{"id":16706,"date":"2024-10-24T18:29:37","date_gmt":"2024-10-24T18:29:37","guid":{"rendered":"https:\/\/www.shipbob.com\/uk\/blog\/automated-order-routing\/"},"modified":"2025-11-17T23:14:48","modified_gmt":"2025-11-17T23:14:48","slug":"automated-order-routing","status":"publish","type":"blog","link":"https:\/\/www.shipbob.com\/uk\/blog\/automated-order-routing\/","title":{"rendered":"How Automated Order Routing Enhances Ecommerce Efficiency"},"content":{"rendered":"\n

Table of Contents<\/p>

** Minutes<\/p><\/div><\/div>\n

What is automated order routing? <\/a><\/p>\n\n\n\n

Key components of automated order routing <\/a><\/p>\n\n\n\n

The role automated order outing plays in ecommerce <\/a><\/p>\n\n\n\n

ShipBob\u2019s winning approach to automated order routing <\/a><\/p>\n\n\n\n

Automated order routing FAQs <\/a><\/p>\n<\/div>\n\n\n\n

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Key Takeaways<\/h2><\/span><\/div>
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1<\/p><\/div>

Automated order routing uses software to apply pre-determined rules, directing orders to the most suitable fulfilment centre based on factors like proximity and stock availability.<\/p><\/div><\/div>\n\n\n\n

2<\/p><\/div>

Key components of automated order routing include real-time inventory tracking, robust inventory management, and barcode data collection to ensure accurate and efficient order processing.<\/p><\/div><\/div>\n\n\n\n

3<\/p><\/div>

Automated order routing enhances ecommerce efficiency by optimising shipping routes, reducing costs, and improving customer satisfaction through faster deliveries and minimised backorders.<\/p><\/div><\/div>\n\n\n\n

4<\/p><\/div>

ShipBob’s proprietary software integrates with major ecommerce platforms, automating order routing across its global fulfilment network to streamline operations and reduce shipping times and costs.<\/p><\/div><\/div>\n<\/div><\/div>\n\n\n\n

If your ecommerce brand uses a single fulfilment centre, all of your orders are fulfilled in the same warehouse. But what if you operate two or more fulfilment centres? How do you decide which orders get fulfilled where?  <\/p>\n\n\n\n

While there are many ways to tackle order routing, there\u2019s usually a logic to it that lets you maximise efficiency, shorten an order\u2019s transit time, and minimise shipping costs<\/a>. To apply that logic quickly and effortlessly, many brands leverage an automated order routing system.  <\/p>\n\n\n\n

In this article, we\u2019ll break down what automated order routing is, its role in ecommerce, and how expert supply chain partners like ShipBob can help you implement it in your brand\u2019s operations.  <\/p>\n\n\n\n

What is automated order routing? <\/h2>\n\n\n\n

Automated order routing (or AOR) is a piece of ecommerce automation<\/a> in which software uses pre-determined logic or routing rules to automatically send each order to its ideal fulfilment location.  <\/p>\n\n\n\n

When a brand uses an automated order routing system, they configure a rule-based algorithm that evaluates each order based on certain characteristics or circumstances, and which then determines the fulfilment centre the order is sent to.  <\/p>\n\n\n\n

For instance, orders may be routed to a certain fulfilment centre based on proximity, which will speed up the delivery process. In some cases, orders may be routed to specific warehouses based on which locations have the order items in stock to minimise order splitting and improve customer satisfaction.  <\/p>\n\n\n\n

Automated order routing goes hand-in-hand with automated order processing<\/a>, where order information is collected and processed by the order management<\/a> system. During this process, the system can also be configured to determine the best place to route each order. <\/p>\n\n\n\n

Key components of automated order routing <\/h2>\n\n\n\n

Automated order routing systems are complex and require coordination across many different technologies and data sources. Here are just some of the key elements that enable automated order routing for an ecommerce brand.  <\/p>\n\n\n\n

