![]() What are some other reasons to care about your fill rate? Find in the answers below: It points out how effectively you meet the consumer demand.Īnd that’s not by chance that this metric is also known as demand satisfaction rate. In supply chain management, demand satisfaction rate comes as one of the most essential metrics to follow. No matter what niche you operate, you track some metrics and measure your success with actual numbers. You should be careful with your numbers and figure out what type of demand satisfaction rate you actually calculate. You already have to calculate this metric at a unit level and your case fill rate is 85% (50 orders, but 53 items: that makes a huge difference). So you had to sell 53 books but only 45 were available in your stock. The second scenario is that you got 50 orders from 50 customers but 3 of your customers ordered not 1 but 2 books. 45 books were available, so your order FR is 90%. You got 50 orders last month and every order was placed by 50 different customers (each ordered 1 book). What’s the difference? We will clarify with two separate examples. When people say “fill rate” in general, they mean “ order fill rate” which is one of its types. You may satisfy your customer’s demand but his customer experience may be negative. In this case, you may hurt your fill rate but your service level may increase. If fill rate answers only that one single question (was the consumer’s desired item available in the stock?), service level covers questions like how you tried to manage the situation, maybe that exact item was sold out but you agreed with your customer to ship an alternative or he agreed to place a backorder. Service level expresses customer satisfaction in a broader sense. Service level vs fill rate: What’s the difference? (Total Number of Customer Orders Shipped / Number of Customer Orders Filled) * 100įor example, your customers placed 1800 orders in a month and you shipped only 1753 of the total. When you multiply that number by 100, you will learn your fill rate in the form of a percentage. You divide the number of customer orders shipped in full by the number of customer orders placed. Backorders are orders that are not available in stock at the moment but the customers place them to receive later. why that’s a must-track metric in the inventory management,įill rate is the percentage of customer orders that a company can ship immediately from the stock without placing backorders or missing a sale.In this article, we are going to answer questions like ![]() And the fill rate is a metric that will provide valuable insights on how reliable you are for your consumer as a supplier and how professionally you manage your resources. Since you are reading our article now, we are almost certain you are operating with a just-in-case inventory management system and maintain a full inventory. ![]()
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