Kibo decreases omnichannel fulfillment costs with new cost based order routing optimization feature

Dallas, Texas (June 7, 2016)   Kibo, the world’s leading Cloud-based unified omnichannel commerce platform, today announced the release of its new cost based order routing optimization capabilities within its Order Management System (OMS). This capability enables orders to be sourced based on the most cost-effective location for fulfillment, while still delivering on customer expectations.

In order to remain competitive, retailers need to provide omnichannel fulfillment options. As cited in a recent Kibo study, 60% of consumers will go to another retailer if their preferred fulfillment method isn’t available¹. However, there can be a number of variable costs depending on location that are often hidden to those making sourcing and routing decisions. This can make omnichannel fulfillment more expensive to execute than retailers anticipate. For example, according to a recent study by HRC Advisory, earnings for many omnichannel retailers have declined, due in part to “the much higher variable cost of servicing, completing and fulfilling e-commerce transactions.”²

With the introduction of Kibo’s cost based order routing optimization, retailers can now provide the fulfillment choices their customers want, while decreasing their costs. Kibo OMS collects estimated carrier costs, item unit costs, labor costs and staffing levels, among other data points, which offers tremendous flexibility to create strategies to automate routing decisions that optimize for both cost and service.

“With the introduction of cost based order routing optimization, retailers can drive dramatic improvements to their bottom line,” said Jennifer Sherman, SVP, Product and Strategy at Kibo. “Hundreds of retailers and manufacturers are already using Kibo to route orders based on inventory utilization, customer service commitments and supply chain disruptions to drive to perfect order fulfillment. Now maximizing customer service and delivering on your brand promise does not have to come at the expense of your bottom line.”

For more information about cost based order routing optimization or other Kibo solutions, email info@kibocommerce.com.

¹ “The Digitally Demanding Consumer”, Kibo Software, Inc. January 2016.
² “How E-commerce Is Eroding Retail Earnings” HRC Advisory, April 2016