Fill Rate Percentage Calculator
What is Fill Rate?
Fill rate is a critical supply chain metric that measures the percentage of customer demand met by immediate stock availability, without backorders or lost sales. It represents how effectively your inventory management system meets customer expectations. A high fill rate indicates efficient inventory planning, while a low fill rate suggests stockouts and potential revenue loss.
The Fill Rate Formula
To calculate the fill rate percentage, you divide the number of items or orders successfully fulfilled by the total number of items or orders requested. The formula is expressed as:
Types of Fill Rates
- Order Fill Rate: Measures the percentage of complete orders shipped out of total orders placed.
- Line Fill Rate: Measures the percentage of individual order lines (SKUs) fulfilled completely on the first attempt.
- Unit Fill Rate: Focuses on the total number of individual items shipped versus the total units ordered by customers.
Real-World Example
Imagine an e-commerce store received 1,000 orders during a holiday sale. Out of those, the warehouse was able to ship 920 orders immediately from existing stock. The remaining 80 orders were placed on backorder because a specific item was out of stock.
Calculation: (920 ÷ 1,000) × 100 = 92% Fill Rate.
A 92% fill rate is generally considered good, but many top-tier retailers aim for 98% or higher to ensure maximum customer satisfaction.
How to Improve Your Fill Rate
- Demand Forecasting: Use historical data and seasonal trends to predict future demand more accurately.
- Safety Stock: Maintain a buffer of inventory for high-velocity items to handle unexpected spikes in demand.
- Supplier Reliability: Work with vendors who have short lead times and consistent delivery schedules.
- Inventory Audits: Regularly perform cycle counts to ensure your digital inventory records match physical stock.