Fill Rate
Fill rate is the percentage of customer demand that is met from available stock without stockouts or backorders.
Fill rate measures how well a supplier or warehouse satisfies orders as they come in. It can be expressed by units, order lines or complete orders — for example, an order fill rate is the share of orders delivered complete and on time. A high fill rate signals dependable supply; a low one points to stock or fulfilment problems.
For buyers, a supplier's fill rate is a key performance indicator captured on scorecards, because consistent complete deliveries reduce the need for chasing, part-shipments and emergency buys. It sits alongside on-time delivery as a core measure of fulfilment reliability.
Example
If a buyer orders 1,000 units and the supplier ships 950 immediately with 50 on backorder, the unit fill rate for that order is 95%.
Frequently asked questions
- What is fill rate?
- Fill rate is the percentage of demand met directly from available stock, without stockouts or backorders. It can be measured by units, order lines or complete orders.
- What is a good fill rate?
- It varies by industry, but many businesses target 95% or higher. The right level balances the cost of holding stock against the cost and disruption of unfulfilled orders.
Related terms
Stockout
A stockout is when an item is unavailable because inventory has run down to zero, so demand for it cannot be met.
Read definitionSupplier Scorecard
A supplier scorecard is a tool that rates a supplier's performance against weighted criteria such as delivery, quality, price and responsiveness.
Read definitionSafety Stock
Safety stock is extra inventory held as a buffer to protect against unexpected demand spikes or supply delays.
Read definitionGo deeper
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