![]() This, in turn, has the potential to negatively affect your business through customer dissatisfaction and bad word-of-mouth. If prepayment is taken prior to the order being filled and your supplier is unable to fulfil the order or there are further delays, you risk the time and expense of refunding payments. However, with backorders, there is no guarantee that customers will not cancel the order and your business is left holding the stock purchased to fulfil these backorders. Inventory backorders can occur when products have sold out due to times of unforeseen high demand and all your safety stock has sold.Ĭustomers may even be happy to shop for your products knowing you don’t have the stock on hand - for some businesses, backorders are viewed as guaranteed sales, particularly if you have a loyal customer base that is willing to wait for your products. What is an inventory backorder?Īn inventory backorder is when a customer places an order or makes a purchase for inventory stock, that is not yet available. Stockouts in many cases lead to lost sales and customer dissatisfaction but what if there is a customer order that cannot be immediately filled but for which the customer is prepared to wait? Or perhaps you can ship part of a large order to customers that prefer to receive the available in-stock items and are happy to wait for the balance of stock. ![]() UK Manufacturing Report Sector Performance 2020-2021Įffective inventory control is a balancing act between reducing the costs of holding too much inventory stock with the need to maintain enough stock to meet customer demand.Manufacturing Productivity Guide Learn About Productivity in Manufacturing and How Gains Are Unlocked.Supply Chain Management Guide Learn about supply chain management for modern SMEs.The Modern Manufacturing Guide NEW Practical advice for small & medium enterprises.Inventory Accounting Guide NEW A video series for advisors and accountants.Inventory Management Guide Understand the basic concepts behind inventory management.Support Centre Browse our extensive documentation to find the answer you need.Inventory Calculators NEW Handy live calculators & formulas.Inventory Blog Keep up with the latest business trends and best practices. ![]() Unleashed Summit A virtual learning summit with industry keynote speakers and thought leadership sessions Learn how Unleashed helps businesses around the world power their inventory management.Health Supplement & Nutraceutical Manufacturing Software. ![]()
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