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4/7/2015

fillrate

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FILLRATE
FillRatedefinitionsandcalculationscanvarygreatly.Inthebroadestsense,FillRatecalculatesthe
servicelevelbetween2parties.Itisusuallyameasureofshippingperformanceexpressedasa
percentageofthetotalorder.
SampleFillRateMetrics:
LineCountFillRate:Theamountoforderlinesshippedontheinitialshipmentversustheamount
oflinesordered.Thismeasuremayormaynottakeintoconsiderationtherequesteddeliverydate
(seeOnTimeDelivery)
exampleABCCompanyorders10products(oneorderlineeach)onitsPurchaseOrder#1234.The
manufacturershipsout7lineitemsonMarch1andtheremaining3itemsonMarch10.TheFill
RateforthisPurchaseOrderis70%.Itiscalculatedoncetheinitialshipmenttakesplace.
Calculation:NumberofOrderLinesShippedontheInitialOrder*/TotalNumberofOrderLines
Ordered(7/10=70%)

InventoryFinance

SKUFillRate:ThenumberofSKU's(StockKeepingUnits)orderedandshippedistakeninto
consideration.Above,weconsidereachOrderLinetohaveanequalvalue(1).Here,wecountthe
OnTimeShipping/Delivery SKU'sperOrderLine.
example:IfonLine1,theorderwasfor30skusofproduct"AB"andonline2,theyordered10
PerfectOrderMeasure
skusofitem"AC".IfLine1shipsonApril1andline2onApril20,thetheSKUFillRateis75%
Calculation:NumberofSKUsShippedontheInitialShipment/TotalNumberofSKUsOrdered
PerformancetoPromise
(30/40=75%).
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CaseFillRate:Theamountofcasesshippedontheinitialshipmentversustheamountofcases
ordered.
exampleABCCompanyorders6productsthattotal200cases.Themanufacturershipsout140
caseson3/1/01andtheremaining60caseson3/10/01.TheFillRateforthisPurchaseOrderis
70%.Itiscalculatedoncetheinitialshipmenttakesplace.ThenumberofOrderLinesisnot
consideredinthiscalculation.ThisFillRatemeasuregives"weight"totheorderlinesthatare
shippedout.
Calculation:NumberofCasesShippedontheInitialOrder/TotalNumberofCasesOrdered.
(140/200=70%)
ValueFillRate:Sameasabove,excepttheorderlinevalueisusedinsteadofcases.
Calculation:ValueofOrderLinesShippedontheInitialOrder/TotalValueoftheOrder
($400/$500=80%)
Whathappensifacustomerorders10products,butthendecidestoexpediteoutjustoneofthem?
Shouldtheother9productsbecountedasaFillRate"miss"?(1shipped/10ordered=10%).The
answerisno.YoushouldfactorrushedlinesoutofyourFillRatecalculation.Thiscanusuallybe
donebyidentifyingtheroutingcode(asinanSAPsystem)orbythecarrier(FEDX).
*NOTE:"ShippedontheInitialOrder"usuallyreferstothefirstshipmentoutoftheprimary
warehouse.Therefore,ifanorderlineshipsoutofanalternateshippingfacilityanditshipsout

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4/7/2015

fillrate

on/beforethefirstshipmentoutoftheprimarywarehouse,thenitisconsidereda+totheFillRate.

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intendedonansweringquestionsaboutInventoryControl,Sourcing,Manufacturing,Distribution
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