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RS2

Order Fill Rate

Fill Rate measures the ability to ship from stock within the agreed service level window (e.g. same-day or 24 hrs); demonstrating the speed at which it promises to satisfy demand.

Calculation

Order Fill Rate
=
Delivered   × 100%
Requested
where:
  • Delivered = The total volume shipped within the service level window in the reporting period
  • Requested = The total volume ordered for ASAP shipment in the reporting period. If applicable this may include orders canceled due to lack of product.
Unit of Measure: %

Importance

A higher Order Fill Rate indicates that the company is better at fulfilling orders within the lead time service level. Consistently meeting the lead time enables customers to use the lead time service levels in their planning and execution processes and can be a competitive advantage. Order Fill Rate is typically used for supply chains where stock-outs are relevant (Make-to-Stock supply chains).

Notes

Order Fill Rate is considered less relevant to Make-to-Order and Engineer-to-Order supply chains, these generally put more emphasis on improving RS1. Order Cycle Time focuses on the average and deviation of the time. Order Fill Rate focuses on the average and deviation of quantities.

The service level window is the desired, communicated and/or agreed order-to-ship lead time for the product. An example is same-day shipping for an office supplies (online) retailer. A key challenge exists for businesses where the impact of a stock-out cannot be recorded by evaluating customer orders.

Order Fill Rate is a shipment date based metric.

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Hierarchy

IDNameLevelx
RSResponsiveness0RS
RS2Order Fill Rate1RS2
RS21Stock Out Ratio2RS21
RS22Order Processing Delays2RS22

Process(es)

IDNameLevelx
PPlan1P
P1Plan Supply Chain Operations2P1
P4Plan Deliver2P4
DDeliver1D
D1Deliver-From-Stock2D1
Order Fill Rate Responsiveness 22000 1 Responsiveness, Fill Rate, Stock-out, Supply Chain, Retail The ability to ship from stock within the agreed service level window (e.g. same-day or 24 hrs); demonstrating the speed at which a business promises to satisfy demand