Percentage of Backorder Dollars

Benchmarking Report

Percentage of Backorder Dollars

This PDF report includes benchmarking data (in a visual, chart-based format), an comprehensive KPI definition, characteristics of high performers and technical details on measuring Percentage of Backorder Dollars. Purchase and download this easy-to-understand, presentation-ready report immediately to compare performance levels, set attainable performance targets, and push towards best-in-class performance for this KPI.


What is Percentage of Backorder Dollars?

The total dollar value of orders delayed in shipment due to the company being out of stock divided by the total dollar value of orders placed over the same period of time, as a percentage.

Why should Percentage of Backorder Dollars be measured?

Percentage of Backorder Dollars is an indicator of how well the company stocks products that are in demand from its customers. A high value for this KPI indicates that the company has inefficient demand planning and forecasting, poor inventory management, sub-par vendor management methods or inventory shrinkage issues. Low performers for this KPI not only experience slower order cycle times, but they also risk a dissatisfied customer base. These dissatisfied customers can lead to lost revenue to due attrition as well as lost revenue that stems from cancelling orders that are currently on backorder.


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