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New DCL Service: Split Inventory Optimization
New DCL Service: Split Inventory Optimization
Shift your inventory allocation to "split by inventory" instead of the default "closest facility to the destination".
M
Written by Maureen
Updated over a week ago

DCL now offers a new service to customers who split inventory across multiple warehouses.

  • Default: DCL routes all orders to the closest facility to the destination zip code.

  • New Option: Customers can opt-in to have orders routed to a warehouse based on the inventory net available.

All accounts will continue to use the “closest facility” default routing, unless otherwise decided by the customer and their account management team. To turn this new feature on, customers need to work with DCL to implement the new routing configuration.

Expect a two week timeline to program and test before going live.


Split Warehouse Order Routing Options

Routing Option

Flow

Benefits

Closest facility to delivery point

Default

  • Order is received

  • System checks zip code

  • Batches orders to facility closest to delivery point

Lower freight costs

Inventory Net Available

New, opt-in

  • Order is received

  • The inventory net available is checked.

  • The order is routed to the location with net availability.

  • If the inventory is available at both locations, then the order is routed to the facility closest to the delivery point.

  • SLA is met due to timely automated process.

  • Remove backorders

  • Limit shipping delays

  • Lower change order fees

Orders with Multiple Lines will Default

In the event that an order containing multiple lines where one or more of them are out of stock, the default option will be to select the closest facility based on the destination zip code.

In this scenario, orders that are out of stock will go on backorder at the facility closest to the delivery point.

If this scenario happens, customers need to either provide more stock or cancel the line(s) that are out of stock.

How do I turn this on?

1. Request it from Your Account Team

Customers can request this new feature from their account team. Please send an email with on hand inventory routing detail to your team, include the following:

  • Account number

  • Warehouse locations being used

  • Requested go-live date

2. DCL will Configure the Change

The change needs to be programmed internally by our IT and Operations teams.

Allow five business days for this to be processed once the details are approved by the customer and DCL.

3. Test Orders and Go Live

Once the process is approved, the following steps are required before turning this feature on.

  • Make sure programming is confirmed.

  • Test orders.

  • Agree on a go live date.

Who is Eligible for Split by Inventory?

Customers who are already shipping out of multiple facilities.

Split by inventory is a good feature for accounts experiencing any of the following:

  1. Orders are being impacted by inventory on hand shortages

  2. Orders are sitting in Back log status

  3. Orders are being cancelled, changed or re-routed by DCL

On-hand inventory routing is not a good idea for every brand. For example EDI orders that are being routed through a retail connection will not be able to use split by inventory.

What is the impact of the new feature?

For customers who ship from two or more warehouses, the “spilt by inventory” feature will have the effect of ruling out any warehouses where the inventory is not present. Whichever warehouses remain after applying this filter, the normal proximity-based rules will apply (lowest shipping zone number wins).

Customers need to understand their order percentage allocation and inventory stocking levels prior to making any changes. Inventory levels may be decreased based on stock levels and reviewing inventory stock by warehouse location will be important.

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