Back orders update#

Back orders update#

This means that whenever there is a change in stock levels, your system will make note of this change and update automatically. When choosing a modern warehouse management system, make sure to get a system that gives real-time data. Having a good management system in place also decreases the opportunity for imprecise inventory data to occur because your modern system should accurately reconcile your inventory without question.ģ. Your reorder points will be crystal clear by the demand of your products because your inventory data will be shown in real-time. With an up-to-date data-driven inventory management system in place, you won’t have to guess when you need to reorder inventory or how much you need to order. Having a modern warehouse management system will keep you from manually having to record inventory data and it is also able to keep up with the volume of your business. Have a Modern Warehouse Management System Buffer stock can ultimately affect your bottom line negatively if you’re not careful, so be sure to communicate the necessary information to reduce this issue.Ģ. Keeping an open line of communication helps to avoid any inflation or deflation in orders and will prevent you from having buffer stock, or an excess of stock. It is very critical to know how much you’re selling and how fast you’re selling it, not just one or the other. By communicating inventory stock levels as well as velocity times (how fast your products are selling), this will help to keep your stock levels steady. Thorough communication within your supply chain is extremely important and will greatly reduce the need for backorders. Communicate Openly with Your Fulfillment Partners To avoid any hiccups in your supply chain with backorders, follow these steps:ġ. Wait times can be anywhere from a few days to several weeks, depending on the reason for the backorder. This process allows your customers to purchase a product now and receive it later, when available. A backorder occurs when the retailer must make a request to the supplier or manufacturer for when the item becomes available again. This is different from a stock out (when an item isn’t available in your warehouse). While backorders are a good problem to have (to an extent), you want to avoid them at all costs to maintain customer satisfaction and brand loyalty.īackorder defined: What is a backorder? What does Back Order Mean?Ī backorder refers to items that are currently out of stock but promised to ship once available. That same anger and frustration could cause a customer to purchase similar products elsewhere or cancel their order altogether.

Having to wait on a product can easily turn an excited customer into a frustrated, angry customer rather quickly.

Backordered items mean that your customers will have to wait longer (in addition to regular processing and shipping times) because the product they ordered is currently out of stock. While this is somewhat good news for your company (because it is a sign that your products are in high demand), it is bad news for your customers. Picture this: You have this highly praised product that is literally selling off the shelves! So much so that you keep selling right through your inventory each time you reup.