Fill Rate
Fill rate is the percentage of customer demand that is fulfilled from available inventory without backorders, stockouts, or partial shipments, measured at the order level, line-item level, or case level depending on the industry and customer requirements.
Why It Matters
Fill rate directly impacts customer satisfaction and revenue. A 95% fill rate sounds good until you realize it means 5% of orders are incomplete, generating customer complaints, penalty chargebacks, and second shipments that cost more than the margin on the original order. Retail compliance programs (Walmart, Target) measure fill rate at the case level and penalize shortfalls.
The FourKites Perspective
The FourKites Order Twin measures fill rate in real time at the order, line-item, and delivery level. The Inventory Twin provides the forward-looking view: based on current positions and inbound shipment ETAs, what is your projected fill rate for next week's commitments? This predictive capability converts fill rate from a backward-looking metric into a forward-looking planning tool.