Real-time inventory tracking <\/h3>\n\n\n\n

Automated order routing systems rely on real-time inventory tracking<\/a> functionality to achieve the most up-to-date data on stock levels<\/a> across multiple fulfilment centres. This level of visibility allows the system to make routing decisions according to stock availability. <\/p>\n\n\n\n

For instance, say an order would normally be routed to the fulfilment centre closest to its final destination, but that fulfilment centre has run out of the items in that order. Rather than putting the customer on backorder<\/a> until restocking, the automated order system can see in real-time which locations do have the item in stock, and route the order to one of those. That way, the order flow remains uninterrupted. <\/p>\n\n\n\n

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\u201cShipBob\u2019s dashboard is super intuitive and easy to navigate. I love that you can view orders based on when they are processing, completed, on hold, and in other stages. It is super helpful for us to have that and track the order every step of the way. We have a Shopify store but do not use Shopify to track inventory. In terms of tracking inventory, we use ShipBob for everything \u2014 to be able to track each bottle of perfume, what we have left, and what we\u2019ve shipped, while getting a lot more information on each order.\u201d<\/p>\n\n\n\n

Ines Guien, Vice President of Operations at Dossier<\/a> <\/p>\n<\/blockquote>\n\n\n\n

Robust inventory management <\/h3>\n\n\n\n

Automated routing systems have powerful inventory management<\/a> features to help you keep enough of the right SKUs<\/a> in the right locations to optimise order workflows. These features include reorder point<\/a> notifications and automatic reordering to ensure that you\u2019re stocking up on time. <\/p>\n\n\n\n

Additionally, some systems even show you how to distribute your inventory across your fulfilment network optimally. This helps you balance your inventory levels so that you don\u2019t experience sudden stockouts<\/a> or accidentally overstock certain warehouses. <\/p>\n\n\n\n

Barcode data collection <\/h3>\n\n\n\n

The real-time inventory visibility that AOR relies on is built on a strict barcode scanning system. Whenever warehouse associates move a piece of inventory \u2013 whether it\u2019s to receive it, stow it, or pick it \u2013 the associate scans the barcode on the inventory unit, which is then recorded through an inventory management system<\/a> (or IMS).  <\/p>\n\n\n\n

This data collection procedure helps you keep track of inventory locations and levels throughout the supply chain, improve inventory control<\/a>, and keep your inventory records<\/a> accurate, so your AOR is always working with correct information and can avoid a \u201cgarbage in, garbage out\u201d scenario.  <\/p>\n\n\n\n

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\u201cWe interviewed around a dozen different SaaS providers before ShipBob was on our radar, and I felt like none of them met our needs. They were all missing key features that you can\u2019t run a business without. <\/p>\n\n\n\n

For instance, using universal product code (UPC) verification \u2014 the process of scanning a product\u2019s barcode to track inventory as it moves through fulfilment \u2014 was incredibly important to us. Half of the vendors\u2019 systems could only do UPC verification on pick or pack, but not both, which leaves you prone to errors. <\/p>\n\n\n\n

Then, I stumbled across ShipBob. From the very first call, I thought, \u201cThis is it.\u201d ShipBob is a global fulfilment platform that wrote its own software instead of using someone else\u2019s, and uses it to run their own outsourced fulfilment service. That was definitely a solution we could trust, and the solution we wanted.\u201d<\/p>\n\n\n\n

Ben Tietje, Co-Founder and CEO of Earthley<\/a> <\/p>\n<\/blockquote>\n\n\n\n

The role automated order outing plays in ecommerce <\/h2>\n\n\n\n

When properly deployed, an automated order routing system is a win-win for both you and your customers. Let\u2019s break down how automated order routing impacts ecommerce brands efficiency, costs, and customer experience.  <\/p>\n\n\n\n

AOR massively upgrades the customer experience <\/h3>\n\n\n\n

Customers today expect quick shipping for free \u2013 or at least for very little cost. Automated order routing optimises the shipping and order fulfilment<\/a> process to ensure orders are routed to the fulfilment locations that will result in the fastest, most cost-effective delivery experience possible.  <\/p>\n\n\n\n

