Misorders

Misorders are errors in the processing of orders that result in receiving the wrong products, quantities, or destinations. They can occur in procurement, manufacturing, warehousing, or retail fulfillment and are distinct from related issues such as mispicks (inadequate picking in a warehouse) or mis-shipments (shipping the correct item but to the wrong recipient). Misorders typically involve a mismatch between order details, inventory data, and supplier or customer requirements.

Common causes include human error in data entry or communication, incorrect item codes or SKUs, inaccurate or outdated master data, software glitches in enterprise resource planning or order management systems, and ambiguities in contracts or terms. Process gaps, such as lacking validation steps or insufficient reconciliation between purchase orders, invoices, and shipments, also contribute.

Types of misorders include receiving the wrong item or variant (for example, the wrong size, color, or model), incorrect quantities, duplicate or missing orders, and shipments sent to the wrong address. The consequences can be costly, including increased handling and restocking costs, delayed deliveries, stock imbalances, returns, and reduced customer satisfaction.

Detection and correction efforts focus on order validation, reconciliation, and cycle counting, as well as automated alerts for discrepancies. Reverse logistics and supplier collaboration help recover value from misorders and prevent recurrence. Prevention relies on accurate master data management, standardized item catalogs, integrated ordering and inventory systems, dual control or verification processes, and ongoing process improvement to minimize entry errors and data mismatches.