How to Handle Back Orders in OMS

Managing back orders is a critical component of efficient order fulfillment. A well-structured back order process ensures customer satisfaction even when inventory is temporarily unavailable.

What Is a Back Order?

A back order occurs when a customer places an order for a product that is currently out of stock but will be fulfilled once the stock is replenished. Instead of canceling the sale, the business commits to delivering the item at a later date.

In BetterCommerce OMS, back orders are tracked separately and follow a workflow similar to standard orders but with specific inventory and fulfillment rules.

When Do Back Orders Happen?

Back orders typically occur in scenarios such as:

• High demand for popular products
• Supply chain delays
• Pre-orders before stock availability
• Inaccurate stock forecasting or replenishment planning

Back Order Workflow in OMS

1. Order Placement
   Customers place orders through any channel (web, retail, etc.). The system identifies items not available in stock.

2. Order Classification
   Such orders are categorized under the BackOrder tab in the OMS dashboard.

3. Stock Reservation & Tracking
   Back orders are held in a queue until the inventory is replenished. These orders are visible and trackable by order number, product, and customer details.

4. Inventory Replenishment
   Once the stock is received (via PO/GRN), the OMS automatically triggers allocation against pending back orders based on predefined rules (FIFO, priority customers, etc.).

5. Fulfillment Steps
   Back orders move through the same flow as standard orders:

Pick → Pack → Awaiting Shipment → Dispatched

How to Handle Back Orders Effectively

• Enable Back Order Policy
  Define clear rules in your OMS for which SKUs are allowed to be back ordered and under what conditions.

• Set Customer Expectations
  Communicate estimated delivery timelines during checkout or via confirmation emails.

• Prioritize Fulfillment
  Use OMS rules to prioritize back orders once inventory arrives. Prioritize based on:

• Order date

• Customer tier

• Order value

• Monitor Replenishment Schedules
  Align with your suppliers and monitor incoming stock to ensure timely fulfillment of back orders.

• Track and Report
  Use OMS dashboards and filters to view all pending back orders and track performance metrics (e.g., fulfillment lead time, cancellations, etc.).

Benefits of Managing Back Orders Well

• Saves lost sales opportunities
• Enhances customer trust and retention
• Ensures demand is captured even when inventory is low
• Helps in better forecasting and planning

Note

Make sure to regularly review the BackOrder tab in the OMS and communicate closely with your purchasing team to align stock updates with pending order fulfillment.