Quick Summary: Fill Rate measures the ability to fulfill customer demand, while Fill Rate Impact identifies specific items responsible for reducing overall performance.
What Is Fill Rate
Fill Rate is a measure of product availability. It answers the question: “When customers wanted to buy from me, was I able to supply them?”
On the Dashboard, two key Fill Rate figures are displayed:
Achieved Fill Rate
The percentage of time you were actually able to fulfill demand over a recent period.
Example: If an item was out of stock for 3 days in a 30-day period, its achieved fill rate would be 90 percent.
The location’s overall achieved fill rate is calculated by weighting each item’s performance by its forecast value.
Target Fill Rate
The desired level of stock availability set as a business goal.
The goal is to bring the Achieved value as close to the Target value as possible without unnecessarily increasing stock holding.
A low fill rate is primarily caused by items that are currently Stocked Out or in a Potential Stock Out state.
➜ For more on this topic, read: Stock Statuses and Critical Review Explained
What Is Fill Rate Impact
Fill Rate Impact measures how much an individual item has reduced the location’s overall achieved fill rate.
It is expressed as a percentage showing exactly how much an item is responsible for pulling down total performance.
Example: A Fill Rate Impact of 2 percent means that one item alone is responsible for a 2 percent drop in the location’s achieved fill rate.
The best fill rate impact is 0%, which means the item has not been out of stock recently.
The purpose of this metric is to help you prioritize. By identifying the items with the highest Fill Rate Impact, you can focus on fixing the problems that hurt customer service the most.
An item’s impact is influenced by:
Its own achieved fill rate.
Its forecasted demand (including distribution forecasts and BOM forecasts).
Its cost.
Items with high demand and high cost that are frequently out of stock will have the largest impact.
➜ For more on this topic, read: Fill Rate Impact Calculation Explained
Understanding the Fill Rate Panel
On the Dashboard, the Fill Rate panel displays:
Achieved value: The actual fill rate achieved over the last 30 days, weighted by each item’s forecast value.
Target value: The desired service level set for the location.
Variance: The percentage difference between the starting benchmark achieved fill rate and the current achieved fill rate.
Trend line: A visual indication of how fill rate performance is changing over time.
Your goal: To review the items with the highest negative Fill Rate Impact and take corrective action to improve availability without inflating stock unnecessarily.
Note: When improving your Fill Rate KPI, Stock Holding may temporarily increase as additional orders are placed to resolve stockouts or potential stockouts. Compare Fill Rate results with Stock Holding to ensure improved service levels do not increase inventory beyond what you can afford.
➜ For more on this topic, read: Stock Holding Explained
The Fill Rate KPI shows the historical trend of both your achieved and target fill rates. To view how your Fill Rate, Stock Holding, and other KPIs are expected to change based on current forecasts and policy settings, use the Stock Projection feature.
➜ For more on this topic, read: Stock Projection Feature
How To: Access the Full Fill Rate Report
Fill Rate Impact Calculation Explained
Stocked-Out Items' Effect on the Achieved Fill Rate Explained
Stock Projection Feature
➜ Read: Stock Projection Feature
⚠️ Watchouts
Zero-demand items: Even an item with zero stock will not be considered Stocked Out, and will not negatively impact your fill rate, if it currently has no demand from sales, BOM, or distribution.
Target value usage: The Target Fill Rate is a goal and is not used in the calculation of Fill Rate Impact.
💡 Tips
Impact window: An item’s Achieved Fill Rate is measured over the last 30 days, so the Fill Rate Impact panel reflects both current and recent stockouts.
High-impact focus: Concentrate on the items listed in the Fill Rate Impact panel on the Dashboard. Resolving the stock issues for just these Top 5 items will have the most significant positive effect on your overall achieved fill rate.
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