Why winning at DIFOT is more than a routing problem

“A championship-winning team has the best-designed car, the best driver and the best race strategy. Remove any one of those elements and you won’t consistently win races,” said Jeeten Chauhan, Transport Lead for Oceania at HERE Technologies.

“The same applies to logistics—accurate location intelligence, intelligent planning and disciplined execution must work together to consistently achieve high DIFOT.”

That comparison sits at the heart of how Chauhan thinks about DIFOT, the supply chain metric that measures whether deliveries arrive in full and on time. It is the standard against which logistics providers across Oceania are increasingly judged, and the commercial stakes attached to it are growing.

Cutting it close

Across Australia and New Zealand, logistics providers are under constant pressure to deliver faster, meet tighter time windows and keep customers satisfied. Small issues, such as a late delivery or inaccurate address data, can add up quickly, eating into margins and damaging trust. Without reliable performance data, it becomes difficult to show what is working, identify where problems occur or have meaningful conversations with customers about service levels.

A 95% DIFOT score is often considered baseline competence in Australian supply chains. World-class performers push above 97%. That small percentage gap is commercially significant. It is where service reliability is proven, customer confidence is built and commercial relationships are often won or lost.

Where DIFOT breaks down

Chauhan is precise about where the roots of failure tend to hide. "Many businesses spend significant effort analyzing late deliveries after they have happened rather than preventing them through better planning and execution," he said. "If the address is wrong, the delivery window is unrealistic or the estimated time of arrival (ETA) is unreliable, the route can look like the problem when the underlying issue sits much earlier in the process."

Too often, businesses only investigate delivery problems after the fact. They look back at why an order was late or why a delivery failed, rather than using data and better planning to prevent those issues in the first place. That reactive approach can be far more costly than many teams realize.

Failed deliveries are especially painful because they create a ripple effect across the business. "A failed delivery is usually the most expensive because it often requires a second delivery attempt, additional customer service effort and an impact on customer satisfaction," said Chauhan. "The absence of visibility is arguably the greatest long-term risk. If you do not know why deliveries are failing, you cannot fix the underlying problem. Without trusted data, every improvement initiative becomes guesswork."

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Local roads: where ETAs are won or lost

One of the most common misconceptions in logistics is that delivery performance is determined on major highways. In reality, most of a driver's working day is spent on local roads, the final few kilometers leading to the customer. These are the streets where deliveries actually happen and where ETA accuracy is won or lost.

"If your map content doesn't accurately represent these local streets, including speed limits, turn restrictions, new roads and access changes, your ETA calculations become less reliable," said Chauhan. "Small errors of 30 to 60 seconds at each stop quickly compound across 100 deliveries into significant DIFOT failures." High-quality local road data improves routing accuracy, produces more reliable ETAs and gives dispatchers greater confidence that the delivery plan can be executed.

ATA vs. ETA: closing the gap

Every route starts with an ETA. Every customer promise is based on that ETA. But what customers actually experience is the ATA, the actual time of arrival. The closer the ETA is to the ATA, the more predictable the operation becomes.

"Closing that gap requires much more than better routing," said Chauhan. "It requires accurate road content, live traffic, realistic vehicle speeds, precise destination locations and optimization that reflects what actually happens in the field."

Reducing the ETA-to-ATA variance allows logistics providers to make more reliable commitments, improve customer confidence and negotiate tighter delivery windows with much lower operational risk. In a dispute, providers can also point to traceable, evidence-based records showing how closely planned times matched actual outcomes.

Read more: The hidden cost of bad routing (and how to avoid it)

Why address data is a hidden risk

"The issue is rarely just the street address," said Chauhan. "Drivers need the precise navigable access point, not only the official address. Knowing the correct loading dock, apartment entrance, hospital receiving bay or warehouse gate helps the driver reach the right destination the first time and reduces the risk of a missed time window."

Those small on-the-ground frictions can become material very quickly. Finding the right entrance or a safe place to stop can add several minutes to every delivery. Across hundreds or thousands of stops a day, those delays accumulate into significant schedule overruns.

This is where industrial points of interest (POIs)—such as loading docks, gate entry points, warehouse entrances, parking bays and freight receiving areas—become critical.

"Many deliveries don't fail because the driver couldn't find the street, they fail because they couldn't find the right place within the destination," said Chauhan. "

If navigation only takes the driver to the street address, valuable time is lost searching for the correct access point." Providing accurate industrial POIs and navigable access points removes that uncertainty and helps drivers complete deliveries faster and more consistently.

From capability to commercial advantage

Top delivery companies understand that routing is only one piece of a broader operating system. They combine routing with quality data, disciplined planning processes, realistic service commitments and the ability to respond when conditions change.

When re-routing helps, and when it hurts

Great routing is only one piece of the puzzle. Top delivery companies combine smart routing with solid data, careful planning and honest delivery promises. "Routing is only as good as the information you provide," said Chauhan. "If an address is inaccurate, delivery windows aren't realistic, vehicle capacities aren't considered or customer expectations exceed network capacity, no routing engine can consistently deliver excellent results."

