About Order Line Sourcing Rules

Sourcing Rules control how an order is filled. The rules are executed during Inventory Promising calls from webstores and during the Allocation process after the order is taken. Two types of rules must be defined for a Seller:

  • Core Rules: a set of rules, executed in sequential order, that determine how an order is fulfilled.
  • Seller Rules: a set of Fulfillment Constraints (for example, Order Ship Complete, Order Ship from Single Node), Fulfillment Optimizations, Sourcing Restrictions (for example, Max Splits), and Node Prioritization rules. Seller Rules are applied every time a sourcing process is executed.

Core Rules

Radial order sourcing comprises a master set of rules that determine how an order is fulfilled. Each client then creates configurations of these rules to meet their own, unique business requirements.

  • A rule set can include mandatory rules and optional rules. Rules are executed in a predefined sequential order.
  • You define a combination of selection criteria and core rules for each rule set.
  • A rule set is executed for each line in the order.
  • A seller can have multiple rule sets that can activate and/or expire. Based on the selection criteria, retailers can choose to have multiple sets.
  • A seller can have many active rule sets at a time.

Rule Sets

A rule set includes Selection Criteria and Sourcing Rules.

Selection Criteria

Based on the information in a sourcing request, the Selection Criteria determine which rule set to execute. For each line item in the request, the sourcing process matches data values from the incoming request to the selection criteria for each configured rule set until it finds a match. If no rule set is found for the line item in the request, an error occurs. The selection criteria can include:

  • Fulfillment Type:
    • SHIP_TO_HOME: Orders are shipped directly to the consumer’s home from a DC, a vendor, or a store.
    • STORE_PICKUP: Orders are fulfilled from a store's existing inventory and the consumer comes into the store to pick up the order.
    • SHIP_TO_STORE: Orders are shipped only to store locations rather than directly to a consumer. The consumer then comes into the store to pick up the order.
  • Item ID: When an Item ID is included in the selection criteria for a rule set, the rule set can only be used to source that specific item.
  • Item Attributes: For example, Dropship, Dropship only, and so on.
  • Line Attributes: For example, Associate Delivery.
  • Order Attributes: For example, Bulk Order.
  • Ship to Region Groups: When Ship to Region Groups is included in the selection criteria for a rule set, the rule set can only be used to source line items with ship-to addresses that fall within the regions included in the group.

Sourcing Rules

Sourcing rules include the following mandatory and optional rules:

  • Fulfillment Nodes for Sourcing (Mandatory): Specifies the node groups, nodes, zone groups, or distance groups to be used for sourcing items. The sourcing process determines fulfillment locations for the item in the sourcing request using the business logic described later in this topic.
  • Inventory Burn Rule (Mandatory): Select one of the following options.
    • Highest Available to Promise (ATP) Inventory (Default)
    • Highest Computed Supply, which is calculated using the following formula:
      • Computed Supply = ATP * (Supply Factor + 1), where Supply Factor is provided by the retailer per node or item or determined by predictive analysis that Radial provides.
      • Profitability: The profitability value can either be provided by the retailer per node / item or determined by predictive analysis provided that Radial provides.
  • Fulfillment Network Override (Optional): If this rule is enabled and the Item Sourcing Override attribute is set for the item in the request, only fulfillment nodes within the override network are used to source the item. If the Item Sourcing Override attribute is not provided for the item, the rule is not applied to the line item.
    Note: Retailers provide the Item Sourcing Override attributein the Item Master feed. The Item Master attribute name is SourcingOverride.
  • Fulfillment Geography Restriction (Optional): Defines shipping exclusions; that is, fulfillment locations that fall within the specified ship-from regions cannot ship to the locations within the defined ship-to regions. If the rule is enabled, the sourcing process uses a ship-to address of the item in the request to determine which fulfillment nodes cannot ship to the destination address. These nodes are then excluded from sourcing the item.

