// Glossary

Fill rate

Percentage of demand served from available inventory. It measures whether you had the product when the customer asked, without considering punctuality.

Fill rate is the percentage of demand you managed to serve from available inventory.

Unlike OTIF, it does not consider punctuality: it answers one question, did you have the product when it was requested?

The three measurement bases

It can be calculated on different bases, and choosing the wrong one is the most common source of pointless arguments:

BaseWhat it measuresWhen to use it
By line% of order lines filled completeMost used; good balance
By unit% of pieces shipped over pieces orderedWhen volume per line varies widely
By order% of orders filled 100%The strictest; close to OTIF

The same month can show 97% by unit and 88% by order. Neither is lying: they measure different things.

What a low fill rate reveals

Rarely a purchasing problem. The usual causes, in order of frequency:

  1. Inventory inaccuracy — the system said there was stock and there was not
  2. Forecast misaligned with real demand
  3. Concentration in a few SKUs that run out and drag the average down

The first is the most common and the cheapest to fix: it does not require more inventory, it requires knowing where the inventory you already have actually is.

// Cross-link

Related services

Our services that build on this concept.

// Contact us

¿Necesitas implementar Fill rate en tu empresa?

Every company is different. Tell us your case and we will review which model fits.