Backlog and backorder are both common business terms, but they refer to different types of situations. A backlog is the accumulation of orders that have not been filled yet. It’s a situation where demand exceeds the capacity of the supplier. While it may be caused by supply shortages or production delays, it can also be the result of a sudden spike in orders.
On the other hand, a backorder occurs when a customer places an order for an item that is currently out of stock. The supplier then puts the item on backorder, meaning they will send the item to the customer as soon as it becomes available again.
In both cases, customers may experience delays in shipping times, so it’s important to communicate early and often to keep them informed and satisfied. By understanding the differences between these two terms, businesses can plan ahead and provide the best possible service to their customers.