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What is Order Fill Rate and Why Should You Care

The order fill rate is one such metric that you need to pay attention to. We’ll cover what this term means and why it matters to your business. Then we’ll see how you can calculate it. Finally, we’ll review some measures that you can take to improve your order fill rate now.

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What is Order Fill Rate and Why Should You Care

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  1. WHAT IS ORDER FILL RATE AND WHY SHOULD YOU CARE?

  2. Wholesale or distribution business Metrics that you can apply to your business to assess your relative performance

  3. Usual profit and cash flow ratios Judge just how efficiently your business is doing with inventory management Pay attention to the order fill rate

  4. WHAT IS ORDER FILL RATE?

  5. The order fill rate simply refers to the percentage of customer orders that are immediately fulfilled by available stock

  6. No standard or agreed-upon measure of order fill rate Companies use different ways of calculating order fill rate according to their needs

  7. HOW DO YOU CALCULATE ORDER FILL RATE?

  8. You can calculate fill rates for line items, SKU or cases for individual invoices. In addition, you can also calculate them across invoices For the individual invoices, the case fill rate of 87.5% for invoice 1 and 96.6% for invoice 2 are calculated across SKUs Fill rate is 60% for invoice 1 50%for invoice 2

  9. WHY IS ORDER FILL RATE IMPORTANT?

  10. Meet customer demand Avoid stock-outs Forecasting demand accurately Replenishing your inventory on time Sufficient safety stock Fulfill customer orders immediately

  11. High fill rate may also mask an overstocked scenario Low order fill rate is a sign that you need to get your demand forecasting and purchasing strategy in order

  12. HOW CAN YOU IMPROVE YOUR ORDER FILL RATE?

  13. Invest in Real-Time Stock Information A Give sales representatives the tools and information to keep them informed about your inventory date? Better still, the stock levels should be updated in real-time by using inventory management software

  14. Checking your real-time stock levels via EMERGE App, your salesperson sees that San Marzano tomatoes are out of stock and back ordered for delivery in a month’s time from Italy

  15. Improve Your Sales Forecasting and Purchasing Patterns B Historical data is immensely useful when forecasting sales for particular products. The more historical data the better, so get about 3 to 5 years worth

  16. Retail customers find that sales of baby nappies and beer spike in the countdown to Super Bowl

  17. Offer Alternatives and Substitutes C Stores don’t want customers to see gaping holes in shelf space or an “out of stock”.Customers will simply bring their purchases somewhere else

  18. Offer alternatives and substitutes for products that are out of stock or face a long delivery cycle.

  19. The RATIO may help you to investigate other areas of your business or workflow so that you can improve your order fill rate READ THE ENTIRE BLOG https://emergeapp.net/wholesale-business/what-is-order-fill-rate-and-why-wholesalers-should-care/

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