Measures the percentage of orders that cannot be filled on time due to stock shortages.

What it Measures ?

Shows how often orders can’t be fulfilled on time.

Relevant StakeHolders 

Customer Service Head, Supply Planner

In-depth Use Case / Real-world Example

A company manufacturing electronic gadgets calculates Backorder Rate by tracking the percentage of orders that are delayed or cannot be fulfilled due to stock shortages. For example, if 1000 orders are placed but only 950 are filled on time, the Backorder Rate is 5%. Reducing this rate is critical for maintaining customer satisfaction and operational efficiency.