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Delivery in full, on time (DIFOT) rate

How should delivery in full, on time (difot) rate be measured and interpreted?

AccessibleOperationalTeam2 min read
Contents

Helps managers answer: To what extent are our customers getting what they want at the time they want it?

Delivery reliability matters to consumers and businesses alike. Customers expect the right order at the promised time; manufacturers using just-in-time supply and retailers protecting shelf availability can suffer immediate operational losses when either quantity or timing fails. DIFOT tests both conditions together.

When to use it

  • Answer the key performance question: “To what extent are our customers getting what they want at the time they want it?”
  • Assess this KPI within the Operational processes and supply chain perspective.
  • Plan data collection, formula use, reporting frequency, and data-source requirements for this KPI.
  • Compare results against the targets, benchmarks, examples, or trend guidance available for this KPI.

Origins

DIFOT developed through logistics and supply-chain service measurement rather than from one inventor. As distribution management matured in the late twentieth century, organisations combined two customer-critical conditions—complete quantity and promised timing—so that a partial or late shipment could not be reported as successful. OTIF and perfect-order measures are related variants. The promise date, unit of measurement and treatment of split or substituted orders must always be defined.

What it is

Perspective: Operational processes and supply chain perspective.

Key performance question: To what extent are our customers getting what they want at the time they want it?

DIFOT shows whether the organisation fulfils the complete order by the customer-agreed deadline. A weak rate can expose inventory shortages, production bottlenecks, inaccurate promises, picking errors or poor carrier performance.

Measure arrival at the customer, not merely dispatch from the warehouse. An order can leave the supplier on schedule and still fail in the last mile. From the customer’s perspective, only complete and timely receipt counts as success.

How to use it

Measurement

Classify each defined order, shipment or unit as successful only when it is both complete and on time. Divide successful deliveries by all eligible deliveries in the period.

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