Stock allocation
Quick answer
Reserving available stock for confirmed orders by priority rules to prevent over-promising.
Key takeaways
- Order FIFO - first to order, first served
- Customer/channel priority - key customers or profitable channels served first
- Partial allocation - fulfil what's possible, the rest goes to backorder
- Per warehouse - allocate from the optimal location for delivery
What stock allocation is
Stock allocation is the process of reserving available physical units for confirmed orders. Once allocated, stock can no longer be promised to another order - the mechanism that prevents selling the same product twice.
Allocation rules
- Order FIFO - first to order, first served
- Customer/channel priority - key customers or profitable channels served first
- Partial allocation - fulfil what's possible, the rest goes to backorder
- Per warehouse - allocate from the optimal location for delivery
Why it matters in omnichannel
When you sell across channels (store, online, marketplace, B2B) from the same stock, without central allocation over-promises arise: two customers buy the last unit. An OMS allocates from a unified stock.
How CRMconnect helps
The CRMconnect OMS keeps unified stock across all channels and allocates in real time by configurable priority rules, eliminating over-promises and optimising which warehouse fulfils each order.
Real-world example
A retailer sold from the same stock on its site, marketplace and B2B, with frequent over-promises during promotions. With central allocation in CRMconnect, each channel sees real availability and orders are allocated by priority - out-of-stock cancellations dropped 85%.
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Frequently asked
Difference between available and allocated stock?+
Available stock (ATP) can be promised to new orders. Allocated stock is already reserved for confirmed orders and no longer available for others. The difference prevents over-promising.
What is partial allocation?+
When an order can't be fully fulfilled, the system allocates what's available and puts the rest in backorder, instead of blocking the whole order. Configurable by business rules.
How does allocation prevent omnichannel over-promising?+
Through unified stock: all channels draw from the same pool and reserve at confirmation. Without a central OMS, each channel has its own stock and duplicates appear on the same physical product.
Where CRMconnect fits
Related terms
OMS (Order Management System)
The system centralizing orders from every channel (EDI, online, phone, field agent) and orchestrating execution.
OperationsATP - Available to Promise
The stock quantity that can be safely promised to a new order, accounting for on-hand stock, allocations and future inbound.
OperationsBackorder
Order accepted but not deliverable from current stock - fulfilled at a known future date.
LogisticsWMS (Warehouse Management System)
The system orchestrating physical warehouse operations: receiving, putaway, picking, packing, shipping.