GlossaryEN1 min readUpdated: Jun 9, 2026

Backup Inventory

A supplier receives an urgent order and discovers the usual carrier is unavailable.

Quick Answer

Last updated: 9 June 2026Published: 19 June 2025

Source: https://www.businessdictionary.com/definition/backup-inventory.html

Category

Incoterms 2020 Simulator: Who bears costs & risk?

Reading time

1 min

Words

Mentioned in

–

Definition & Explanation

A supplier receives an urgent order and discovers the usual carrier is unavailable. With established backup inventory—additional stock held beyond normal requirements—the shipment can still be packed and dispatched on time. Backup inventory protects against supply shortages, demand fluctuations, and unexpected disruptions in the supply chain. It is typically necessary for critical or expensive components, fast-moving SKUs, or in industries with extended lead times (electronics, pharmaceuticals, automotive). The cost lies in warehousing and tied-up capital; the benefit lies in supply security and protection against lost sales.

Next steps

Tools that match this term

Compare IncotermsClarify duties, cost and riskOpen Find HS codeDetermine the tariff number for customsOpen Calculate customs valueWork out import duties and customs valueOpen Calculate transit timeEstimate duration per transport modeOpen

Related Terms

You might also be interested in these terms

Reefer Backup Power Systems

A reefer backup power system is a self-contained electrical supply unit — typically a diesel generator or battery module — that ke…

Learn more

Backup Carrier

A backup carrier is a pre-approved transport provider contracted by a shipper or freight forwarder to step in when the primary car…

Learn more

Reefer Asset Backup Systems

A backup system for refrigerated containers (reefers) is standby power or redundancy equipment that keeps the cold chain intact wh…

Learn more

Backup Carrier Agreements

Backup carrier agreements ensure a shipper can immediately engage an alternative transport provider if the primary carrier fails o…

Learn more

Backup Freight Management Systems

IT and operations managers at freight companies rely on backup freight management systems to keep transport operations running whe…

Learn more

Backup Freight Routing Systems

Unlike fixed routing models, backup freight routing systems respond dynamically to network disruptions: when primary lanes are blo…

Learn more

⚖️ ICC Incoterms 2020

Incoterms 2020 Simulator: Who bears costs & risk?

Analyze all 11 Incoterms 2020: cost matrix, risk timeline, insurance gap detector and customs responsibility – free, no login required.

Incoterms Simulator →

Logistics knowledge straight to your inbox

Weekly: Top news, industry facts and insights from the world of logistics – free.

Backup Inventory

Next steps

Related Terms

Reefer Backup Power Systems

Backup Carrier

Reefer Asset Backup Systems

Backup Carrier Agreements

Backup Freight Management Systems

Backup Freight Routing Systems

Incoterms 2020 Simulator: Who bears costs & risk?

Logistics knowledge straight to your inbox

Community Questions & Answers