Customer Order Line Item Fill Rate

Customer Order Line Item Fill Rate

KPI Details

Customer Order Line Item 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 order lines filled completely as requested by the customer divided by the total number of customer order lines filled over the same period of time, as a percentage.

KPI Best Practices

• Update forecasted demand of inventory at regular intervals (weekly, monthly, etc.) to reduce stock-outs
• Maintain a centralized pool of inventory rather than allocating stock to certain channels
• Analyze historical inventory levels to adjust for peak sales and seasonal demand months in advance

KPI Calculation Instructions Customer Order Line Item Fill Rate?

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

KPI Formula :

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