Inventory management is not an easy job. You would know that all too well. One moment a product can be extremely popular, while next month you aren’t delivering any of this product. Thanks to your experience, knowledge and analysis, you can predict certain patterns. However, perfectly managing your inventory is almost impossible. Therefore, you may recognize the situation in which an order comes in but your inventory is inadequate. In that case, using backorders is the right solution to help you on your way.
What are backorders? What benefits do they bring? In this sixth blog of the series E-fulfilment, we discuss the use of the functionality backorders.
An empty warehouse calls for backorders
Backorders are orders of your customer that cannot be delivered because of a shortage in your warehouse. When an order is confirmed, and one or more items aren’t in your inventory, it means you must postpone the delivery until these goods have entered your warehouse again. Using backorders, you can then complete the order quickly and efficiently. Thanks to this new functionality the incoming items aren’t stored in your warehouse but are immediately available for picking. As a result, you can deliver the items to the right address as fast as possible and raise your customer satisfaction.
Backorders in your warehouse process
When an order is received, a notification can pop up that tells you there is not enough stock in place to complete this order. Using backorders, the order will automatically be set on hold. When the items are received in your warehouse, a check is done to see if any backorders are open for these items. When there are, there is the possibility to continue processing the items or to immediately transport the goods to a dock or an expedition floor.
Full or part delivery
In the use of backorders there are two possibilities when implementing the functionality:
Full delivery: the complete order will be put on hold when the inventory is inadequate. When the missing items are received, the complete order will be delivered.
Part delivery: split the order in two. The missing items of the order are extracted and placed in a new order. This document is an exact copy in which we change the customer reference using a SUFFIX (-01). When the items are received this order will be delivered to complete the order.
Backorders in your WMS
Are you interested in how you can apply backorders in your system? Keep track of our blog. Next week, our consultant Brian will explain step-by-step how to start using this functionality in your own WMS.
This article was written by Brian and Herald Van Middendorp from our partner Boltrics