How to Calculate Fill Rates & The Role of OTIF for Improvement

adam • September 3, 2022

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How to Calculate Fill Rates & The Role of OTIF for Improvement

There are many measures of success in logistics and supply chain, but one of the most important factors for shippers is on-time-in-full, or OTIF. This industry metric is used like a report card to analyze whether loads that get delivered are accurate according to the right quantity of the load and on-time when its supposed to get there.

OTIF’s are usually tied to company performance and consumer satisfaction, but questions remain about how to quantify this benchmark.

This article will explore the importance of OTIF’s in the logistics industry. It will describe what in-full or fill rates are, how to record them, and how they relate to overall freight performance.

Consumer demand for short delivery windows is shaping today’s logistics industry making it crucial for shippers and transportation providers to obtain high OTIF scores.. Companies must be able to deliver timely and accurate shipments. Read on to learn how fill rates contribute to healthy OTIF scores, and how you can bolster yours.

What Is Fill Rate, and How Do You Calculate It?

A fill rate is a measure of order fulfillment that’s often used to forecast inventory needs. It’s defined as the percentage of customer orders you can meet immediately with available stock.

A high fill rate means a higher ability to fulfill sales without backorders, lost sales, or stockouts. In contrast, a low fill rate could suggest there’s not enough stock on hand, or that it lacks organization.

Types of Fill Rates

Order Fill Rate

Order fill rate is the percentage of orders that have been completely fulfilled without running out of inventory.

Warehouse Fill Rate

The warehouse fill rate is similar to the order fill rate, but applied specifically to warehouse efficiency. It measures the proportion of orders that a warehouse is able to fulfill out of the total number of customer orders.

Line Fill Rate

Line fill rate is the percentage of individual lines in an order that are fulfilled, versus the total order.

Case Fill Rate

The case fill rate refers to the initial number of product cases that are shipped, out of the total number of cases ordered.

Vendor Fill Rate

Finally, the vendor fill rate assesses how many vendors have completed order shipments as a percentage of all vendors.

How is Fill Rate Calculated?

To determine the fill rate formula, divide the number of orders that have been shipped by the total number of orders received. Multiply that number by 100, and you’ve got your fill rate. Here’s the calculation, in equation format:

Fill Rate = (Shipped Orders/Total Number of Orders) x 100

For example, if you were to receive 100 orders, and fulfill 85 of them, the calculation would look like this:

(85/100) x 100 = 85%

In that situation, you would have an 85% fill rate.

Why Calculate Fill Rates?

Fill rates provide insights into your inventory management process that could go unnoticed initially through a manual audit. And a low fill rate can point to areas for improvement in your supply chain. There are a few factors that affect fill rate. Long lead times from a supplier, for example, can lower it.

Fill rates can also tell you whether stock is ordered at appropriate intervals and accurately, known as “reorder points” in the logistics industry. If workers are required to recount, repack, or wait for items to be ready, order fulfillment will be delayed and the fill rate will decrease.

What is Considered a Good Fill Rate?

Ideally, you want your fill rate to be as close to 100% as possible. A lower number indicates inefficiencies leading to stockouts, backorders, or lost sales. But beware of a fill rate above 100%, which suggests that orders are too frequent for the volume of sales.

Order Fill Rate Vs. Volume Fill Rate

There are two ways of assessing fill rates. Remember our fill rate formula above? Companies can calculate it using orders or using volumes. Let’s start with the order fill rate. For this calculation, it doesn’t matter if an order consists of one unit or twenty. Each order is counted as one unit, and the fill rate is calculated based on,the number of orders placed.

Then there’s the volume fill rate whichis calculated using the number of units in each order. For instance, say Customer A orders one unit, and Customer B orders 20 units, and your company has 10 units in stock. In that situation, you might send one unit to Customer A, but hold off on Customer B’s order until more inventory comes in. In this situation, you would have filled 50% of your customer’s orders. But you would only ship one out of 21 units, bringing your volume fill rate to a dismal 4.7%.

Which Fill Rate Should I Choose?

Either order fill rate or volume fill rate can provide important insights. The order fill rate tells companies how many customers they are sending orders to over time, while the volume fill rate summarizes how closely inventory levels match customer demand.

How To Increase Order Fill Rates

Order fill rates can be improved by forecasting customer demand, recalculating reorder points, or by using technology, like a warehouse management system to track inventory. (Or by hiring a vendor who has these capabilities.)

The Role of Fill Rates for OTIF

A fill rate makes one half of the OTIF, or On Time In Full metric.

What Is OTIF?

OTIF measures a supplier’s ability to deliver precise orders, within an agreed upon timeframe. It was developed by Walmart in 2017 to evaluate supplier performance. Ultimately, OTIF is considered a measure of success - whether a supplier delivers a correct order, to the correct location, at the correct time. Shippers want to improve their OTIF performance and how these metrics will improve their supply chain.

