Service Level vs Fill Rate

Businessman pointing at electronic document for optimizing fill rate and service level

We are often asked what the difference is between these two important performance metrics for inventory planning. While they are both important for measuring how successful a business is in meeting demand, their meaning is very different.  If not understood and incorporated into the strategic inventory planning process, inventory will be inefficiently allocated resulting in lower customer service and higher carrying costs.  We’ve illustrated the difference in this 4 minute recording using Microsoft Excel.

 

 

 

Smart Operational Analytics automatically calculates historical service levels & fill rates across any item.  To see how you calculate these and other operational metrics including inventory turns, supplier performance, and more register below to watch a five minute demonstration.  The demo will show how our cloud platform continuously calculates and reports these metrics across thousands of items helping you identify opportunities for service level improvement and inventory reduction.

 

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