Fill rate measures a supplier's performance in providing goods and services to another party at a certain point in time. Suppliers can measure it in terms of the number of products shipped or their dollar value. The fill rate calculation should be complemented with other metrics to assess a supplier's overall performance.
Calculating Fill Rate
To determine fill rate, divide the amount of work or product a supplier has provided by the total amount of work or product necessary. Imagine that a customer requests 60 cases of product from a business and the business has shipped 20 cases. The fill rate is 20 divided by 60, or 33.3 percent. If the company ships another 15 cases of product today, the fill rate rises to 35 divided by 60, or 58.3 percent.
Fill Rate Drawbacks
Fill rate measures task performance at a certain period in time. However, one of its drawbacks is that it does not measure how quickly or efficiently the company completed the task. A fill rate of 90 percent at the end of the month does not indicate when orders were shipped during the month or how many shipments were sent. For this reason, using fill rate as one of several metrics to measure overall supplier performance is usually recommended.
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