Fill Rate Calculator
What is Fill Rate?
Fill rate, in the context of inventory and order fulfillment, is a crucial metric that measures the percentage of an order that can be fulfilled from available stock. It's a key performance indicator (KPI) for businesses to understand their inventory management efficiency and their ability to meet customer demand promptly. A high fill rate indicates that a company is effectively managing its inventory and is able to ship out requested items as they are ordered. Conversely, a low fill rate can lead to backorders, delayed shipments, customer dissatisfaction, and lost sales.
There are a few common ways to calculate fill rate, but a widely used method for order fulfillment is the Line Fill Rate, which focuses on the proportion of order lines that can be completely fulfilled. Another common metric is the Unit Fill Rate, which measures the percentage of individual units ordered that are actually shipped. This calculator focuses on a comprehensive approach to fill rate, considering both the quantity of items shipped against what was ordered and the accuracy of those shipments.
How to Calculate Fill Rate:
The fill rate can be calculated using the following formula, taking into account the number of items shipped, the total number of items ordered, and the number of those shipped items that were correct and without errors:
Fill Rate (%) = (Number of Correct Items Shipped / Number of Items Ordered) * 100
In this calculator, we are using the Unit Fill Rate concept to assess how well you are meeting the quantity of items requested by your customers.
Example Calculation:
Let's say a customer orders 1100 items. You managed to ship out 1000 items in total. Out of these 1000 items shipped, 980 were the correct items that the customer ordered, and 20 were incorrect (wrong item, damaged, etc.).
- Number of Items Shipped: 1000
- Number of Items Ordered: 1100
- Number of Correct Items Shipped: 980
Using the formula:
Fill Rate (%) = (980 / 1100) * 100
Fill Rate (%) = 0.8909 * 100
Fill Rate (%) = 89.09%
This means that approximately 89.09% of the items ordered by the customer were successfully and correctly shipped.