Which metric is commonly used to assess supplier performance in terms of fulfilling orders?

• A. On-time delivery
• B. Fill rate
• C. Defect rate
• D. Price competitiveness

Answer: (B)

The key measure here is how completely an order is satisfied by the supplier. Fill rate directly tracks the proportion of items or lines that are delivered as requested, reflecting the supplier’s ability to fulfill the exact quantities and items you placed on the order. This matters most for fulfilling orders because it captures completeness, not just timing or cost.

On-time delivery looks at whether the shipment arrives when it was promised, but it doesn’t tell you if all the items or quantities were provided. It’s possible to be punctual yet short on items, which means the order isn’t truly fulfilled. Defect rate focuses on quality issues with the items themselves, not whether the full order was supplied. Price competitiveness concerns cost, not whether the order was fully met.

So, fill rate is the best answer because it directly measures the success of delivering the full requested quantity, which is the core aspect of fulfilling orders. For example, ordering 100 units and receiving 90 in the shipment gives a 90% fill rate, signaling incomplete fulfillment that needs attention.