Fill Rate

Fill rate is a key supply chain metric that measures how well inventory meets demand. It indicates the percentage of customer orders (or order lines) that can be completely fulfilled from existing stock at the time of order.

Types of Fill Rate

Fill Rate Examples

Order Fill Rate

• 100 orders received
• 95 shipped complete
• Fill rate = 95%

Line Fill Rate

• 500 order lines received
• 485 lines shipped complete
• Fill rate = 97%

Industry Benchmarks

Fill Rate vs. Service Level

These terms are related but different:

• Fill rate - Actual performance achieved
• Service level - Target or goal
• Inventory policy - Designed to achieve service level

Improving Fill Rate

Inventory Management

• Accurate demand forecasting
• Appropriate safety stock levels
• Regular inventory reviews
• Better supplier reliability

Operations

• Cycle counting accuracy
• Inventory visibility across locations
• Efficient replenishment processes
• Cross-docking fast movers

Planning

• ABC analysis for stocking priorities
• Lead time reduction
• Supplier diversification
• Seasonal planning

Impact of Fill Rate

High Fill Rate Benefits

• Customer satisfaction
• Repeat purchases
• Competitive advantage
• Revenue retention

Low Fill Rate Costs

• Lost sales
• Customer churn
• Expedited shipping costs
• Emergency replenishment

Measurement Considerations

• Measure at point of order vs. ship date
• Exclude canceled/modified orders
• Track by product category
• Compare across channels