Seller Rules

Seller Rules are applied every time a rule set is executed. Seller rules include:

  • Fulfillment Optimization (Mandatory): Applied to ship groups. A Ship Group includes order items that are shipped to the same address with the same shipping method. The rule includes the following optimization types, which are executed in user-defined priority order.
    • Min Shipment: Chooses shipping options that result in minimum number of shipments. If the Min Shipment rule is assigned priority 1 and the Date rule is priority 2, then the Min Shipment rule is applied first. If the rule generates multiple shipping options that result in the same minimum number of shipments, then the Date rule is applied. If multiple options with same date remain, then landed cost (if enabled) is used to determine the best option. If landed cost is not enabled, then one of the options is chosen.
    • Date: This rule chooses shipping options with the earliest ship date for the items in the ship group. If the Date rule is assigned priority 1 and Min Shipment is priority 2, then the Date rule is executed first. If multiple shipping options with the same ship date are selected, the Min Shipment rule is applied. The number of shipments for the selected shipping options are compared and the one with minimal shipments is chosen.  If multiple options with same number of shipments remain, then landed cost (if enabled) is used to determine the best option. If landed cost is not enabled, then one of the options is chosen.
    • Landed Cost: The Fulfillment Optimization rule can include an additional option that allows the sourcing process to use Landed Cost to optimize the shipping choices for a ship group. If this option is enabled, the process chooses shipping options that result in a lower Landed Cost.
      Note: Landed Cost: By the time of sourcing, since the line items would only have carrier rate shopping keys, a default carrier setup (UPS or Fedex) for the seller is used for lookup of rate tables.
  • Fulfillment Constraints (Optional): Retailers can choose to enable the following fulfillment constraints.
    • Order Ship Complete: When this constraint is applied, the sourcing process chooses the generated shipping option(s) that can fulfill all items in the ship group without backordering some of the items. All items in the ship group must be completely scheduled or not scheduled at all. The items can be shipped from different locations.
    • Line Ship Complete: When this constraint is applied, the sourcing process will chooses the generated shipping options that can fulfill each order line in the ship group completely. Order lines can be sourced from different locations but the line must be completely scheduled or not scheduled at all. 
    • Order Ship from Single Node: When this constraint is applied, the sourcing process chooses the generated shipping option(s) that can source the entire ship group from a single node.
    • Line Ship from Single Node: When this constraint is applied, the sourcing process chooses the generated shipping options that can source each line in the ship group from a single node.

    The selected Fulfillment Constraints are applied to ship groups as the sourcing process generates the shipping options.

  • Sourcing Restrictions (Mandatory): Includes parameters that are applied whenever a sourcing process is executed.
    • Max Splits: This restriction limits the number of shipments per ship group to minimize shipping cost. When the restriction is applied to the generated shipping options, any shipping option that exceeds Max Splits is discarded. For example, if a shipping option includes 5 shipments and Max Splits is 3, the shipping option is discarded.
    • Maximum Node Availability Choices: This restriction limits the number of selected nodes with the inventory availability to fulfill a line item. The restriction is applied to line items every time a rule set is executed.
    • Maximum Shipping Choices to Generate: This restriction limits the number of generated shipping choices. The restriction is applied to ship groups during the shipping options generation process.
    • Max Resourcing Attempts Allowed Standard: This restriction limits the number of attempts to resource an item to be shipped with the standard shipping method. The restriction is applied when previously sourced items are declined during picking process and automatically sent for resourcing.
    • Max Resourcing Attempts Allowed Expedited:This restriction limits the number of attempts to resource an item to be shipped with the expedited shipping method
    • Exclude Drop Ship Client Paid and Exclude Drop Ship: These toggles enable you to include or exclude dropship locations from the Max Splits calculations. If you exclude these nodes, orders sourced from Drop Ship nodes are not canceled when they exceed the Max Splits rule. By default, both types of Drop Ship nodes are excluded from the Max Splits calculation.

