Why it matters
A contractor with a crew waiting on material doesn’t want to find out about a backorder by calling you. And a contractor waiting weeks for a credit remembers it next time they’re deciding where to buy. Handled well, backorders and returns are where a branch earns loyalty; handled badly, they’re where it loses it.
Backorders
Step 1: Spot backorders early
- At order entry, check availability and tell the contractor straight away if an item isn’t in stock.
- When a supplier’s ship date slips, identify every order it affects.
- Prioritize job-critical items — material a crew is waiting on.
Step 2: Tell the contractor before they have to ask
A good backorder notice includes:
- The item and order it affects
- A realistic new date — and how confident you are in it
- Their options
Step 3: Offer options
- Ship what’s available now and the rest when it arrives
- A substitute — if the contractor and, on project work, the specification allow it
- A transfer from another branch or warehouse
- Cancel the backordered lines, if they’d rather source elsewhere
Step 4: Keep them updated
- Update the contractor whenever the date changes — not just when it ships.
- Give each backorder one owner on your team.
- Close the loop when it ships, with delivery details.
Returns
Step 5: Have a clear, written return policy
Most distributors set out, for example:
- Time limit for returns
- Condition: unused, in original packaging, resaleable
- Items that can’t be returned, such as special orders or wire cut to length
- Restocking charges, if any, and when they apply
- What’s needed: proof of purchase and a return authorization
Publish it where contractors can see it, and apply it consistently.
Step 6: Use a simple return authorization process
- The contractor requests a return; you issue a return authorization with a reference number.
- The reference goes on the returned items and paperwork.
- The return is inspected on arrival and matched to the authorization.
Step 7: Credit promptly
- Issue the credit quickly once the return is accepted.
- Tell the contractor when it’s been applied.
- Restock or return to the supplier promptly, so returned items don’t sit in a corner.
Step 8: Record why every return happened
Common reasons include the wrong item ordered, the wrong item shipped, damage, and over-ordering. Tracking them shows what to fix — at the counter, in the warehouse or with a supplier.
Make it one process, not a hundred phone calls
- One queue for every backorder and return, not personal inboxes.
- One owner per issue.
- Automatic updates to the contractor as things change.
- A record on the account, so anyone can answer “where’s my order?” or “where’s my credit?”
Common mistakes
- Letting the contractor discover a backorder on delivery day
- Giving an optimistic date instead of a realistic one
- Offering no options — just “it’s on order”
- A return policy that exists only in people’s heads
- Accepting returns with no authorization or inspection
- Slow credits, and returned stock that’s never put back on the shelf