What is fill rate?

Fill rate is a measure used in supply chain management to evaluate the efficiency of inventory utilization. It measures the percentage of customer demand that is successfully met from available inventory at any given time.

A high fill rate indicates that a company is effectively managing its inventory and meeting customer demand, while a low fill rate indicates inefficiencies in the supply chain or inventory issues.

Fill rate can be calculated by dividing the total number of orders filled on time by the total number of orders placed, and then multiplying by 100 to get a percentage.

It is important for companies to monitor fill rate regularly to identify any issues in inventory management and make necessary adjustments to improve customer satisfaction and operational efficiency. Improving fill rate can lead to increased customer loyalty and sales growth.