A pending order is an order for a product or service that cannot be fulfilled immediately due to a lack of supply.
Backorders give insight into the company’s inventory management. A manageable pending order with a short lead time is a net plus, but a large pending order with a longer wait time can be problematic.
Companies with manageable backorders tend to have high demand, while those that can’t keep up may lose customers.
“However, backorders allow a company to maintain lower inventory levels, reduce the risk of obsolescence and theft, and may lead to natural marketing of its high-demand product.
Popular products that are in high demand (such as new generation game consoles or new mobile phone models) may be delayed.
Delivery Duty Paid (DDP) is a delivery contract under which the seller assumes full responsibility for transporting the goods until they reach the agreed destination.
Distribution Management manages the supply chain for the firm, from vendors and suppliers to the manufacturer and point of sale, including packaging, inventory, warehousing and logistics.
In a supply chain, a distribution network is an interconnected group of storage facilities and transportation systems that receive stocks of goods and then deliver them to customers.
Free carrier is a trade term that requires the seller of goods to deliver those goods to a specified airport, shipping terminal, warehouse, or other carrier location specified by the buyer.
Supply chain management (SCM) is a centralized management of the flow of goods and services and includes all processes that turn raw materials into final products.