When shipping from multiple warehouses, you'll need to choose how you would like orders to be assigned to each warehouse based on one of the three criteria:
- availability with receiving
- Option 1) Price
- The order will ship from the warehouse that is the cheapest no matter if the inventory is in stock or not. If the inventory is out of stock, the order will be moved to backordered and the order will ship the moment new inventory arrives.
- This option may slow down fulfillment should items become out of stock or backordered, but will ensure that you get the lowest possible cost on shipping every time for every order.
- Option 2) Availability (most commonly used)
- The order will ship from the warehouse that is cheapest, but also has inventory currently in stock.
- This is the fastest and most efficient warehouse assignment logic to get orders out ASAP.
- Option 3) Availability with Receiving
- The order will ship from the warehouse with the lowest shipping cost, and either has inventory in stock or is expecting inventory from a created receiving.
- This selection is a compromise between Option 1 & Option 2.
- If you create a receiving for new inventory in the cheapest location, the system will take into account the fact new inventory will be arriving and place the order on backorder until the inventory arrives.
- However, and there's no expected inventory in the cheaper location, it'll simply ship from the next cheapest warehouse that has available inventory.
*Below is a downloadable attachment with the infographic above (in JPG format)*