Fill rate

Definition

The share of ordered lines a house ships complete first time, the line-fill form of the measure.

Why It Matters

This is the number contractors actually choose on, because a crew standing still costs more than the part does. It is also the most expensive number in the business, since every point of it is inventory that is not turning. Two houses can report the same rate for opposite reasons, one because its buying is disciplined and one because it has never written anything off, and only the aging schedule tells them apart. Ask how it is measured, on which lines, and what it cost to hold.