Fill Rate

Category: Operations

Definition (plain English)

The percentage of customer demand or order quantity supplied from available stock without backorder, cancellation, or shortage.

Why it matters commercially

Fill rate shows whether sourcing, inventory, and warehouse execution can support customer promises without emergency freight or lost sales.

Example

A wholesaler hit 92% fill rate overall, but imported chilled SKUs were only 71% because the reorder point ignored customs and receiving delays.

Common mistake

Reporting fill rate without defining whether it is measured by lines, units, value, orders, first shipment, or final customer receipt.

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