Real-time re-routing helps teams adapt to traffic or warehouse delays. When it substitutes for better upfront planning, it creates instability rather than resolving the underlying cause.

Turning data into negotiation power

One of the most commercially valuable applications of DIFOT data is using it to negotiate with customers and retail partners. "Accurate ETAs improve much more than operational efficiency; they build commercial confidence," said Chauhan. "When delivery times are consistently reliable, logistics providers can commit to tighter service windows, improve warehouse scheduling, reduce waiting times and provide customers with greater certainty."

That confidence changes commercial conversations. Providers can move from negotiating around assumptions to negotiating with historical performance data and evidence-backed delivery capability. "If a customer asks for a one-hour delivery window that significantly reduces route efficiency, that should become a commercial discussion rather than simply an operational challenge," Chauhan said. "The objective is to align customer expectations with what the network can consistently deliver while maintaining profitability."

The sustainability dividend

Improving DIFOT does not just protect commercial relationships; it can also reduce environmental impact. "The quickest gains almost always come from reducing unnecessary kilometers," said Chauhan. "Better route optimization, improved stop sequencing, getting more deliveries out of each vehicle, fewer failed deliveries and more accurate destination data all reduce distance travelled. The initiatives that reduce operating costs are usually the same initiatives that reduce fuel consumption and carbon emissions."

For logistics operators under pressure to report on sustainability, this alignment matters. DIFOT optimization is increasingly a dual commercial and environmental win.

What separates the best from the rest

The companies that consistently improve DIFOT take a holistic approach. They combine accurate location data, optimization, real-time execution and continuous measurement with strong operational processes. "They treat every delivery as a learning opportunity," Chauhan said.

The biggest mistake is assuming technology alone will solve delivery challenges. "Sustainable DIFOT pretty much comes when you combine people, process and technology, not just relying on one solution in isolation," he said.

For Chauhan, DIFOT isn't just a business metric. It shapes how he sees the world around him. Like many consumers, he expects the same delivery experiences they've come to rely on from services like Uber Eats and Amazon: clear promises, accurate ETAs and reliable execution. When he spots a delivery driver struggling in the field, one question comes to mind immediately: "I'm always asking what maps do you use?"

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Frequently asked questions

What is DIFOT and why does it matter for logistics companies in Australia and New Zealand?

DIFOT (Delivery In Full and On Time) measures whether a delivery arrives with the correct quantity at the right place and within the agreed time window. A score above 95% is considered baseline competence in Australian supply chains, with world-class performers exceeding 97%. High DIFOT protects commercial relationships, reduces penalty exposure and enables stronger SLA negotiations with customers and retail partners.

What are the most common hidden causes of DIFOT failure in Oceania?

According to Jeeten Chauhan, Transport Lead for Oceania at HERE Technologies, the most common hidden causes include poor address quality, unrealistic delivery promises, inefficient route planning, inaccurate ETAs and a lack of real-time visibility when disruptions occur. Routing problems are often a symptom of these deeper issues rather than the root cause.

How does local road data quality affect last-mile delivery performance?

Most of a driver's working day is spent on local roads, not highways. If map content for these streets is inaccurate or outdated, ETA calculations become less reliable. Small errors of 30 to 60 seconds per stop compound quickly across 100 or more deliveries, contributing directly to DIFOT failures.

What is the difference between ETA and ATA, and why does it matter?

ETA (Estimated Time of Arrival) is the planned arrival time; ATA (Actual Time of Arrival) is what the customer experiences. Closing the gap between the two requires accurate road content, live traffic data, realistic vehicle speeds and precise destination information. A smaller ETA-to-ATA variance leads to more reliable delivery commitments and stronger negotiating positions with customers.

How does address data quality affect last-mile delivery performance?

Inaccurate or ambiguous address data leads to failed deliveries, missed time windows and costly second delivery attempts. Precise geocoding that identifies navigable access points, entrances and Industrial POIs, such as loading docks, gate entry points, warehouse entrances, parking bays and freight receiving areas, reduces delivery friction, particularly in dense urban environments and complex sites.

How can logistics companies use DIFOT data to negotiate better SLAs?

When companies track delivery performance with accurate, traceable data, they can move from assumption-based to evidence-based SLA negotiations. Trusted timestamps, planned versus actual routes, ETA predictions, proof of arrival, traffic conditions and delivery events create a stronger basis for resolving disputes and setting future SLA targets.

What is the fastest sustainability win for logistics operators?

Reducing unnecessary kilometers through better route optimization, accurate destination data, improved stop sequencing, getting more deliveries out of each vehicle and fewer failed deliveries is one of the fastest ways to cut both operating cost and carbon emissions. Chauhan notes that operational efficiency and sustainability increasingly point toward the same practical improvements, making DIFOT optimization a dual commercial and environmental win.