In Logistics, D.I.F.O.T. stands for Delivery In
Full On Time. It is a KPI measurement of a supplier's
For example, a Purchasing department may run regular
DIFOT reports to measure the performance of suppliers'
deliveries to their warehouses.
Freight companies in particular like to use their
DIFOT percentage (eg: 98% DIFOT) to win over
Some also offer a DIFOT report so customers can see how
many of their deliveries are being 'delivered in full and
Direct Charge Purchasing refers to the purchasing
of non-inventory items. These purchases bypass the inventory
and go directly onto the cost of a project/job/repair etc.
For example, a warehouse officer at a mining site raises
a requisition for a hose assembly which is not in the
inventory system. The Purchasing Officer responsible for
direct-charge purchasing would need to source and order the
The opposite of direct charge purchasing would be
Direct Procurement is the procurement of
goods/services that are directly related to the 'product'
For example, with an engineering firm designs and builds
hydraulic pumps, the direct procurement spend would include
the machined parts, check valves, pulse timers, casings etc,
that go into the pumps.
On the other hand, Indirect Procurement is the
procurement of goods/services that are not directly related
to the 'product'.
Using the previous example, the indirect procurement
spend would include consumables (rags, gloves, earplugs),
lubricants, testing equipment etc
In international trade, a Letter of Credit
document is an irrevocable promise of payment, and its
purpose is to lower the transaction risk between the buyer
and the seller, by the exchanging of approved documents.
As an example of the process:
An Australian company orders $80000 of computer cable
from China. After agreeing on terms and conditions, the
Australian company applies to their bank for an irrevocable
letter of credit, who then send the approved credit
documents to the seller's bank.
The seller's bank then advises the seller of the approved
letter of credit. The goods are shipped in exchange for a
bill of lading, which the seller presents to their bank.
Upon receiving the bill of lading, the seller's bank pays
the seller; the buyer's bank reimburses the seller's bank;
and the buyer's bank debits the buyer. The buyer then
receives the original documents (including the original bill
of lading), so they can collect their cable.
Where Upstream is the business activities at its initial
stages leading up to production, Downstream refers to
business operations and activities in the later stages,
closer to the point of sale.
For example, in the natural gas industry, Downstream
includes the refining, distribution, marketing, storage, and
In Contract Law, what is meant by the terms Duress and
Undue Influence? Simply, Duress is when someone is pressured
into a contractual agreement, and Undue Influence is when
someone is tricked into a contract. If a court finds there
has been Duress and Undue Influence, they can void the