Backorder Management: Case Study from a Drywall Supplier

How one branch turned a backorder problem into a contractor loyalty win.

Backorders are inevitable in building-materials distribution. But unmanaged backorders? That’s how you lose customers.

For drywall suppliers in particular—where 5/8” Type X, lightweight board, or mold-resistant panels are required to keep framing on schedule—delays create immediate jobsite friction. Contractors don’t want excuses; they want updates, alternatives, and clear answers.

This case study from a regional Buldix branch in Ontario highlights what went wrong with backorder tracking—and how they fixed it to build trust, improve fill rates, and regain control of their contractor relationships.

The challenge: Invisibility and reactionary scrambling

Short-tail: “drywall supply backorder issues,” “contractor jobsite delay risk.”

In early 2024, the Mississauga yard was consistently facing high-volume demand for 4×12 Type X drywall—mostly for multifamily mid-rise projects. When supplier lead times stretched due to plant slowdowns, the branch defaulted to handwritten backorder logs and ad hoc calls to vendors.

Result:

Contractors didn’t know when to expect backfilled orders

Yard crews staged partial loads without knowing what was missing

Sales reps promised ETAs based on guesswork

By Q2, contractor complaints jumped 30%, and multiple accounts reduced order volume.

Step 1: Centralize backorder data inside ERP

Long-tail: “ERP backorder visibility drywall,” “real-time backorder tracking tools.”

The first fix was eliminating email threads and paper logs. The team moved all backorder tracking into their ERP, tagging every open order line by fulfillment status:

Filled

Backordered – pending ETA

Backordered – vendor confirmed ETA

Substituted

This gave everyone—from the sales desk to dispatch—one source of truth on what was delayed, what was inbound, and what had been substituted or canceled.

Step 2: Assign backorder watch to a single owner

Short-tail: “backorder accountability building supply,” “drywall fulfillment process.”

Prior to the fix, backorder follow-up was no one’s job—and therefore everyone’s problem. The yard appointed a single backorder coordinator to:

Review all open backorders each morning

Call vendors for updates on aged lines

Update ERP notes with confirmed ETAs

Flag delays >7 days to sales for customer communication

This role centralized responsibility and created daily visibility around aging issues.

Step 3: Automate contractor notifications for delayed items

Long-tail: “contractor alert for backordered materials,” “automated fulfillment ETA updates.”

One of the biggest pain points for builders? Not knowing if they should delay a crew or wait for a drop. The Buldix yard used its CRM to trigger templated email and SMS alerts to contractors when:

An item was confirmed backordered

A revised ETA was received

A substitute was proposed

These alerts included SKU, jobsite, new ETA, and rep contact for follow-up. The impact? Contractor call volume dropped by 40% within two weeks.

Step 4: Offer same-grade substitutions where possible

Short-tail: “drywall substitution protocol,” “alternate product backorder resolution.”

Instead of waiting on specific brands or board specs, the yard pre-approved a list of substitutable drywall SKUs by fire rating, thickness, and board length. When a stockout occurred, reps were trained to offer:

Lightweight vs. standard

10’ instead of 12’

Equivalent fire-rated from a different mill

This reduced backorder lines by 18% in the first 60 days, while maintaining code compliance and contractor satisfaction.

Step 5: Track fill rate KPIs and publish weekly dashboards

Long-tail: “backorder performance metrics drywall,” “contractor order fulfillment tracking.”

Backorder data without measurement is just noise. The team tracked:

Backorder fill rate (% of orders completed within target window)

Average backorder age per SKU

Backorder lines as a % of total orders

Contractor complaints tied to backorders

Weekly dashboards were shared with procurement, sales, and yard leads—focusing attention on chronic issues and high-impact SKUs.

Step 6: Use historical backorder data to inform forward buys

Short-tail: “drywall forward buying strategy,” “procurement planning from backorders.”

By analyzing which SKUs repeatedly triggered backorders—especially during spring surges—the yard used forward-buy planning to get ahead of 2025’s Q1 cycle. For example:

Type X 5/8” 4×12 board

1/2” lightweight panels

Mold-resistant for healthcare projects

These items were reordered early from top-tier vendors and stocked in higher quantities, reducing reliance on just-in-time inventory for critical phases.

The result: Higher confidence, fewer calls, better retention

Within 90 days of the changes:

The backorder fill rate improved from 78% to 95%

Complaint volume on drywall orders dropped by 50%

Reps gained 4+ hours a week by not chasing ETAs manually

Two lost accounts returned based on improved communication

Conclusion

Backorders don’t just disrupt fulfillment—they erode credibility. For Buldix and drywall suppliers managing tight jobsite timelines, backorder strategy must be proactive, system-driven, and transparent. From ERP visibility to contractor alerts and substitution playbooks, every part of the chain must align.

Because in distribution, it’s not just what you stock—it’s how you manage what you don’t.