What is Fill Rate

Fill rate is a logistics and inventory performance metric that measures the percentage of customer orders or order lines that are fulfilled completely from available stock without requiring backorders or substitutions. It reflects a company's ability to meet customer demand immediately and efficiently.

Real-World Example

If a customer orders 100 items and 95 items are available and shipped immediately, the fill rate would be 95%. The missing 5% may require backordering or alternate fulfillment.

Advantages and Challenges

Advantages

High fill rates improve customer satisfaction and loyalty by ensuring fast, reliable deliveries.
Helps maintain positive brand reputation through consistent order fulfillment performance.
Supports better forecasting and inventory management by highlighting service gaps.
Can be used to benchmark operational efficiency across different warehouses, vendors, or periods.

Challenges

Pursuing excessively high fill rates can lead to overstocking, tying up capital and increasing carrying costs.
Fill rate alone does not account for product profitability or strategic inventory priorities.
May mask inefficiencies if high fill rates are achieved through costly expedited shipments or manual interventions.
Difficult to maintain consistently for seasonal or highly volatile demand patterns without sophisticated planning.

Related Terms

What We Do

MET CO is a logistics provider built for speed, precision, and growth. We specialize in cross-docking, short-term warehousing, and wholesale distribution, with a strong track record in the grocery and automotive sectors.

As our clients scale, so do we—expanding into eCommerce fulfillment, value-added services, and just-in-time delivery. Our operations are designed to handle both bulk and high-frequency inventory with minimal friction and full visibility.

Whether you need rapid turnarounds, zone-based storage, or reliable outbound execution, MET CO acts as an extension of your supply chain—lean, fast, and aligned to your goals.

Frequently Asked Questions

What is a good fill rate percentage?

A good fill rate is typically above 95% for most industries, but ideal targets can vary based on the product type, industry standards, and customer expectations.

How is fill rate calculated?

Fill rate is calculated by dividing the number of fulfilled orders (or units) by the total number of requested orders (or units) and multiplying by 100 to get a percentage.

How can businesses improve their fill rate?

Improving fill rate requires better demand forecasting, stronger supplier relationships, optimized inventory management, and real-time visibility into stock levels across locations.

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