The Procurement Glossary » Fill Rate
Fill Rate
Suppliers & Vendors
Definition
The percentage of ordered quantity a supplier delivers from stock without shortfall or backorder.
Explanation
Fill rate measures a supplier's ability to meet demand completely. A low fill rate signals stock or capacity problems and forces the buyer into expediting or substitution. It complements on-time metrics in judging reliability.
Example
A 97% fill rate means 3% of ordered units arrived short and had to be back-ordered.
Related terms
- On-Time In-Full (OTIF) — A delivery metric measuring the share of orders delivered both on the promised date and in the complete quantity.
- Backorder — An order (or part of one) that cannot be filled immediately because stock is unavailable, held to be fulfilled when stock arrives.
- Stockout — A situation where an item is unavailable because inventory has run out, disrupting operations or sales.
- Supplier Performance Management — The ongoing measurement of how well suppliers meet expectations on quality, delivery, cost and service.
Frequently Asked Questions
What is Fill Rate?
The percentage of ordered quantity a supplier delivers from stock without shortfall or backorder. Fill rate measures a supplier's ability to meet demand completely. A low fill rate signals stock or capacity problems and forces the buyer into expediting or substitution. It complements on-time metrics in judging reliability.
Can you give an example of Fill Rate?
A 97% fill rate means 3% of ordered units arrived short and had to be back-ordered.
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