Fill Rate Calculator
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How to Calculate Fill Rate: A Complete Guide
Fill rate is a critical supply chain metric that measures the percentage of customer demand met through immediate stock availability. A high fill rate indicates efficient inventory management and high customer satisfaction, whereas a low fill rate suggests lost sales opportunities and potential stockouts.
The Fill Rate Formula
The standard formula to calculate fill rate is simple:
How to Calculate Fill Rate in Excel
Excel is the most common tool for tracking inventory metrics. To calculate fill rate in Excel, follow these steps:
- Input Data: Enter your "Total Units Ordered" in Cell A2 and "Total Units Shipped" in Cell B2.
- Apply Formula: In Cell C2, enter the following formula:
=B2/A2. - Format as Percentage: Right-click Cell C2, select "Format Cells," and choose "Percentage" from the list.
- Batch Processing: If you have multiple product lines, drag the fill handle from C2 down to apply the calculation to the entire column.
Practical Example
Imagine you run an e-commerce store selling wireless headphones. In the month of October, you received orders for 1,200 units. However, due to a delay in the supply chain, you were only able to ship 1,050 units immediately from your available stock.
- Total Units Ordered: 1,200
- Total Units Shipped: 1,050
- Calculation: (1,050 / 1,200) = 0.875
- Fill Rate: 87.5%
In this scenario, your fill rate is 87.5%, meaning 12.5% of your customer demand was either backordered or lost entirely.
Why Tracking Fill Rate is Essential
Monitoring fill rate helps businesses identify several key operational issues:
- Inventory Accuracy: Discrepancies between your warehouse system and physical stock.
- Supplier Reliability: Identifying suppliers who frequently cause stock shortages.
- Demand Forecasting: Understanding if you are consistently underestimating seasonal demand.
- Customer Loyalty: High fill rates ensure customers receive what they want when they want it, reducing the likelihood of them switching to competitors.
Types of Fill Rate
Depending on your business model, you might track different variations:
- Item Fill Rate: The percentage of specific items delivered versus ordered.
- Line Fill Rate: The percentage of order lines (unique SKUs) delivered completely.
- Order Fill Rate: The percentage of entire customer orders delivered in full (the most stringent metric).