DIFOT: Why it matters and how you can improve

Delivery In Full, On Time (DIFOT), also known as, On Time and In Full (OTIF) Delivery.

DIFOT or OTIF is used in Logistics operations as one of the main key performance indicators (KPI) that will be measured continuously to determine the performance of any enterprise.

This element of any business operations is often disregarded, but it’s key to ensuring the Supply Chain of your enterprise runs efficiently.

This concept measures the percentage of your demand deliveries which is delivered in full (i.e.. several orders, lines, or units delivered in full as a percentage of what was ordered).

Let's understand further what we mean to deliver in full and on time.

Delivery in full means that all items in the order have been delivered and accepted by the customer.

In other words, the quantity ordered matches the quantity delivered.

Whereas, delivery on time means that the actual time of the rider's or driver's arrival at the customer's address corresponds to the estimated time of arrival.

Calculation of DIFOT for SMEs

Let's first measure delivery in full

Delivery in full is a direct metric to calculate.

For any delivery service, your SME should be guided by the following indicators that go with software or a customizable mobile app as Proof of Delivery;

•Delivered - all items in the order have been delivered by the driver or rider.

•Not delivered - the delivery was unsuccessful (due to order issues or site issues like wrong address, canceled order, customer not at home, etc)

•Partially delivered - some items in the order have been delivered while some have been rejected (due to packaging issues like wrong size, wrong labeling, etc)

The next calculation is delivery on time

Delivery on time is a little more personal as it's defined by the logistics officer or managing director of the enterprise.

It measures the time difference that's allowable between the riders' or drivers' estimated time of arrival and the actual time of arrival

As SME, it is up to you to decide your set time windows for your operation. In this case, you can allow a 10-30 min gap between your riders' or drivers' planned and actual time of arrival for the delivery to be considered on time.

You can select the window up to 60 minutes and the delivery will still be considered on time if your category of delivery services is not time-sensitive (suitable contactless delivery when the rider or driver doesn't need the customer's presence and e-signature and can deliver the package at the specified address)

Monitoring of DIFOT for your SME

You need a reliable analytics tool to keep track of delivery in full and on time, particularly when you have a high figure of orders on daily basis.

Ways of improving DIFOT for your SME

Load planning

This forms a critical part of optimizing your route. It guides your enterprise to efficiently utilize your fleet resources in line with all requirements and restrictions to prevent damaging goods and reduce returns (eg temperature control of vehicles transporting goods)

Strategy: Adopt a route optimization software or you can assign load planning to Artificial intelligence and apply your resources to the best to ensure no commodity gets damaged and rejected by your customer.

Load check

This component is the scanning of QR and barcodes on shipping or fleeting labels to make sure the right packages are heading to the right customers to reduce the rate of partial deliveries and unsuccessful, and increase your rate of delivery in full.

Strategy: Use innovative software that offers a QR and barcode scanner as part of its mobile app for the rider or driver available for Android and iOS.

You can also do a mandatory load check before each route and even demand a need for signature to verify a completed load check.

Navigation

This feature considers the driver's or rider's ability to follow the shortest, safest route to deliver to customers' addresses within the route.

Strategy: Adopt software that offers all the best GPS apps for riders or drivers that can switch between different navigation systems and apply the one that works best in each area, making sure they arrive at the customer's address on time.

Contactless delivery

This is an innovative strategy that businesses can adopt to achieve a win-win with their customers as part of augmenting their DIFOT.

It guarantees customers the flexibility to not be present at home when their order is delivered or not be in physical contact with the driver or rider.

Strategy: Use a two-way verification software that allows your drivers or riders to take a photo of the delivered package with the option of a wider time window for delivery on time. A generated Proof of Delivery PDF can instantly be shared with the customer.


In conclusion, it's key for SMEs to utilize the right workflows and tools available to measure, monitor, and improve their DIFOT or OTIF metrics continuously to provide a good delivery service.