontario to warehouses throughout Southern California. By completing several different routes, the trucks will collect performance data under various operating conditions, producing crucial real-world operational data on the trucks’ power, performance, and range. This information will help Volvo Trucks validate customization measures to provide the most seamless transition to battery-electric trucks for its customers.
In addition to zero tailpipe emissions, the Volvo VNR Electric trucks simplify maintenance and improve working conditions for drivers by offering state-of-the-art responsiveness, a quieter cab free of engine-related vibrations, and by eliminating exposure to diesel fuel and exhaust.
“DHE is incredibly proud to be one of the first fleets to deploy Volvo VNR Electric trucks in North America,” said Joe Finney, chief operating officer, Dependable Highway Express. “DHE is a family-run business that considers our employees like family, which is why we want only the best for our drivers. Volvo’s entire line-up of Class 8 trucks offer our drivers the safest and most comfortable environment on the market, which is why we’ve only purchased Volvo trucks for our fleet since 2014. The Volvo VNR Electric truck cabin is nearly identical to its diesel counterpart, but with a whisper-quiet engine, a super smooth ride, and zero emissions. Our drivers can’t wait to get behind the wheel of the VNR Electric trucks and put them to work.”
Dependable Highway Express (DHE) is a core division of Dependable Supply Chain Services, a full-service logistics provider established in 1950. DHE’s services include trucking, warehousing and distribution, harbor drayage, third-party logistics, air, and ocean freight forwarding, and freight transport.
“Working with DHE as a trusted fleet partner for years, they’ve come to expect the reliability, performance, and safety that is synonymous with a Volvo truck. We look forward to DHE putting these VNR Electric truck models through the rigors of their daily operations and experiencing that same level of quality,” said Peter Voorhoeve, president of Volvo Trucks North America. “These zero-emission trucks will start delivering benefits to drivers and communities today while providing us with the valuable real-world data we need to successfully introduce these trucks commercially in the very near future, a milestone in the transition to wide-scale, sustainable transport solutions.”
The Volvo VNR Electric trucks were deployed as part of the Volvo LIGHTS project—an innovative collaboration with the South Coast Air Quality Management District (South Coast AQMD) and 13 other organizations to develop a blueprint to successfully introduce battery-electric trucks and equipment into the market at scale.
“The Volvo LIGHTS project is figuratively paving the road toward achieving meaningful emission reductions in the freight movement sector—the largest single source of air pollution in our region,” said Janice Rutherford, San Bernardino County, second district supervisor and South Coast AQMD board member. “I am pleased to see these zero-emission Volvo VNR Electric trucks driving through my district in San Bernardino County and look forward to larger-scale deployments.”
In June, the first Volvo LIGHTS VNR Electric truck was deployed at Volvo Trucks North America TEC Equipment dealership in Fontana, California, which will provide DHE with ongoing maintenance support for the Volvo VNR Electric trucks. On the near-term horizon, additional announcements about fleet customer demonstrations will be made.
“By operating our own all-electric VNR for the past four months, our maintenance and repair crew has already gained incredible hands-on experience,” said Mike Reardon, general manager of TEC Equipment’s Fontana dealership. “We’re thrilled to extend our contracted maintenance services with DHE to include their two Volvo VNR Electric trucks and look forward to helping their team maximize their uptime.”
The Volvo VNR Electric model was recently certified by both the U.S. Environmental Protection Agency (EPA) and California Air Resources Board (CARB) enabling the vehicle to be commercially sold in all 50 U.S. states. This step helps Volvo Trucks move one step closer to the highly anticipated commercial launch of the VNR Electric. Beginning in 2021, Southern California businesses will have the opportunity to lease commercial Volvo VNR Electric trucks from TEC Equipment to gain firsthand experience with these advanced trucks in their fleet operations.
Volvo LIGHTS is part of California Climate Investments, a statewide initiative that puts billions of Cap-and-Trade dollars to work reducing greenhouse gas emissions, strengthening the economy, and improving public health and the environment—particularly in disadvantaged communities.
Volvo Trucks North America, a leader in connectivity, has entered into a Memorandum of Understanding (MOU) with Samsara, a leader in industrial Internet of Things (IoT).
To continue offering further options in integrated connectivity solutions for fleets and drivers, Volvo Trucks has entered an agreement with Samsara to investigate providing an all-encompassing, single-source telematics service including compliance services, cameras, trailer sensors, safety, maintenance services and more available via Samsara’s platform.
“We look forward to working with Samsara and their unique data systems,” said Conal Deedy, director of customer productivity solutions, Volvo Trucks North America. “This opportunity allows us to explore how our customers can leverage Samsara’s integrated solutions for more efficient fleet management.”
“Volvo Trucks is at the forefront of connectivity, and we’re always looking to bring solutions to the market that help increase operational efficiency, safety and sustainability for our customers,” added Ashley Murickan, product marketing manager, Volvo Trucks North America.
Samsara’s portfolio of complete IoT solutions combine hardware, software, and cloud to bring real-time visibility, analytics, and AI to operations. The company serves over 15,000 customers across diverse sizes and industries, including transportation and logistics, field services, energy, construction and other sectors.
“We’re thrilled to be partnering with Volvo Trucks, particularly given our shared belief that driver safety and overall experience is of the utmost importance,” said Chris Mozzocchi, director, OEM integrations at Samsara. “Today marks the beginning of a partnership that will eventually span numerous products and services so customers can run safer and more efficient fleets.”
WASHINGTON – The U.S. Department of Transportation’s Federal Motor Carrier Safety Administration (FMCSA) today announced that it is proposing and seeking public comments on a new pilot program to allow drivers aged 18, 19, and 20 to operate commercial motor vehicles (CMVs) in interstate commerce.
“This action will allow the Agency to carefully examine the safety, feasibility, and possible economic benefits of allowing 18 to 20-year-old drivers to operate in interstate commerce. Safety is always FMCSA’s top priority, so we encourage drivers, motor carriers, and interested citizens to review this proposed new pilot program and share their thoughts and opinions,” said FMCSA Deputy Administrator Wiley Deck.
FMCSA’s Federal Register notice requests comments on a new pilot program that would allow younger drivers to operate in interstate commerce. The Agency proposes a pilot program to allow drivers to participate if they fall within two categories: 1) 18 to 20-year-old commercial driver’s license (CDL) holders who operate CMVs in interstate commerce while taking part in a 120-hour probationary period and a subsequent 280-hour probationary period under an apprenticeship program established by an employer, or 2) 19 and 20-year-old commercial drivers who have operated CMVs in intrastate commerce for a minimum of one year and 25,000 miles. The study group drivers would not be allowed to operate vehicles hauling passengers or hazardous materials or special configuration vehicles.
Currently, 49 states and the District of Columbia already allow 18 to 20-year-old CDL holders to operate CMVs in intrastate commerce—meaning under-21 drivers may currently drive within state borders, such as from Houston to El Paso or from Miami to Tallahassee.
In July 2018, FMCSA announced the details of a Military Commercial Driver Pilot Program, which allows certain 18 to 20-year-olds with military training to operate CMVs in interstate commerce.