Fill Rate Meaning
The percentage of ordered quantity actually delivered in full, the core supply chain service-level metric where leading FMCG brands target 98%+ to maintain distributor trust.
Full definition
| Definition | Share of ordered quantity actually supplied |
|---|---|
| Formula | Quantity supplied / quantity ordered x 100 |
| Measures | Completeness only, not timing |
| Contrast with OTIF | OTIF requires completeness AND on-time delivery |
| Line fill rate | Share of order lines supplied in full |
| Case fill rate | Share of ordered units supplied |
| Inbound fill rate | What the brand supplied against what you indented |
| Why track inbound separately | It caps your own achievable OTIF |
Fill rate measures how completely a distributor or brand meets its downstream orders. The standard formula is: (quantity delivered / quantity ordered) x 100. A fill rate of 97% means that for every 100 units ordered across the network, 97 were actually shipped on time and in full. Chronically low fill rates erode distributor trust and push retailers to stock competitor brands.
Fill rate is a richer metric than simple stock-out counts because it weights by quantity. A single SKU being out of stock on one order is very different from every SKU shortfalling 20%. Leading FMCG brands target 98%+ fill rate as part of their customer service level agreement.
Fill rate should always be read alongside line item fill rate, the stricter version that penalizes even partial fulfillment of any single SKU.
Real-world example
A distributor who receives orders for 10,000 cases and ships 9,700 has a fill rate of 97%.
Fill Rate: common questions
The questions people ask most often about fill rate in Indian distribution.
The share of ordered quantity actually supplied, expressed as a percentage. It measures completeness only and says nothing about whether the delivery arrived on time.
Fill rate measures completeness; on-time delivery measures timing. OTIF requires both conditions simultaneously, so it is always the lowest of the three and is the closest approximation of what the customer experienced.
Line fill rate is the share of order lines supplied in full, so a line short by one unit fails entirely. Case fill rate is the share of ordered units supplied, so the same line scores highly. Line fill is stricter and more diagnostic.
Because a distributor cannot ship in full what the brand did not send. If the company fill rate is 90%, your achievable OTIF is capped near that regardless of local execution, and mixing the two means optimising the wrong thing.
Most often inventory accuracy: the system shows stock that the godown does not have, so the order is short before a vehicle is loaded. Upstream shortfall and allocation decisions during stock-outs are the next two causes.
Go deeper
Guides that use this term
The definition is the starting point. These walk through what it means for a working distribution business in India.
Where it applies
Applicable industries
This term is relevant across the following SpireStock-supported industries.
How SpireStock handles it
Related SpireStock features
The concepts described above are implemented end-to-end in these product modules.
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