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Fill rate

Fill rate is a key performance metric in logistics that measures the percentage of customer orders fulfilled entirely and on time.  

What is the fill rate? 

Fill rate, in the context of inventory management and order fulfillment, refers to the percentage of customer demand or orders that can be fulfilled from available inventory at a given time. It measures how well a company or supply chain can meet customer orders with the stock on hand.  

How to calculate the fill rate? 

The fill rate is calculated by dividing the total number of items or orders fulfilled by the total number of items or orders requested and multiplying by 100 to express it as a percentage. It provides insights into the effectiveness of inventory management and the ability to satisfy customer demand.  

How to evaluate the fill rate? 

A high fill rate indicates that a company can meet a significant portion of customer orders promptly and, on the whole, suggests high customer service and operational efficiency. Conversely, a low fill rate implies that a company needs help to fulfill customer orders due to stockouts, backorders, or inventory management challenges. 

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