MEASUREMENT & PERFORMANCE

Fill Rate

Reading time
3 minutes

Fill rate measures how much demand is supplied under a defined fulfillment rule, expressed as a percentage of the relevant orders, lines or units requested.

FILL RATE IN PRACTICE

  1. Choose the denominator
  2. Count eligible fulfillment
  3. Calculate & label the rate

A WORKED EXAMPLE

90 of 100 orders. 90% complete.

Of 100 orders in the reporting period, 90 are supplied completely under the agreed first-shipment rule. Order fill rate is 90%. Separately, if 950 of 1,000 requested units are supplied, unit fill rate is 95%. Both can be correct for the same operation because they answer different questions.

WHAT THIS MEANS FOR YOUR QUOTE

Make the requirement explicit

Use the same scope and units when comparing providers. Put the agreed responsibility, included work and exception process into the service description.

Put this term to work. Use the 3PL pricing and rates guide for the wider invoice context and the guide to comparing 3PL quotes to compare the same scope, activity profile and billing units.

A LITTLE MORE CONTEXT

Questions about Fill Rate

Can unit fill rate exceed order fill rate?

Yes. A small shortage can leave an order incomplete while most requested units were supplied.

Does 100% fill rate mean every order arrived on time?

No. Quantity fulfillment and delivery timing are separate unless the KPI explicitly combines them.

Source & example notes

ASCM: warehouse KPIs. Further reading on the related controls and terminology. Product documentation describes a particular implementation; it does not establish a universal procedure or service commitment.

Definitions and worked examples are prepared by 3PL Hub. Numbers are illustrative, not provider rates, operating targets or guarantees.

Last updated: · 3PL Hub

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