Fill Rate
The fill rate is the percentage of order items that the picking operation actually found. In other words, it’s a measure of how well the inventory management system is keeping track of stock levels.
- A high fill rate indicates that the inventory system is accurate and up-to-date.
- While a low fill rate suggests that there are problems with the system.
Fill rates are important because they directly impact customer satisfaction. If an order is not filled completely, the customer may be unhappy and choose to take their business elsewhere. In addition, a low fill rate can also lead to higher costs for the company, since additional staff may need to be hired to search for missing items or to deal with customer complaints.
Fill rates can be improved by implementing better inventory management practices, such as regular stocktaking and updating the system whenever items are added or removed from stock. In addition, it’s important to provide employees with accurate and up-to-date information about where items are located within the warehouse.
By improving the fill rate, businesses can improve customer satisfaction and reduce their costs.
Related Links
Fill rate definition (supply chain) – Lokad
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