Backorder Analysis Advantages
The most significant advantages of a frequent Backorder Analysis are:
A. Parts Manager can effectively correct discrepancies and re-educate inventory control personnel without devoting most of his time to all the routine functions of inventory control.
B. Reduced internal paper work and man-hours devoted to processing emergency orders.
C. Greater profits and/or lower selling prices because of fewer special handling charges and less premium transportation.
D. Increased customer satisfaction -- less downtime and waiting for backordered parts.
E Increased parts sales -- decreased competitive parts sales. (In most localities there is a good possibility customers will be able to purchase from a competitive parts vendor some or all of the items dealers cannot immediately offer. No longer are customers compelled to have dealer’s backorder items for them because they are the only source for parts.) Your customers and your Service Department judge parts service by what cannot be supplied immediately from