Smart Order Routing

  • Updated

Logiwa Smart Order routing determines which inventory sources to use to fulfill order items. Inventory may be sourced from one of your facilities or from one of your external vendors such as Dropshippers, 3PLs, etc... 

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What are the Available Functions?

  • Route Orders Based On Customer Address
  • Route Orders Based on Inventory Levels and Assign Priority to Different Facilities
  • Route Orders Based on Shipping Options or Delivery Dates
  • Split the Orders to different warehouses if needed

And mix and match above rules...

What are the Unavailable Functions?

  • Splitting an order line into multiple warehouses is not supported. An order line should be fulfilled from 1 warehouse
  • Updating shipment orders after the operation is started for the order
  • Using the order routing function for manually created or excel imported orders is not supported. This function is only available for orders downloaded from Store.
  • Checking the substitute items' inventory levels is not available
     

Contact support@logiwa.com to activate Smart Order Routing for your account.

Getting Started

First, define your business rules for the order routing algorithm,

  • Define the custom rules for the warehouses e.g., you can define the states/countries that will be shipped from a warehouse.
  • Define the sequences of warehouses, which warehouse will have the highest priority?
  • Do you want the warehouses' inventory levels to be checked while downloading orders?
  • Do you want the orders to be split if the items cannot be fulfilled from one warehouse?

Then, share these routing rules with the Logiwa support team, they will set your routing algorithm on Logiwa.

After that, you should follow some steps while creating new store connections. 

  • The first thing you should do is, connect your store on Logiwa. While doing this operation, you should create the store setup while choosing the Warehouse Group and Warehouse
  • Warehouse group info is also important for “send inventory” and “send shipment” processes.

    When you create a store setup with warehouse group info, all warehouses' inventories will be summed up while sending the inventories to the store. Otherwise, only the setup’s warehouse’s inventories will be sent to the store.

    When you create a store setup with warehouse group info, shipment orders' shipment info will be summed up while sending the shipment info to the store. Otherwise, only the setup’s warehouse’s shipment info will be sent to the store.

  • The selected warehouse will be considered as the default warehouse on the order routing process.
  • You should create only one store setup for the same store connection. Otherwise, orders will be multiplied and created for every warehouse that has a setup.

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  • Choose the related Order Routing Algorithm for your store and click the save button.

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  • If you don't select the Warehouse Group or Order Routing Algorithm for your store connection, order routing won't work while getting the orders.

Default warehouse: Default warehouse info will be used as a last option on the order routing. If none of your warehouses is suitable for your order, this order will be downloaded to your default warehouse. This warehouse is the warehouse that is used on the store management screen.

 

How Do The Rules work?

On the order routing process, Logiwa has two main functions and the order downloading process will be changed based on these functions.

  • Check inventory levels?
  • Split the order?

Check Inventory Levels? : If this parameter is opened on your routing algorithm, the warehouses' inventory levels will be checked while creating orders and orders will be created on the warehouse which has enough inventories.

Split the Order? : If this parameter is opened on your routing algorithm, the warehouses' inventory levels will be checked line based and if there is a warehouse which has enough inventories for all the items then the order will be created on this warehouse but if not, the order lines will be split for suitable warehouses.

NOTE: On the order splitting process, the system tries to allocate the whole order from a warehouse even though the warehouse doesn't have the highest priority

Sample Cases

To make it clear, here are some cases and results based on these functions.

order-routing-2.png

NOTE: In the cases below; all of the warehouses' constraints assumed to be satisfied and only the results which are related to "check inventory level" and "split order" functions are listed.

On these tables, you can see the inventory levels for the items and order quantities for these items.

CASE #1

order-routing-3.png

Check Inventory Levels? : PASSIVE

Split Orders? : PASSIVE

In this case, "check inventory levels" and "split order" functions are closed on your routing algorithm. Because of that, the system chooses the warehouse with the highest priority on the sequence which is: Alohomora.

CASE #2

order-routing-5.png

Check Inventory Levels? : ACTIVE

Split Orders? : PASSIVE

In this case, the "check inventory levels" function is opened and Wingardium_leviosa and Avada_kedavra warehouses fulfill the order conditions. Because of that, the system chooses the warehouse with the highest priority on the sequence which is: Wingardium_Leviosa.

CASE #3

order-routing-6.png

Check Inventory Levels? : ACTIVE

Split Orders? : PASSIVE

In this case,my_item_11 is only available on the warehouse Avada_kedavra. Because of that, the routing algorithm chooses the default warehouse Avada_kedavra.

CASE #4

order-routing-7.png

Check Inventory Levels? : ACTIVE

Split Orders? : PASSIVE

In this case, my_item_13 and my_item_15 are available on all of the warehouses but, my_item_14 is not available on any warehouse. Because of that, the routing algorithm chooses the default warehouse: Wingardium_Leviosa.

CASE #5

order-routing-8.png

Check Inventory Levels? : ACTIVE

Split Orders? : ACTIVE

In this case, the "split order " function is also opened and all of the items are available on all of the warehouses. Because of that, the routing algorithm chooses the warehouse that has the smallest sequence: Alohomora.

CASE #6

order-routing-9.png

Check Inventory Levels? : ACTIVE

Split Orders? : ACTIVE

In this case, the warehouse Avada_kedavra supplies all of the ordered items. Because of that, the routing algorithm chooses that warehouse: Avada_kedavra.

CASE #7

order-routing-10.png

Check Inventory Levels? : ACTIVE

Split Orders? : ACTIVE

In this case, my_item_28 is available on the warehouse Alohomora, my_item_29 is available on the warehouse Wingardium_leviosa and my_item_30 is available on the warehouse Avada_kedavra. Because of that, the routing algorithm chooses the warehouse Alohomora for my_item_28,  warehouse Wingardium_leviosa for my_item_29 and Avada_kedavra for my_item_30.

CASE #8

order-routing-11.png

Check Inventory Levels? : ACTIVE

Split Orders? : ACTIVE

In this case, my_item_38 and my_item_39 are available on the warehouse Avada_kedavra, my_item_37 is not available on any warehouses. Because of that, the routing algorithm chooses the warehouse Avada_kedavra for my_item_38 and my_item_39, the routing algorithm also chooses the default warehouse for my_item_37: Wingradium_leviosa.

CASE #9

order-routing-12.png

Check Inventory Levels? : ACTIVE

Split Orders? : ACTIVE

In this case, any warehouse does not supply any of the items. Because of that, the routing algorithm chooses that default warehouse: Wingradium_leviosa.

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