Plain-language questions
Ask for backorder rate per month, customer or product in the SQL Explorer with AI. The AI writes the SQL, you see the query and run it yourself; the AI only receives metadata.
KPI · Inventory, purchasing and production
Backorder rate: formula and example.
Backorder rate is the share of orders that cannot be fulfilled from stock immediately and are therefore on back order. A backorder arises when a customer orders an item that is out of stock or short. The figure shows how much demand is waiting on purchasing or production.
Backorder rate formula
Orders placed on backorder ÷ total orders in the period × 100%
Worked example
In April 2026 Acme Groothandel received 4,000 orders. Of those, 180 went on back order because one or more items were missing. The backorder rate is 180 ÷ 4,000 × 100% = 4.5%.
Fictitious figures for Acme Groothandel, a sample wholesaler.
How to read this KPI
A lower rate means you ship straight away more often. Look at the value and age of open backorders as well as the count: old backorders are more likely to be cancelled. Compare with your own trend and find out which products and suppliers cause the most backorders.
Pitfalls with backorder rate
- Using only the current order status, so orders that have since shipped drop out of historical figures.
- Counting deliberately scheduled future deliveries as backorders.
- Not tracking cancelled backorders separately, even though they are lost revenue.
SQL & DAX
Calculating backorder rate in SQL and DAX
Two examples on a fictitious data warehouse for Acme Groothandel: a PostgreSQL query and a measure for a Power BI model. Adjust table and column names to your own model.
SELECT date_trunc('month', order_date) AS month,
COUNT(*) AS orders,
COUNT(*) FILTER (WHERE status = 'backorder') AS backorders,
ROUND(100.0 * COUNT(*) FILTER (WHERE status = 'backorder')
/ NULLIF(COUNT(*), 0), 1) AS backorder_pct,
SUM(total_amount) FILTER (WHERE status = 'backorder') AS backorder_value
FROM orders
WHERE order_date >= current_date - interval '12 months'
GROUP BY 1
ORDER BY 1;Backorder Rate = DIVIDE(CALCULATE(COUNTROWS(Orders), Orders[Status] = "backorder"), COUNTROWS(Orders))
Backorder Value = CALCULATE(SUM(Orders[TotalAmount]), Orders[Status] = "backorder")In ENABLE
Tracking this KPI in ENABLE
In your Power BI dashboard
Define the KPI as a measure in your Power BI model and show it in the portal, with "Last refreshed" next to it. Access profiles and optional row-level security decide who sees which figures.
Custom dashboards (pilot)
Add the KPI as a tile to a custom dashboard, compared with last year. The Dashboard Builder is a pilot and can be switched on per client.
Monthly targets
With the built-in Targets app you set a target for the KPI per month, so you see actuals and target side by side.
FAQ
Frequently asked questions
What is a backorder?
A backorder is an order, or part of one, that you cannot ship yet because the stock is not there. The customer waits for it to be delivered once new stock arrives. Unlike a sold-out item, the order has still been accepted.
How do you calculate backorder rate?
Divide the number of orders that went on back order by the total number of orders in the same period. Record the moment an order became a backorder so the figure does not change later. You can do the same on order lines for more detail.
How is backorder rate different from fill rate?
They look at the same problem at different moments. Backorder rate measures whether there is a shortage when the order is taken, fill rate measures whether the first shipment was complete. Together they show how often and how long customers wait for stock.
Further reading
- KPI libraryInventory and purchasing KPIs: formulasThese KPIs show how much cash is tied up in stock, how reliable suppliers are and how efficiently you produce. The data comes from your ERP, WMS and production records.Read more
- ResourcesHow to build a KPI dashboard: steps and examplesA KPI dashboard is an overview of the key figures you use to steer towards your goals, such as revenue, margin, on-time delivery or absenteeism. A good KPI dashboard does not start with the software, but with the decisions it needs to support. You then choose a limited number of KPIs, define them, sketch the dashboard and only then build it.Read more
- SolutionPower BI dashboard portal: share dashboards securelyShare your Power BI dashboards securely in your own portal, with role-based access.Read more
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