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    Backorder Management

    Backorder management is the process of effectively handling a situation in which a customer orders a product that is out of stock.

    What Is Backorder Management?

    Products can be out of stock for a number of reasons, including poor inventory management, supply chain issues, materials issues, or hyper-demand. When customers place orders for items that are out of stock, a brand or retailer must have strong backorder management to keep that customer satisfied despite delays. Backorder management involves two primary areas of focus: back-end inventory management and front-end customer service. Many businesses use inventory management systems to automate their product volumes and avoid stockouts. These technologies can flag when volumes are low and even replenish orders to meet demand. On the front-end, brands need strong customer service to continue to build customer loyalty when the products they purchase are backordered.

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