Fill Rate definitions and calculations can vary greatly. In the broadest sense, Fill
Rate calculates the service level between 2 parties. It is usually a measure of shipping
performance expressed as a percentage of the total order.
Sample Fill Rate Metrics:
Line Count Fill Rate: The amount of order lines shipped on the initial shipment
versus the amount of lines ordered. This measure may or may not take into
consideration the requested delivery date (see On Time Delivery)
example- ABC Company orders 10 products (one order line each) on its Purchase Order
#1234. The manufacturer ships out 7 line items on March 1 and the remaining 3 items on
March 10. The Fill Rate for this Purchase Order is 70%. It is calculated once the
initial shipment takes place.
Calculation: Number of Order Lines Shipped on the Initial Order* / Total Number of Order
Lines Ordered (7/10 = 70%)
SKU Fill Rate: The number of SKU's (Stock Keeping Units) ordered and shipped is
taken into consideration. Above, we consider each Order Line to have an equal value (1 ).
Here, we count the SKU's per Order Line.
example: If on Line 1, the order was for 30 skus of product "AB" and on line 2,
they ordered 10 skus of item "AC". If Line 1 ships on April 1 and line 2
on April 20, the the SKU Fill Rate is 75%
Calculation: Number of SKUs Shipped on the Initial Shipment / Total Number of SKUs Ordered
(30/40 = 75%).
Case Fill Rate: The amount of cases shipped on the initial shipment versus the
amount of cases ordered.
example- ABC Company orders 6 products that total 200 cases. The
manufacturer ships out 140 cases on 3/1/01 and the remaining 60 cases
3/10/01. The Fill Rate for this Purchase Order is 70%. It is
calculated once the
initial shipment takes place. The number of Order Lines is not
considered in this
calculation. This Fill Rate measure gives "weight" to the order
lines that are
Calculation: Number of Cases Shipped on the Initial Order / Total Number of Cases Ordered
. (140/200 = 70%)
Value Fill Rate: Same as above, except the order line value is used instead of
Calculation: Value of Order Lines Shipped on the Initial Order / Total Value of the Order
($400/$500 = 80%)
What happens if a customer orders 10 products, but then decides to expedite out just
one of them? Should the other 9 products be counted as a Fill Rate "miss"? ( 1
shipped / 10 ordered = 10%). The answer is no. You should factor rushed lines out of your
Fill Rate calculation. This can usually be done by identifying the routing code (as in an
SAP system) or by the carrier (FEDX).
*NOTE: "Shipped on the Initial Order" - usually refers to the
first shipment out of the primary warehouse. Therefore, if an order line ships out of an
alternate shipping facility and it ships out on/before the first shipment out of the
primary warehouse, then it is considered a + to the Fill Rate.