Backorder

A Backorder occurs when a supplier cannot fulfill an order due to insufficient inventory, resulting in delayed delivery. Backorders can disrupt operations and impact customer satisfaction if not managed effectively.

Common causes of backorders include:

• Unexpected demand spikes
• Production delays
• Supply chain disruptions
• Inventory mismanagement

Procurement teams use inventory management systems and supplier collaboration tools to minimize backorders by improving demand forecasting, maintaining safety stock levels, and diversifying supply sources.