Avoid Splitting for Low-value Items Using Thresholds

When splitting orders, retailers can now set brokering shipment thresholds to prevent low-value items from being sent to a single fulfillment location.

3 min read | Mar 01, 2024

With consumers demanding fast and cost-effective delivery, retailers face complex logistical hurdles while managing operational costs. Retailers often split orders across multiple locations to optimize inventory usage and fast fulfillment. However, this strategy presents challenges, especially concerning the cost of shipping items with varying values. Retailers frequently encounter losses when splitting orders with low-value items. While multi-location fulfillment can ensure timely delivery and inventory optimization, it risks high shipping costs for low-value items.

With this update, HotWax Commerce empowers merchandisers to set threshold values for order items, ensuring more efficient order splitting while mitigating the risk of losses due to low-value shipments. For example, If you have two order items, like a 'Brown Belt' and a 'Brown Wallet,' each valued at $60, and you've set a brokering threshold of $50, the items will be shipped even if they're not available at a single location. However, if the items, like a 'Black Belt' and a 'Black Wallet,' are each valued at $20, the order won't be split.

Here's how it works:

  • Threshold Configuration: Users can now configure brokering shipment thresholds at the product store level, providing flexibility to tailor settings according to specific needs.

  • Smart Allocation: When inventory allocation proposes multiple locations to order items, HotWax Commerce performs a threshold check to determine the most cost-effective fulfillment location.

  • Efficient Fulfillment: If all location items meet the threshold criteria, order items are brokered, consolidating them into a single shipment from a single facility and shipping method, optimizing shipping costs.

  • Preventive Measures: In cases where any location item fails to meet the threshold, the order item is marked as unfillable, preventing potentially costly shipments.

Order Splitting with brokering shipment thresholds allows retailers the tools to navigate order fulfillment effectively. By integrating automation and customizable thresholds on split shipments, HotWax Commerce empowers retailers to achieve cost-efficient, streamlined operations that drive sustainable growth and profitability.