How Is OTIF Calculated?

At first glance, OTIF calculations would seem pretty simple. “On time” refers to on time delivery, and “in full” means the number of delivered units matches the number of ordered units. However, there is no single measurement for it, and most companies calculate OTIF in slightly different ways.

The Benefits of Improved, Proactive Fill Rate Calculations

The benefits of tracking fill rates are myriad - historical data can help track service levels, improve performance and relationships, and lower costs.

KPI Service Calculations and Formulas

There are a few KPIs related to fill rate that are important to know. We’ll outline each one here:

Delivery in Full: This is the percentage of shipped orders out of the total number of orders.
Delivery on Quality: The number of non-compliant products out of the total number of products ordered.
Delivery on Time: The number of products delivered on time out of the total number of products ordered.

Taken together, these metrics can be used to create an OTIF calculation.

Service Level Measures in Supply Chain

The next decision to make is how to measure these metrics. Usually, the “right” answer will differ from one company to the next.

Partial Credit: If a company ships 95% of an order, will that count as a 95% success rate, or is it one incorrect delivery?
On Time Delivery: Sometimes there are reasons to change a delivery date that have nothing to do with service levels. For that reason, some businesses use an adjusted date of delivery in addition to an original date.
What Constitutes a Unit: Most companies supply products at a range of prices. But what do you do if a few higher end items are late in a delivery, but the lower end items are not? Standardizing a unit of measure can help account for these differences.
When to Calculate On Time Delivery: Should you count orders once they have shipped, or once they have arrived at the customer’s location, damage-free?

Improve OTIF with the Right Partner

OTIF is a heavyweight metric in the shipping world. If you’re looking to improve OTIF compliance, boosting fill rates is going to be an important first step. It’s critical to partner with a company who understands what this entails. Contact Entourage Freight Solutions to find out how you can improve your fill rate today.

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Tariffs, Trade Policy, and the Great Freight Fallout

