- Do you find yourself spending too much time managing backorders?
- Are mistakes and delays making it harder to keep your customers happy?
- If your answer is “yes,” then it’s time to consider automating the process.
The Problems with Manual Backorder Management
Many retailers, wholesalers, and manufacturers continue to rely on manual processes for managing backorders, which are often slow, prone to mistakes and lack the ability to provide real-time updates. This makes it difficult to track inventory, process orders efficiently and manage stock transfers – leading to delays, stockouts, lost revenue and customer dissatisfaction. Time and resources are frequently wasted correcting errors and redistributing stock to fulfill orders.
A study by McKinsey (2022) revealed that businesses that automate inventory and backorder management see a 25% improvement in customer satisfaction due to fewer stockouts and faster deliveries – Source: McKinsey & Company, 2022 Report on Supply Chain Digital Transformation.
Without accurate, real-time insight into inventory levels and demand, businesses risk both overstocking and running out of products, resulting in unnecessary costs and missed sales opportunities. This creates a burden on both time and finances. Fortunately, a more effective solution exists.
Aberdeen Group found that companies using manual systems to manage inventory and backorders saw 11% higher operational costs and 15% longer order fulfillment times compared to those using automated systems – Source: Aberdeen Group, 2022 Report on Inventory and Backorder Management.
How Automation Can Help
Automation offers a solution to these issues, transforming how businesses manage backorders and inventory.
Here’s how automating backorder management improves your business:
- Real-Time Order Tracking – Automated systems keep track of all backorders in one place, updating them in real time. This way, you’ll always know where an order stands in the backorder management process, and your customers will get accurate updates.
- Better Inventory Management – Automation helps you keep a close watch on your stock levels, ensuring you avoid overstocking or running out of items, which is crucial for effective backorder management. It can even automatically reorder stock or transfer it between locations as needed to fulfill backorders.
- Cutting Costs – Automation takes over repetitive tasks like tracking orders, reordering stock and checking inventory, reducing the manual effort required for backorder management. This not only lowers your overall costs but also minimises costly mistakes caused by manual errors.
- Fewer Mistakes – Manual processes often lead to mistakes such as entering incorrect data, missing orders or mismanaging stock. Automating backorder management reduces these errors by accurately tracking and updating orders and stock levels, making the entire process more reliable.
Gartner (2023) reports that businesses that implement automation in inventory and order management processes reduce errors by up to 50% and improve delivery times by 30% – Source: Gartner Supply Chain Automation Report, 2023.
- Data Insights – Automation doesn’t just help with today’s orders – it also tracks backorder data over time. These insights enable you to identify trends in backorder management, such as seasonal demand changes or product popularity, so you can plan more effectively and avoid stock shortages.
- Clear Audit Trails – Every action taken in the system is recorded, giving you a detailed history of each product’s journey through the backorder management process. This can help resolve disputes or verify the accuracy of your procedures.
According to Statista (2022), companies with automated systems in place have a 23% higher rate of order visibility and accuracy, leading to fewer delays and stockouts – Source: Statista 2022 Global Supply Chain Management Report.
- Faster Processes – Automated systems work faster than manual processes, improving the speed of your backorder management and reducing delays, allowing your team to focus on more important tasks.
- Detailed Reporting – Automation collects data at every step, enabling you to generate reports on backorders, stock levels and delivery schedules. This gives you a clearer picture of your business and helps you make more informed decisions related to backorder management.
How Stok.ly Cloud ERP Can Help with Backorder Management
With Stok.ly Cloud ERP, you’re not just automating backorder management, you’re integrating key business functions such as multi-channel eCommerce, warehouse operations, order handling, finance and reporting. The system automates stock transfers between locations based on inventory levels and business rules, making the process seamless.
This level of automation saves time, reduces errors and provides real-time insights for smarter decision-making. You’ll be able to manage stock effectively, prevent costly mistakes and ensure customers receive their orders on time.
Efficiency and responsiveness are vital for your business. Automating backorder management frees you from manual tasks, allowing you to focus on growth.
With the right system, you can guarantee stock is always where it needs to be, keeping customers satisfied and operations smooth.
Ready to Automate your Backorder Management?
By optimising backorder management, you avoid delays, reduce costs and boost customer satisfaction, setting your business up for long-term success.