Backorder Rate – Definition, Berechnung & Benchmarks

What is the Backorder Rate?

Backorder rate indicates how many orders cannot be fulfilled immediately and must be delivered at a later time.

Formula

(Backorders ÷ total orders) × 100 

Example

50 out of 1,000 orders cannot be fulfilled immediately

→ Backorder rate = 5%

Benchmarks

• < 2% → good
• 2–5% → critical
• > 5% → problematic
  
  
  

Significance

A high backorder rate leads to:

• poor customer experience
• increased operational effort
• revenue losses

Causes of poor Performance

• inaccurate forecasts
• insufficient inventory
• supply issues
  
  
  

Optimization

• better replenishment planning
• adjust safety stock
• supplier management
  
  
  

Typical Mistakes

 👉 Backorders are often underestimated because they become visible with a delay. 

Relation to other KPIs

• fill rate
• days of inventory
• forecast accuracy
  
  
  

Practical Example

Reduction from 6% to 1.5%:

→ significantly higher customer satisfaction

❓ FAQ

Conclusion

The backorder rate is a clear indicator of issues in planning and inventory management.