Business Terms Dictionary

Backorder

An unfilled customer order or commitment that arises when there is insufficient inventory to meet immediate or past-due demand for an item. © Copyright 2025 Demand Driven Institute. Used with permission.

Why is it important?


Backorders indicate that a product is out of stock and cannot be delivered as promised, often leading to delays and potential customer dissatisfaction.


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ForgeFlow Cloud ERP helps you reduce backorders by optimizing inventory levels, providing real-time demand insights, and ensuring timely replenishments. With demand-driven planning, you can keep inventory aligned with customer demand, improving fulfillment rates and customer satisfaction.
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