What Happens When You Can’t Fill Orders?

Posted

Having more orders than you can handle seems like a good problem, like having a Ferrari in the wrong color or more $100 bills than you can count. After all, you must be doing something right. Selling more products than you can handle might cause a short-term headache, but it bodes well for the quality of your product and for your marketing efforts.

That short-term headache might turn into a long-term one, however. The thing about orders left unfilled: The problem fixes itself one way or the other. Either you fix the problem or the market fixes it for you, meaning that clients decide to cancel orders and move on to another supplier.

You might not get much time to fix it, though. Your clients need to react fast to their business pressures and might not have time to wait for you to go through a lengthy hiring and training process. It is crucial to have the necessary flexibility to handle a sudden surge in orders. The opportunity may not come again.

The problems that result from not filling orders come in three stages: short term, medium term and long term. Let’s take a look:

Short Term: You Lose the Client Whose Order You Can’t Fill

The most immediate result of an inability to complete orders comes from the loss of that client. They might cut you a little slack in the beginning but ultimately, they have customers of their own to worry about. Even if the worst that happens on this specific order is they complain, the chances are lower they will give you another order in the future. At the very least, they will start shopping around, which will eventually force you to scramble to keep them.

Medium Term: Orders for Other Clients Are Impacted

The issues surrounding unfilled orders can quickly spiral. You pull employees off other orders to fill the one that has fallen behind. Eventually everyone’s orders start to get delayed, or you can only fill partial orders. Suddenly, you are paying expensive overtime to get everything finished, and your margins become challenged. You can only exist in an emergency situation for so long before the strain starts to impact long-term viability.

Long Term: Lower Chances of Scoring Future Clients

If the problem persists for long enough, your reputation is at stake. Word gets around that you are unreliable and follow-up orders become scarce. You begin to hope sales prospects haven’t talked to any of your clients and dread the inevitable questions about reliability. The sad thing is this reputational damage can happen quickly.

Solution: Flexible Staffing

One potential solution to the issue of overburdened production is a reliable source of temporary workers. Flexibility is key to surviving the ebbs and flows of the business cycle. You can’t carry full-time workers during slow times, and trying to maintain your own stable of part-timers can lead to high turnover.

So, let a staffing agency help. DHR Staffing is a leading industrial temp agency in the Houston, Texas, area. They can provide the temporary staffing you need to ensure all your orders are completed on time and at the highest possible quality.

Leave a Reply

  • (will not be published)