A backorder is a type of inventory management strategy in which you purchase materials with an expected delivery date that has already passed. Your organization may need to use backorder as part of its supply chain operations when there is an unexpected demand for a certain product or item that cannot be immediately filled. When backordering occurs, customers who request the materials must wait until they can be supplied, leading to additional delays and potential customer dissatisfaction. It’s important to understand how backorder works before choosing it as a business strategy, as there are several factors to consider including manufacturer lead times, supplier availability, and quality control measures from both sides.