Percentage of Backorder Lines
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 Lines. 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 Lines?
The total number of customer order lines delayed in a shipment due to the company being out of stock divided by the total number of order lines processed over the same period of time, as a percentage.
Why should Percentage of Backorder Lines be measured?
Percentage of Backorder Lines 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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