For instance, orders may be routed to the fulfilment centre nearest to the end customer to shorten the distance a package must travel, thus speeding up shipping while reducing shipping costs. This directly facilitates timely deliveries and, in many cases, enables the affordable (or even free!) 2-day shipping<\/a> that customers love. <\/p>\n\n\n\n

An AOR system can also prevent backorders and delays that annoy customers and hurt brand loyalty. If the ideal fulfilment centre is out of stock, AOR can split a shipment<\/a> between two or more fulfilment centres at a brand\u2019s discretion to ensure that the customer\u2019s order doesn\u2019t get delayed until restocking. While this is a bit more costly in the short term, this strategy can help brands retain customers and encourage repeat purchases later on.  <\/p>\n\n\n\n

Streamline operations with smarter resource allocation <\/h3>\n\n\n\n

With AOR systems enabling automatic routing, you reduce the need for manual work and allocate your resources more optimally.  <\/p>\n\n\n\n

Rather than being your own order router and spending hours determining where each and every order should go, an AOR system can send orders to the most optimal fulfilment locations in an instant. Automating routing also means that your team is free to focus on tasks and activities that require human attention, which makes the best use of their labour hours and helps you streamline your operations. <\/p>\n\n\n\n

These time and effort savings combined with the cost savings from faster and cheaper deliveries (as well as the potential for increased revenue from a better customer experience) make smart order routing an efficient \u2013 and lucrative \u2013 choice for ecommerce brands.   <\/p>\n\n\n\n

ShipBob\u2019s winning approach to automated order routing <\/h2>\n\n\n\n

As an expert supply chain and fulfilment platform for ecommerce brands, ShipBob\u2019s proprietary warehouse management software<\/a> automatically routes orders across our network of dozens of global fulfilment centres for you. Whether you outsource fulfilment<\/a> to ShipBob or leverage our WMS<\/a> in your own warehouse, here are some of the ways ShipBob can help you optimise your inventory and order routing.  <\/p>\n\n\n\n

ShipBob integrates with top ecommerce platforms <\/h3>\n\n\n\n

ShipBob\u2019s technology seamlessly integrates with leading ecommerce platforms (including Shopify<\/a>, BigCommerce<\/a>, WooCommerce<\/a>, etc.), so your orders are automatically pulled from your online store, processed, and sent to the optimal fulfilment centre. ShipBob also has a Developer API<\/a> if your brand requires a custom integration.  <\/p>\n\n\n\n

ShipBob can also process all your orders across all your different sales channels, including marketplaces like Amazon and Walmart Marketplace and B2B retail partners<\/a> like Target, Macy\u2019s, and Nordstrom for effortless omnichannel fulfilment.  <\/p>\n\n\n\n

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\u201cBecause we’ve been able to utilise ShipBob to fulfil all of our orders as a mini-ERP \u2013 including integrating directly to Amazon, multiple B2B channels, and our Shopify store \u2013 everything is so streamlined.\u201d<\/p>\n\n\n\n

Tyler McCann, Co-Founder of Taste Salud<\/a> <\/p>\n<\/blockquote>\n\n\n\n

ShipBob tracks inventory and orders in real-time <\/h3>\n\n\n\n

Through ShipBob\u2019s dashboard, you can achieve the real-time inventory visibility that you need to make informed decisions about restocking, allocation, product catalogue management<\/a>, and more. 
Businesses looking to enhance their technological capabilities without building an in-house team might outsource web development<\/a> to create sophisticated inventory tracking interfaces.   <\/p>\n\n\n\n

Our warehouse associates use barcode scanning technology to track each piece of inventory as it moves through your supply chain. Our software then updates inventory levels in real-time, so you can always view the most up-to-date inventory counts at a glance and quickly determine which locations are running low on stock. This can be used to inform your distribution strategy, helping you balance your inventory levels to maintain optimal stock at various locations.  <\/p>\n\n\n\n

You can also access key inventory and order analytics, like: <\/p>\n\n\n\n