Perorder

Perorder is a relatively uncommon term used in some industry discussions to describe a fulfillment or procurement approach in which goods are produced, procured, or allocated per customer order rather than being stocked in advance. The term is not part of a formal international standard and appears mostly in glossaries, vendor policy documents, and practical discussions among retailers, manufacturers, and logistics providers. In its broad sense, perorder contrasts with make-to-stock and with standard preorder policies, aligning more closely with concepts such as make-to-order or just-in-time production but emphasizing immediate alignment with an individual order at the point of decision rather than a forecast.

Applications and interpretations include e-commerce environments where items are not billed or committed until the customer confirms the order, particularly for configurable or high-cost items. In manufacturing and procurement, perorder production or purchasing means the plan is driven directly by confirmed orders, potentially enabling customization and reducing finished-goods inventory.

Advantages of the approach include lower inventory carrying costs and reduced risk of unsold stock or obsolescence, along with support for customization. Challenges can include longer lead times, more complex scheduling, higher unit costs, and greater dependence on accurate order flow and supplier responsiveness.

Relation to related terms: perorder is related to but distinct from preorder, where demand is acknowledged before production, and from make-to-order in which production is triggered by a confirmed order. It also intersects with just-in-time and build-to-order concepts in emphasizing responsiveness to actual demand.