Calculate fill rate for supply chain management including order fill rate, line fill rate, unit fill rate, case fill rate, and perfect order rate. Compare against 2025 industry benchmarks for CPG, retail, pharmaceutical, and manufacturing. Includes fill rate formulas, improvement strategies, and business impact analysis.
Frequently Asked Questions
What is fill rate and how do I calculate it for my business?
Fill rate measures the percentage of customer demand met from available inventory without backorders or stockouts.
Three calculation methods: (1) UNIT FILL RATE: (Units shipped ÷ Units ordered) × 100.
Example: Ordered 1,000 units, shipped 950 units → 95% fill rate. (2) LINE FILL RATE: (Complete order lines ÷ Total order lines) × 100.
Example: 100 order lines, 92 completely filled → 92% line fill rate. (3) ORDER FILL RATE (Most stringent): (Perfect orders ÷ Total orders) × 100.
Order perfect only if ALL items shipped complete.
Example: 50 orders, 45 perfect → 90% order fill rate.
Industry benchmarks 2025: Retail 95-98%, E-commerce 97-99% (Prime 99%+), B2B Manufacturing 90-95%, Wholesale 93-96%.
Formula selection: Use unit fill rate for SKU-level analysis, line fill rate for operational metrics, order fill rate for customer satisfaction measurement.
Target: 95%+ minimum (world-class 98-99%).
Below 90% = significant stockout issues costing revenue and customer trust.
How can I improve my fill rate and what does a low fill rate cost my business?
COSTS OF LOW FILL RATE: (1) Lost sales: 90% fill rate = 10% unfulfilled demand. $1M monthly orders = $100K lost revenue/month = $1.2M/year. (2) Customer churn: 70% of customers won't reorder after stockout (Retail Systems Research).
One $10K/year customer lost = $50K lifetime value. (3) Expedited shipping: Rush orders cost 3-5x normal freight ($20 → $100 per order). 100 rush orders/month = $8K extra costs. (4) Brand damage: <95% fill rate = poor reputation, impacts B2B contracts.
IMPROVEMENT STRATEGIES: (1) Safety stock optimization: Calculate (Max daily usage × Max lead time) - (Avg daily usage × Avg lead time).
Example: 50 units/day max × 10 days lead = 500 - (30 avg × 7 days) = 290 units safety stock.
Increases fill rate 90% → 96%. (2) Demand forecasting: Use 12-month rolling average + seasonality adjustments.
AI forecasting improves accuracy 15-30%. (3) Supplier diversification: 2-3 suppliers per critical SKU reduces stockouts 40%. (4) ABC analysis: A items (top 20% revenue) = 99% fill rate target, 2 weeks stock.
B items 95%, C items 90%. (5) Lead time reduction: Negotiate shorter lead times (10 days → 7 days) = 25% less safety stock needed. (6) Real-time inventory visibility: WMS/ERP integration prevents overselling.
Result: 92% → 97% fill rate = 5% revenue recovery + customer retention improvement 15-25%.
About This Page
Editorial & Updates
- Author: SuperCalc Editorial Team
- Reviewed: SuperCalc Editors (clarity & accuracy)
- Last updated: 2026-01-13
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Financial/Tax Disclaimer
This tool does not provide financial, investment, or tax advice. Calculations are estimates and may not reflect your specific situation. Consider consulting a licensed professional before making decisions.