Planograms are an effective tool for retailers to manage backorder issues. A planogram is a visual representation or diagram that outlines the arrangement and placement of products in a retail store. By optimizing shelf space, prioritizing in-stock items, identifying inventory gaps, and streamlining the ordering process, retailers can ensure that they are meeting customer demands and maximizing sales opportunities.

1. How can
Planograms
Help Retailers
Handle
Backorder
Issues?

2. What are Backorders?
It refers to the situation where a product is currently out-of-stock or
unavailable and the store orders it.
For example, a shopper goes to a retail store to get a pair of shoes that he
has had his eyes on for quite some time, but the shoes are not available in
the store at present.
Waiting for a product can easily turn an excited shopper into a frustrated
one, which prompts them to purchase similar items or visit other stores.

3. How can Planograms
Help with Backorder
Issues?
• Planograms help retailers outline the arrangement
and placement of products in a retail store.
• By optimizing shelf space, prioritizing in-stock items,
identifying inventory gaps, and streamlining the
ordering process, retailers can ensure that they are
meeting customer demands and maximizing sales
opportunities.

4. Planogram Ways to Handle Backorder Issues
Prioritize in-stock items Optimize shelf space
Cross-merchandise
items
Efficient stock
replenishment

5. Prioritize in-stock items
• By rearranging the shelves and highlighting the available
products, you can ensure that customers are aware of the
items that are available for purchase.
• Analyzing sales data and customer preferences can ensure
that high-demand items are readily available, reducing the
likelihood of backorders.
• This helps retailers streamline the ordering process by
providing a clear picture of what products are selling well
and which ones are not.
• This allows retailers to adjust their orders accordingly and
ensure that they are not overordered or underordered.

6. Optimize shelf space
• Retailers can make the most of their shelf space to ensure that
they are able to showcase all available products in a way that is
easy for customers to navigate.
• By organizing the shelves based on product categories and
popularity, customers can find what they need quickly and easily.
• Retailers can manage backorders by offering alternatives or
notifying customers of estimated restock dates.
• For example, if you are an electronic store retailer, you will stock
the newly launched phones because of their high demand.
• If the phone is on backorder, you can mention the availability of
the product on labels.

7. Cross-merchandise items
Planograms provide insights into
complementary products or substitutes that
can be positioned near items that are on
backorder.
This allows retailers to maximize sales
opportunities by guiding customers towards
alternative options, reducing frustration
associated with unavailability.
By incorporating real-time inventory data into
planograms, retailers can quickly identify
which products are on backorder.
This visibility enables them to allocate space
on shelves for alternative products or suggest
suitable substitutes to customers.

8. Efficient stock
replenishment • Retailers can determine the optimal quantities to order for each
product based on past sales data and market demand.
• By maintaining accurate stock levels and minimizing excess
inventory, retailers can reduce the occurrence of backorders.
• You can share planograms with suppliers to provide a visual
representation of shelf arrangements and space allocation.
• By sharing information about backorder issues, retailers can
collaborate with suppliers to expedite restocking and find
solutions that mitigate the impact of backorders.

9. Use Nexgen POG to effectively plan and execute retail
store shelves to improve sales.
www.nexgenus.com sales@nexgenus.com