Comprehensive Definition
A backorder occurs when a customer places an order for a product that is not currently in stock, but the company accepts to process it with the promise of delivery as soon as the item is restocked. It's a way to avoid losing the sale, but it requires flawless logistics to avoid frustrating the customer.
The Logical Flow in WMS
Managing backorders manually carries a high risk of error. The WMS automates this flow:
Logical Reservation
As soon as the order comes in, the system reserves the item "virtually".
Immediate Cross-Docking
The moment the supplier delivers the product to the warehouse, the WMS alerts the receiver: "This item doesn't go to the shelf; it goes directly to the packing table to fulfill the pending order".
Proactive Communication
Integration with CRM to keep the customer informed about the expected delivery date.