What is Fill Rate, and How Can You Improve It?

What is a good fill rate percentage?

85-95% is reasonable, but aim for 97-99% to maximize customer satisfaction.

How often should I monitor fill rate?

Check your fill rate weekly or monthly to quickly catch any declines that require intervention.

What impacts order lead time?

Factors like inventory availability, supply chain efficiency, and fulfillment workload affect how quickly orders ship.

How can I tell if my inventory is too high or too low?

Signs of excess inventory include increasing storage costs and expiration/spoilage. Stockouts and order delays indicate insufficient inventory.

What is the cost of a low fill rate?

Consequences include lost sales, poor customer experience, reputational damage, and higher overhead from compensation costs.

Should I handle fulfillment in-house or use a 3PL?

Third-party logistics (3PL) providers have expertise and infrastructure to improve shipping speed and accuracy.

How can forecasting demand reduce stockouts?

Analyzing past sales patterns and market trends helps predict future inventory needs more precisely.

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