When consumer demand for a product outpaces supply, the business must fill the order after the item is restocked. This is known as a backorder. Although backorders enable businesses to maintain sales in the face of stockouts, extended delays may have a detrimental effect on customer satisfaction. Accurate demand forecasting, quick supply chain coordination, and open customer communication are necessary for efficient backorder management. Backorder reports can be used by businesses to spot reoccurring stockout trends and modify inventory control procedures appropriately.
