DIFOT is a compliance measure for supply execution, not a legal conclusion. Retailers often use it to trigger deductions when a shipment looks short, late, or both.
The headline phrase is stable, but the measure underneath can vary: order-level versus line-level scoring, gate-in time versus dock time, and different rules for split deliveries or substitutions.
When a DIFOT penalty appears, the first job is to check the scorecard line against your own PO, ASN, POD, booked window, and timestamp trail. That is evidence work, not abstract KPI debate.
Where to go from the definition
A DIFOT penalty stands or falls on the delivery evidence behind it. Send one redacted remittance and Claims Desk will check each penalty line against the POD, the booking window, and the invoice. Evidence review only. Not legal advice.
Send one redacted remittance