![]() Increase in order velocity during the holiday season due to which the system doesn’t get updated at the required frequency.īusinesses handle backorder in two different ways,.So when the orders come in, warehouse staff cannot find the items in the warehousing. Inventory misplacement inside the warehouse.Offline billing of products may not be updated in the inventory on time.Again system not kept up to date will keep reporting incorrect available inventory causing extra orders. Damaged products which cannot be further counted in inventory.While actual stock in the warehouse cannot be dispatched due to expiry date having passed. This causes available inventory counts to become inflated. Products with an expired shelf life and that information not updated in the system.This is especially true when selling through multiple channels and keeping a central inventory across channels. Delayed inventory sync causing out of stock orders.System outage issue wherein the inventory doesn’t get updated at required interval which causes extra orders to come in.Inventory miscount at time of stock inwarding, which can be a result of human error.So now, we are stuck with a question here, what causes backorders? Most likely causes for backorders In some scenarios businesses have to deal with backorders when inventory goes out of stock and somehow orders still get placed. At the end of this blog we will talk about a brand that has majorly benefitted from backordering during pre-launch. Backordering is a process where retailers/suppliers take orders for products which are not in stock. ![]() This needs careful planning though to ensure the backorders can be timely fulfilled. This is the point where few suppliers choose to enable backorders feature when there is an increase in demand. ![]() But what if the demand of a particular product increases and you go out of stock? Customers will buy from your competitors and you will lose the sales due to failing to reorder the products on time. If you have answers for these questions, well, you know how to have control over your inventory. Being a retailer, what do you do when you go out of stock? What do you do when there is a high demand for a product with only few units of stock in hand? What do you do when there is a sudden increase in backlogs? ![]()
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