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KIBO is Named a Leader in the 2026 Gartner® Magic Quadrant for Distributed Order Management.Reserve Your Copy

Source Each Order From the Best Location and Avoid Unnecessary Splits

KIBO evaluates distance, shipping cost, location capacity, and inventory velocity to assign every order to the optimal fulfillment node across B2C and B2B sales channels.

Last-Mile Costs, Store Pick Costs, and Overstocks Squeeze Fulfillment Margins.

Outdated priority lists, uncoordinated fulfillment, and unnecessary split shipments raise carrier costs and erode net margins.

The Cost of Getting it Wrong.

Capgemini Research Institute
41% share of overall supply chain costs that last-mile delivery accounts for, according to Capgemini Research Institute.
1.5–2x how much more in-store picking costs per pick than picking at distribution and fulfillment centers, for most retailers, according to McKinsey.
IHL Group
$572B annual global cost of overstocks, the excess discounts and spoilage that follow.

Static Lists Cannot Protect Fulfillment Margins.

Unnecessary Split Shipments

Orders break into multiple shipments from different facilities, which multiplies shipping fees and packaging waste.

Store Floor Overload

Stores receive more pick requests than their labor can handle, which causes fulfillment bottlenecks and cancelled orders.

Unbalanced Inventory Markdowns

Slow-moving inventory stays trapped in secondary regional hubs while fast-selling locations run out of stock.

Rigid Static Logic

Legacy routing rules don't adapt in real time when stock validation fails or fulfillment nodes face temporary disruptions.

Order Sourcing Capabilities.

From the incoming order to the location that ships it.

Excess storesThen DCsThen dropshipFail-over by scenarioPer strategy

An enterprise merchant configures a strategy that tries local retail stores holding excess inventory first, then fails over to regional distribution centers only when store capacity thresholds are reached.

Multi-Variable Sourcing Strategies & Scenarios

Strategies built from routes, scenarios, filters, and after actions pick the best location for each order.

  • Hierarchical strategy engine built from Routes, Scenarios, Filters, and After Actions
  • Evaluates item attributes, customer location, shipping SLAs, and location capabilities in real time
  • Selects the optimal fulfillment node

Geographic Distance & Proximity Sourcing Optimization

Orders go to the location closest to the buyer.

  • Dynamic distance calculation evaluates exact geographic proximity between fulfillment nodes and delivery destinations
  • Reduces shipping carrier transit costs
  • Shortens delivery windows
  • Lowers carbon footprints across all orders
OrderDenverHub 2 · 120 miAssignedHub 4 · 610 miBackupHub 1 · 980 miExcluded

When a buyer places an order, KIBO calculates transit distances across five regional fulfillment hubs and assigns the shipment to the node that guarantees one-day ground delivery at standard shipping rates.

Store networkExcess stock by sizeClear size MSML

An apparel retailer routes online orders to store locations carrying high excess stock of specific sizes, which clears floor space while preserving full gross margin.

Inventory Velocity & Excess-Stock Clearance Sourcing

Orders go first to locations with surplus stock, so slow-moving inventory moves.

  • Sourcing filters sort candidate fulfillment locations by excess inventory levels or slow turnover rates
  • Pick requests go to facilities holding surplus stock
  • Accelerates inventory velocity and avoids end-of-season markdowns

Daily Assignment Thresholds & Workload Balancing

Limits on daily or hourly orders keep any one location from being overloaded.

  • Configurable order assignment caps limit the maximum number of orders or items a location can receive per day or hour
  • Protects retail store labor
  • Prevents fulfillment backlogs
  • Maintains SLA compliance across the network
Small store · cap 50Pick requests · 50 / 50Cap reachedRoute to DCTomorrowBack in the pool

A merchant sets a cap of 50 daily pick requests for small retail stores. Once it is reached, KIBO routes subsequent orders to high-capacity distribution centers.

Sourceable20 line itemsConfirmedSingle DCThuDelivery datePromiseBefore checkout

A commercial buyer reviews their cart. KIBO's pre-purchase API verifies that all 20 requested line items can be sourced from a single local warehouse, and a guaranteed delivery date appears before checkout.

Pre-Purchase Sourcing Checks & Real-Time Promising

Sourcing logic runs at the cart, so shoppers see a viable location and delivery date before they order.

  • Invokes sourcing logic during cart evaluation and checkout through suggestion APIs
  • Confirms location viability
  • Calculates precise Estimated Delivery Dates (EDD)
  • Validates pickup or delivery options in milliseconds before order placement

Automated Failover, Transfer Routes & Package Consolidation

When stock validation fails, items are rerouted, and missing items can be moved to one location for a single shipment.

  • Automated failover strategies handle stock validation rejections
  • Unassigned items are re-routed instantly
  • Transfer routes move missing items to a single location for consolidated shipping
  • Consolidation eliminates multi-package waste
Item damagedFail overConsolidateRe-routed to Store 9One package

When a store associate flags an item as damaged during picking, KIBO fails over and re-routes the missing line item to a secondary store without canceling the order.

#4410Suggestion logReplayRouting debuggerCloser DCWhat ifExplainedFix the rule

An operations manager retrieves the Suggestion Log for an order sourced from a distant DC, replays it in the Routing Debugger with mock inventory, and confirms why local nodes were bypassed.

Sourcing Decision Audit & Counterfactual Simulation

Every sourcing decision leaves a record you can read and replay.

  • Decision-level transparency into every sourcing assignment
  • Suggestion Logs retrieve the complete logical trail for any order
  • The Routing Debugger replays sourcing decisions against real or mock inventory
  • Counterfactual scenarios run without impacting live stock

AI Sourcing Copilot with KIBO AI

A KIBO AI assistant builds strategies, explains routing, and charts results, with a person in the loop.

  • A conversational assistant that manages the sourcing lifecycle in plain language
  • Configure mode builds and edits routing strategies
  • Explain mode narrates routing logs and split behavior
  • Analyze mode charts fulfillment outcomes
  • Human-in-the-loop oversight
Why did this order split?Neither DC had all 4 items.Holding 1 day would save $6.ExplainSimulate

A fulfillment manager asks KIBO AI why an order split across two warehouses, reviews the natural language explanation, charts fulfillment frequency, and drafts a new Direct Ship strategy for review before activation.

These controls work together.

Define multi-variable strategy rules, balance location workloads, and clear slow-moving inventory, all under rules your business defines.

Leading Analysts Trust KIBO.

Leader in the IDC MarketScape: Worldwide AI-Enabled Order Orchestration and Fulfillment Applications for Retail and B2C, 2026 Vendor Assessment (IDC #US53010725, July 2026)
Leader in the IDC MarketScape: Worldwide AI-Enabled Order Orchestration and Fulfillment Applications for B2B and Manufacturing, 2026 Vendor Assessment
167% ROI, with payback in under six months
Leader in The Forrester Wave: Commerce Solutions, Q3 2026

FAQs

What is order sourcing and intelligent routing?
Order sourcing and intelligent routing automatically selects the best fulfillment location for each order using configurable business rules and real-time inventory, cost, and capacity data. Instead of sending every order to the same warehouse on a static priority list, an intelligent routing engine evaluates distance, shipping cost, inventory levels, and labor capacity for every order across B2C and B2B channels. The outcome is lower fulfillment costs, faster delivery promises, and fewer unnecessary split shipments.

See How KIBO Sources Each Order From the Best Location

See how KIBO replaces rigid static rules with dynamic, multi-variable sourcing across B2C and B2B sales channels.