Backlog

Backlog refers to the total volume of orders that a company has received but not yet delivered, usually measured in monetary value or quantity, reflecting future delivery obligations. In foreign trade, it is often used to assess production load, delivery lead times, and revenue potential. Usage scenarios include: explaining reasons for delayed delivery to customers (e.g., 'order backlog has extended delivery times'), internal capacity planning, and disclosing unfinished orders in financial reports. Note: An excessively high backlog may lead to customer loss or breach of contract risks, while too low a backlog indicates insufficient demand; it should be distinguished from 'Open Orders,' which may include unconfirmed or cancellable orders, whereas Backlog typically refers to confirmed and non-cancellable orders. Similar to 'Order Book,' but Backlog emphasizes the undelivered portion. Additionally, Backlog does not include shipped but unpaid amounts and is not equivalent to 'Accounts Receivable.' Foreign trade practitioners should regularly monitor Backlog changes, combine capacity and supply chain conditions, reasonably promise delivery times, and avoid excessive backlog.