Customer Order Fill Rate

Customer Order Fill Rate

KPI Details

Customer Order Fill Rate is an indicator of how well the company stocks products that are in demand from its customers. A low value for this KPI indicates that the company has inefficient demand planning and forecasting, poor inventory management, sub-par vendor management methods or inventory shrinkage issues. Low performers for this KPI not only experience slower order cycle times, but they also risk a dissatisfied customer base. These dissatisfied customers can lead to lost revenue to due attrition as well as lost revenue that stems from cancelling orders that are currently on backorder.

KPI Definition

The total number of customer orders that are shipped with all agreed upon lines/units divided by the total number of customer orders shipped over the same period of time, as a percentage.

KPI Best Practices

• Identify items that are selling more than their forecasted amount during the forecasting period
• Set targets for inventory accuracy rate to prevent stock-outs due to inaccurate inventory counts
• Set levels of safety stock that are high enough to last through increased demand

KPI Calculation Instructions Customer Order Fill Rate?

Two values are used to calculate this KPI: (1) the number of customer orders that are filled completely, and (2) the total number of customer orders shipped during the same measurement period. An order is defined as "filled completely" if the first (and only) shipment includes all of the order lines and the exact quantity of each order line. Only include orders that are processed and fulfilled in this calculation. Do not include orders that are cancelled due to certain items being on backorder in this calculation. An order line should be defined as a unique stock keeping unit for this calculation. An order should be defined as one batch of products that is requested by the customer, and typically corresponds to one purchase order.

KPI Formula :

(Number of Customer Orders Filled Completely / Total Number of Customer Orders Shipped) * 100