Order routing
Quick answer
The automatic decision on which warehouse or location fulfils each order, for optimal cost and delivery time.
Key takeaways
- Proximity - the warehouse closest to the customer (low transport cost and time)
- Availability - where stock exists for all lines
- Cost - balancing transport and handling costs
- Capacity - avoiding overloading a single warehouse
What order routing is
Order routing is the decision on which warehouse/location fulfils each order when you have multiple stock sources (warehouses, stores, supplier dropship). The goal: minimum total cost and fastest delivery.
Routing criteria
- Proximity - the warehouse closest to the customer (low transport cost and time)
- Availability - where stock exists for all lines
- Cost - balancing transport and handling costs
- Capacity - avoiding overloading a single warehouse
Ship-from-store and dropship
Modern routing can fulfil from stores (ship-from-store) or directly from suppliers (dropship), not just the central warehouse - cutting delivery time and stockouts.
How CRMconnect helps
The CRMconnect OMS routes each order to the optimal source on rules (proximity, stock, cost, capacity), supporting multi-warehouse, ship-from-store and dropship - faster deliveries at lower cost.
Real-world example
A retailer with 2 warehouses and 15 stores fulfilled everything from the central warehouse, with high costs and delays. With order routing in CRMconnect (ship-from-store by proximity), average delivery time dropped 1.4 days and transport cost 18%.
Last updated:
Frequently asked
What is ship-from-store?+
A routing strategy where online orders are fulfilled from the stock of physical stores near the customer, not just the central warehouse - faster delivery and better use of store stock.
How does the system decide which warehouse fulfils?+
On configurable rules: proximity to the customer, stock availability for all lines, transport cost and warehouse capacity. The OMS optimises the combination.
Does order routing reduce split shipment?+
It can. A good engine prefers to fulfil an order from a single source (cheaper), resorting to split only when no warehouse has all lines.
Where CRMconnect fits
Related terms
Order orchestration
Automatically coordinating each order's lifecycle from capture to delivery, across channels and warehouses.
OperationsDistributed Order Management (DOM)
Managing orders across a distributed network of stock sources (warehouses, stores, suppliers) with centralised fulfilment decisions.
TechnologyOMS (Order Management System)
The system centralizing orders from every channel (EDI, online, phone, field agent) and orchestrating execution.
LogisticsLast-mile
The final delivery stage - from local DC to end customer. The most expensive segment.