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Operations

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%.

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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

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