By Nick Terry • April 28, 2025

In 2025, trade policy is no longer something that the freight industry can leave on the back burner. Trade policy today is shaping strategy at every level. From tariff escalations and retaliatory duties to sweeping regulatory changes and targeted maritime fees, supply chain leaders are navigating a freight market in which unpredictability is the only constant. Sourcing decisions are shifting, pricing dynamics are unstable, and long-standing operational models are being rewritten in real time. This edition brings together key stories highlighting the growing pressure across logistics channels. Each development points to an industry moving fast, and often reactively, to keep pace with volatile policy decisions. Tariffs Stall US Freight Recovery as Shippers Pause Orders The recent move by the U.S. Trade Representative (USTR) to impose entrance fees on Chinese-built ships calling U.S. ports has only added to the confusion and uncertainty gripping global supply chains and freight operations. Shippers are pausing plans and slashing orders, with truckload volumes, containerized imports, and manufacturing output all showing signs of contraction. Ocean freight spot rates have collapsed: Asia-U.S. West Coast rates have fallen 61% since January to $2,050 per FEU, while East Coast rates have dropped 53.7% to $3,100 per FEU . Blank sailings are rising, with vessels leaving Asia half-empty. Amazon and Five Below are among the major retailers reducing orders from Asia. Container imports jumped 15.3% in 2024, but forecasts now predict a 20-27% decline through the summer. Exporters, particularly agriculture and forestry suppliers, are also squeezed, facing 125% retaliatory tariffs from China. Truckload and intermodal rates remain stagnant, while U.S. factory output fell sharply in March. US Apparel Importers Brace for Long-Term Volume Declines According to Trade Partnership Worldwide, a 124.1% tariff on Chinese clothing and footwear is expected to reduce U.S. apparel imports by 1.6% annually . China still accounts for 41.7% of apparel shipments, leaving limited flexibility for diversion. The American Apparel and Footwear Association (AAFA) is warning of price hikes and mounting infrastructure stress as sourcing pivots toward Vietnam, India, and Indonesia. A looming May 2 deadline for de minimis exemptions could further complicate flows and delay deliveries. Even with a temporary 90-day pause in reciprocal tariffs, the policy uncertainty already affects long-term planning. AAFA CEO Steve Lamar calls the shifting policies “chaotic,” and warned that high tariff pressure will hit both importers and U.S. manufacturers reliant on Chinese components. Port and rail capacity limitations at larger gateways are adding to concerns. Retailers now face rising costs, shrinking margins, and operational delays — all while consumer demand continues to shift rapidly. Freight Pricing Gains Lose Momentum According to the TD Cowen/AFS Freight Index, Q1 truckload rates rose 5.9% above the 2018 baseline, but are expected to decline slightly in Q2. Shippers are responding to tariff threats with aggressive front-loading and shorter-haul routes, driving per-shipment costs to three-year lows. LTL carriers remain focused on profitable lanes and high-quality freight rather than chasing volume. The index forecasts a 0.7% year-over-year increase in LTL rate per pound for Q2 , despite sustained demand softness and macro uncertainty. A key driver behind the softening spot market conditions is a shift to shorter hauls and regionalized distribution, pushing per-shipment costs to their lowest point in more than three years. This trend reflects how retailers and manufacturers are repositioning inventory in response to tariff volatility, as NRF’s Jonathan Gold and DAT analyst Dean Croke noted. Meanwhile, the LTL sector is seeing a 4% rise in fuel surcharges, offsetting lower weights and shorter hauls. With the freight market still under pressure after 26 months of contraction, optimism remains subdued as we enter the midyear period. US Truckload Freight Spot Rates Continue to Fluctuate National benchmark rates have experienced a decline across all categories. As of April 18, dry van decreased by 4 cents to $1.62, reefer by 2 cents to $1.88 , and flatbed by 3 cents to $2.16. This marked the first overall decrease since late January, signaling potential shifts in market dynamics. These changes can be attributed to factors such as tariff uncertainties and tighter capacity, especially affecting the flatbed market. Flatbed rates rely heavily on manufacturing activity in the country, which has been particularly hard-hit by the ongoing trade war with China, and to some extent, with the rest of the world. US Finalizes Tiered Fee Plan Targeting Chinese Ships The U.S. is moving forward with a revised plan to levy voyage-based fees on Chinese-owned and Chinese-built ships calling at American ports. The U.S. Trade Representative (USTR) announced the measure as part of a broader Trump administration effort to counter China’s dominance in shipbuilding and logistics while reigniting domestic ship construction and port infrastructure investment. Starting in six months, Chinese operators will be charged $50 per net ton, with an annual increase of $30 for three years . Non-Chinese carriers using Chinese-built vessels will face lower rates, beginning at $18 per ton or $120 per container, with annual increases. The USTR capped fee applications at five voyages per vessel annually, scaling back its original, more punitive per-port-call proposal after intense industry pushback. The fees are tied to findings from a USTR investigation, which concluded that China’s shipbuilding dominance — producing 29% of global fleet capacity and 70% of all container ships on order — stemmed from unfair trade practices. Exemptions apply to ships arriving empty, those in the Great Lakes or U.S. territories, and some bulk exports. LNG vessel transport restrictions will phase in over 22 years to support U.S. production. China’s largest container carrier, Cosco Shipping Lines, has sharply criticized the USTR’s plan. In a strongly worded statement, Cosco labeled the move as “discriminatory,” and warned it would disrupt global industrial and supply chain stability. Cosco denied allegations from that USTR investigation that claimed China manipulated its shipping and shipbuilding sectors to gain an unfair advantage. The carrier said it upholds “integrity, transparency, and compliance” in global competition and remains committed to ensuring the resilience of international trade. Walmart Investing $6B in Mexico, Central America Store Expansion Walmart of Mexico and Central America will invest $6 billion to open new stores across the region , reinforcing its long-term commitment to growth in Latin America. The expansion will include Bodega Aurrera, Walmart Supercenters, Sam’s Club, and Walmart Express formats, building on a robust network of 3,200 stores across all 32 Mexican states. This latest move echoes Walmart’s earlier $1.3 billion investment in 2016 for regional distribution and operational upgrades. The retailer entered the Mexican market in 1991 with a Sam’s Club in Mexico City. In a statement, Walmart said the new expansion reflects confidence in the region’s economic potential and consumer demand. Globally, Walmart continues to invest aggressively in infrastructure and store development. The company has pledged about $4.5 billion for its Canadian operations and $1.3 billion in Chile to build 70 new stores and a distribution center. In the U.S., Walmart is executing a five-year plan to build or convert more than 150 stores while modernizing 650 existing locations under its “Store of the Future” initiative. Experience Seamless Shipping with Entourage Freight Solutions Entourage Freight Solutions believes in total transparency in the shipping process. That is why we invest in tech solutions that track every shipment extensively, monitor every driver, and extract every bit of efficiency without sacrificing quality. Our state-of-the-art platform utilizes cloud-based GPS tracking to keep you informed, reroutes shipments on the fly to avoid delays, and even responds to real-time market changes to ensure you receive your shipment on time and as soon as possible. Our Services Full Truck Load (FTL): When you need a truck all to yourself. Less-Than-Truckload (LTL): Efficient solutions for multi-stop shipments or combining smaller loads to save on costs. Refrigerated Trucking: Keeping your temperature-sensitive products fresh and safe. Cross-Docking: Strategically located facilities in Shelby, Ohio, Cedar Rapids, Iowa, and Romulus, Michigan, for streamlined consolidation, storage, and distribution. Ready to experience a new level of service and control in your freight shipping? Request a quote today to see how Entourage Freight Solutions can help with your freight movement and other supply chain needs.