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.