Fill rate
Quick answer
The percentage of customer demand fulfilled fully from stock at first delivery, without backorder - a key service-level metric.
Key takeaways
- Line fill rate - fully fulfilled lines / total lines
- Unit fill rate - units shipped / units ordered
- Order fill rate - 100%-fulfilled orders / total orders (the strictest)
What fill rate is
Fill rate measures how much of demand you fulfil from available stock at first delivery. It can be computed by lines, units or orders (order fill rate = fully fulfilled orders / total orders).
Types of fill rate
- Line fill rate - fully fulfilled lines / total lines
- Unit fill rate - units shipped / units ordered
- Order fill rate - 100%-fulfilled orders / total orders (the strictest)
Why it matters
Low fill rate = lost sales and frustrated customers. At retailers, fill rate below threshold = OTIF penalties. It is the 'In Full' component of OTIF, alongside 'On Time'.
How CRMconnect helps
Through correct allocation, realistic ATP and demand-based replenishment, CRMconnect raises fill rate without overstocking: fewer stockouts on demanded products, with less capital locked in slow movers.
Real-world example
A distributor with 88% order fill rate lost orders and received penalties. With optimised allocation and replenishment in CRMconnect per SKU, order fill rate rose to 97% and OTIF penalties dropped 80%.
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Frequently asked
Difference between fill rate and OTIF?+
Fill rate = the 'In Full' component (how much of demand you fulfil). OTIF combines 'On Time' and 'In Full'. You can have good fill rate but poor OTIF if you deliver in full but late.
What fill rate is good?+
It depends on industry, but 95%+ on lines is healthy in distribution. Order fill rate (fully fulfilled orders) is stricter and usually lower. Retailers impose contractual thresholds.
How do I raise fill rate without overstock?+
Through per-SKU analysis: enough buffer on frequently demanded products, reduced stock on slow movers, realistic ATP and replenishment triggered by real demand, not intuition.
Where CRMconnect fits
Related terms
OTIF (On-Time In-Full)
Share of orders delivered on time AND complete. Critical KPI for modern retailer relationships.
OperationsBackorder
Order accepted but not deliverable from current stock - fulfilled at a known future date.
OperationsPerfect order rate
The percentage of orders delivered with no errors - on time, in full, undamaged and with correct documentation.
TechnologyOMS (Order Management System)
The system centralizing orders from every channel (EDI, online, phone, field agent) and orchestrating execution.