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Conquering Backorder Challenges: Insights from a Scheduler’s Viewpoint

Ritesh Thakur
Supply Chain Consulting
Georgia, USA

Riteshthakur.85@gmail.com

Abstract—This article delves into the various challenges associated with backorder processing, particularly highlighting the critical issue of inventory constraints that businesses face in today's competitive marketplace. For companies striving for success, prioritizing customer satisfaction is essential, and effectively managing back orders is a key component of that process.

We will explore strategies to minimize the occurrence of back orders while ensuring that customer commitments remain reliable and stable. In an ever-evolving landscape of supply and demand, it is crucial to keep customer order commitments updated. Should any significant deviations arise, timely and clear communication with customers is paramount to maintaining their trust and satisfaction.

The overarching goal of daily backorder processing is to deliver on the promises made to customers as accurately and realistically as possible. Therefore, we will outline how the incorporation of Enterprise Resource Planning (ERP) capabilities, along with other advanced technologies, can enhance backorder processing. Specifically, we will discuss how Advanced Available-to-Promise (ATP) functionality allows schedulers to meet customer requirements more effectively. By leveraging these technological advancements, businesses can not only fulfill customer orders on time but also solidify their reliability and strengthen trust between the company and its customers.

Keywords—Backorder Processing, SAP Advanced ATP, Demand/Supply dynamics, inventory stock outs,

Order Commitment, BOP, order tracking, Order fulfillment, SAP BOP Confirmation strategies