what is fill rate

what is fill rate is a key performance metric in inventory and supply chain management. Fill rate measures the percentage of customer orders that are fulfilled on the first shipment, without the need for backorders or partial shipments. A high fill rate indicates that a company can reliably meet customer demand and avoid delays. On the other hand, a low fill rate suggests potential supply chain issues or insufficient inventory. Companies aim for a high fill rate to improve customer satisfaction and reduce the costs associated with backordering and shipping delays.