A backorder is when a customer places an order for a product or service that is currently out of stock. This means the desired item isn’t available for immediate delivery, but it can be delivered at a future date. Backorders are an integral part of the supply chain process: they allow businesses to maintain demand and encourage customers to keep coming back in anticipation of new shipments. By managing these orders in an efficient and organized way, companies can balance inventory and ensure customers have a consistent experience.