Delivery In Full, On-Time (DIFOT) Rate: Definition & Measurement

Instructor: Beth Hendricks

Beth holds a master's degree in integrated marketing communications, and has worked in journalism and marketing throughout her career.

Are you delivering in full and on time? There's one way to be sure, and that's with the DIFOT rate. In this lesson, you'll learn more about the DIFOT rate and how it measures supply chain efficiency.

Right On Time

Tammy loves to order online because she can find exactly what she wants and get it delivered right to her house. Another feature she appreciates is when a retailer provides an estimated period of delivery; then, she knows exactly when to expect the package to arrive at her house.

For businesses, specifying an estimated time of delivery also helps behind the scenes, giving companies an opportunity to track the efficiency of their supply chain processes. How? When orders are delivered in full and on time, that signifies supply chain efficiency. When orders fail to be delivered either on time or in full, that may demonstrate areas businesses need to focus on more.

Customers love to receive their orders on time and in full, and it can be tracked used a metric known as DIFOT.

What is DIFOT?

DIFOT, also known in the business world as Delivery In Full, On Time, is a key performance indicator that takes a look at product or service delivery from the customer's point of view. This measurement is expressed as a percentage and shows how often the customers gets what they ordered when they want to receive it.

Most businesses put more weight on this metric than others such as Shipped-On-Time (SOT) because rather than focusing on the business' goals or objectives, it focuses on the customer's. A good DIFOT score is indicative of success in a company's logistics and supply chain performance. Why? Because it shows that the product ordered by the customer made it to the prescribed place by the specified time.

You'll see this a lot when you place orders online. Many companies will provide shoppers an estimated time of delivery when a purchase is made. When customers receive that order within that specified period of time, that is considered a DIFOT success.

In order to qualify to be tracked for the DIFOT measurement, orders must have a specific delivery date and a way to follow up on when delivery was made.

As an equation, the DIFOT rate would look like this:

(Number of deliveries DIFOT / Total number of deliveries) x 100 = DIFOT percentage

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