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Watch your backlog of unshipped orders not only for the number of orders incomplete but also for their dollar value. Your backlog also needs to be prioritized; emphasis on current large profitable customers takes precedence over small insignificant orders with little profit or promise. Yes, all orders are important but you only have so much time and effort so make sure to prioritize your efforts where the money is.
After reviewing the backlog, compare it to the customer list:
- Why is the backlog lower or higher?
- Who is involved?
- Who is missing?
- Where are the new customers we have been visiting? What is their status?
- Why have specific customers NOT ordered so far this month when it is past their normal order date?
- If your backlog shows estimated gross profit margins and %s, why are they dropping or increasing?
- On all high or low margin %s, find out if the estimates are flawed or the costs have risen or were mistakenly omitted.
Review the backlog number daily if you are able to and watch for trends.
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