    Note: ROM will categorize shipping methods as standard and expedited based on the Service Level. For example: “2 Day” service level will be considered as Expedited and “Ground” service level will be considered as Standard.

  • Node Prioritization: Includes the following optional rules.
    • Use Fulfillment Network Preference: If this rule is enabled, it is used as a final tie breaker after the constraints and optimization rules are applied.  Retailers provide the Sourcing Preference attribute in the Item Master feed. If the Sourcing Override (PREFERENCE?) attribute is not provided for the items in a ship group or if the rule is not enabled, one of the options is selected as the final shipping option for the ship group.
    • Use Node Item Preference: If this rule is enabled, the Node Item Preference attribute is used to sort Node Availability Choices when the Inventory Burn Rule is executed. Retailers provide the Node Item Preference attribute in the Node Item Feed.
    • Use Node Preference: If this rule is enabled, the Node Preference attribute is used to sort Node Availability Choices when the Inventory Burn Rule is executed. Retailers provide the “ode Preference attribute in the Node Feed.

Processes

Fulfillment Nodes Rule Process and Business Logic

  1. Get nodes from the highest priority Source from Locations first. Source from Locations (Zone Groups or Distance Groups, Dropship Vendor, Node Groups and/or Nodes) that are directly associated with the Rule Set. Note that multiple Source from Locations can have the same priority. When this is the case, the process considers all Source from Locations with the same priority. For example, if Zone Group or Distance Group has the same highest priority as a Node Group, then the process selects Nodes from the Zone Group, Distance Group, and Node Group.
  2. If the Fulfillment Geography rule is enabled, exclude restricted nodes (that is, the nodes that can’t ship to the item’s ship-to address).
  3. If the Network Override Rule is enabled, exclude nodes that are not in the Override Fulfillment Network. For example, the sourcing process excludes DC locations if the Override Fulfillment Network is Store.
  4. If the item in the request is Dropship Only, the item is sourced from the Primary Vendor.
  5. Determine inventory availability for the selected nodes. ROM supports on-hand and future inventory for availability calculation. The availability calculation process is:
    1. If none of the selected nodes has full availability to fulfill the item, the node search is expanded to the next priority Source from Locations (if they exist).
    2. If all selected nodes in the current iteration have no availability, the search is expanded to the next priority Source from Locations (if they exist).
    3. If no nodes are found that can fulfill the items, zero promisable quantity is returned.
    4. If the process found the nodes that have availability to fulfill the item, then:
  6. If the line item has no Sourcing Override, the sourcing process keep all selected DC locations with the inventory availability greater than zero.
  7. The Inventory Burn Rule is applied (see the following section).

Inventory Burn Rule Process

The Inventory Burn rule consists of a multi-layer sort process. This process groups the nodes selected by the Fulfillment Nodes for Sourcing rule by availability and Fulfillment Network Preference and then sorts the nodes by Inventory Burn (that is, by Highest ATP Inventory, Highest Computed Supply, or Profitability), groups and sorts the selected locations by Node Item Preference, and finally groups and sorts the selected locations by Node Preference. After the selected locations are sorted, the process limits the number of selected nodes by applying the Maximum Node Availability Choices sourcing restriction. For example, if the Fulfillment Nodes for Sourcing rule selects 10 nodes and the Maximum Node Availability Choices is set to 5, then 5 nodes are selected.

Available node choices for each line item are used to frame shipping options for every ship group to meet fulfillment optimization and constraints rules. The process looks at the optimization type and follows a certain algorithm to incrementally generate constraint-satisfying options. If in the initial options (for example, using all nodes with full inventory and on-hand supply) the process can find a shipping option by the optimization type, then that option is chosen. If no options are found with full on-hand inventory, then the options are expanded to full future inventory and then to nodes with partial availability (on-hand or future). If a generated shipping option exceeds Max Splits, the option is discarded. The generated shipping options are limited to the Maximum Shipping Choices to Generate.

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