Home » PSApedia
Delivery In Full On Time Rate
Enhance Business Efficiency with our Delivery in Full On Time Rate Analysis.
What is Delivery In Full On Time Rate (DIFOT)?
Delivery In Full On Time Rate, commonly abbreviated as DIFOT, is a performance metric used to evaluate the efficiency and effectiveness of a company’s delivery process. It measures the percentage of orders delivered on time and in full, without any shortages or errors.
DIFOT is an important metric for PSA because it measures the ability of a professional services organization to meet its commitments to its clients. It also helps to identify areas where improvement is needed, such as project estimation, scheduling, and resource management.
Why is DIFOT Important?
DIFOT is a crucial metric for businesses as it directly impacts customer satisfaction. When orders are delivered as promised, it builds trust and loyalty among customers. Consistently high DIFOT rates indicate:
- Efficient supply chain and logistics processes.
- Effective inventory management.
- Strong vendor relationships.
- Positive customer experience leading to repeat business and referrals.
Why is DIFOT Important?
Calculating DIFOT
DIFOT = Number of orders delivered on time and in full / Total number of orders delivered × 100
Example:
Let’s say a company had 100 orders in a month. Out of these, 95 were delivered on time and in full. Using the formula:
DIFOT=95100×100=95
This means the company achieved a DIFOT rate of 95% for that month.
DIFOT vs Other Related Metrics
It’s essential to understand the nuances of each metric to ensure you’re measuring the right aspects of your delivery and fulfillment processes.
| Metric | Description | Application |
|---|---|---|
| DIFOT (Delivery in Full, On Time) | Measures the percentage of projects or services delivered on time and in their entirety. | Professional Service Automation (PSA) |
| OTD (On-Time Delivery) | Focuses solely on the percentage of projects or services delivered on time, without considering completeness. | Various industries, including manufacturing and logistics |
| FOTD (Full, On-Time Delivery) | Emphasizes both on-time delivery and completeness of the deliverables. It combines aspects of DIFOT and OTD. | Professional Service Automation (PSA) |
How DIFOT is Used in Business?
DIFOT is not just a number; it’s a reflection of a company’s operational efficiency. Businesses use DIFOT to:
1. Benchmark Performance: Compare against industry standards or past performance.
2. Identify Bottlenecks: Find out where delays or errors are occurring.
3. Improve Supplier Negotiations: High DIFOT rates can be a bargaining chip during vendor negotiations.
4. Enhance Customer Service: Address issues proactively before they escalate.
Ready to Optimize Your DIFOT?
KEBS, a leading Professional Service Automation (PSA) software, can play a pivotal role in improving your DIFOT rates. With tools like Gantt charts, businesses can plan and track deliveries more effectively.
KEBS resource management software ensures that the right resources are available at the right time. Get insights into delivery performance and areas of improvement. From order to cash, automate processes to reduce errors and delays.
KEBS finance management software can help in forecasting and inventory management, ensuring timely procurement and delivery.
KEBS Resource Management
Ready to optimize your DIFOT with KEBS? Contact us today or get a firsthand experience with a demo.
