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Kibo Commerce Conceptual Guide: Delivery Fulfillment

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1. Strategic Overview

Concept Definition: Delivery is an out-of-the-box fulfillment method in the Kibo Commerce platform that enables the routing, preparation, and dispatch of shipments directly from designated retail locations or distribution centers to the customer’s specified shipping address. Business Context: Delivery serves as a key component of a unified commerce strategy.1 Positioning alongside Buy Online Pickup In Store (BOPIS) and standard Ship to Home (STH), Delivery allows retailers to fully leverage their distributed inventory network, including physical stores, to execute customer delivery, optimizing fulfillment for factors such as speed, cost, and stock clearance across the entire commerce ecosystem. Value Drivers:

1. Enhanced Customer Choice and Reach: Delivery expands fulfillment options beyond standard warehouse shipping, allowing physical retail locations to serve as micro-distribution centers. This capability utilizes existing infrastructure to increase the speed and convenience of order fulfillment for the end customer.
2. Optimal Inventory Utilization and Markdown Reduction: Through advanced Order Routing logic, Delivery assignments can strategically prioritize locations based on inventory attributes, such as age or low velocity. The goal is to maximize stock turnover, ensuring the retailer minimizes the capital required to hold aging stock and reduces the need for subsequent markdowns.
3. Preservation of Customer Experience via Consolidation: The Delivery process supports transfer-based consolidation, which proactively gathers fragmented inventory into a single shipment at a centralized location.3 This mechanism prevents the customer inconvenience associated with multiple packages from a single order, guaranteeing a unified delivery experience.

Scope Statement: This conceptual guide details the core configuration prerequisites for Delivery at the product and location levels, explains the operational steps of the Default and Consolidation fulfillment flows, outlines the system’s support for current, backordered, and future-dated shipments, and specifies the operational controls available via Order Routing Scenarios and package management capabilities. This guide maintains a strict focus on functional description, explicitly excluding deep technical API documentation, specific Business Process Manager (BPM) implementation steps, and quantitative performance assertions.

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2. Core Concepts Explained

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What is Delivery Fulfillment?

Delivery Fulfillment is a distinct fulfillment method within Kibo Commerce’s Order Management System (OMS). While it closely aligns with the traditional Ship-to-Home (STH) process during early stages such as picking and stock validation, it differentiates itself through enhanced preparation, dispatch, and delivery confirmation steps designed for distributed fulfillment networks. This model enables brick-and-mortar stores to serve as last-mile fulfillment hubs, supporting faster and more localized delivery operations. Functional Definition and Role in the Platform Ecosystem:
Delivery Fulfillment serves as the operational link between physical inventory locations and the customer’s delivery destination. It leverages Kibo’s advanced Order Routing framework to assign the optimal fulfillment location based on configurable business rules—such as proximity, inventory availability, or fulfillment efficiency. Throughout the shipment lifecycle—from order acceptance and picking to packing, dispatch, and final delivery confirmation—the process is centrally managed and tracked through the Fulfiller User Interface (UI), ensuring complete visibility and control across all delivery operations.

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Why Delivery Matters

The strategic adoption of Delivery fulfillment drives benefits across three key dimensions: operations, finance, and customer experience. Operational Efficiency: Delivery requires explicit, granular control, mandating configuration at both the location level and the product level.1 This dual requirement ensures that only fulfillment locations operationally equipped with the necessary delivery infrastructure and trained staff are included in the routing pool, and that only products suitable for this fulfillment method are offered.1 This mechanism enforces strong operational discipline, minimizing the risk of fulfillment failures often associated with decentralized logistics and thereby streamlining internal processes and reducing exceptions. Financial Impact through Optimized Location Assignment: The Delivery fulfillment method is a key enabler for dynamic financial strategies, leveraging the platform’s distributed inventory visibility. Delivery specifically supports the execution of orders assigned to locations based on strategic goals, such as maximizing inventory turnover. By allowing Delivery orders to be routed to locations holding lower Life to Date (LTD) inventory values for the order items (a process supported by the Velocity sort strategy), the fulfillment process accelerates the movement of aging stock. This direct action through Delivery minimizes the capital tied up in slow-moving inventory and consequently reduces the need for markdowns, transforming the Delivery method from a logistical necessity into a direct financial optimization tool. Customer Experience through Speed and Consistency:Delivery is specifically designed to optimize delivery speed by leveraging dynamic location assignment, where the fulfillment node geographically closest to the customer is prioritized via order routing logic. Important for delivery consistency is the optional feature of Delivery Consolidation. This mechanism addresses inventory fragmentation by using internal transfers to gather all required items into a single, centralized location before dispatching the complete order. This preemptive action ensures the customer receives a unified delivery, which significantly enhances reliability and reduces potential support inquiries related to split or partial shipments. While the location assignment must adhere to strategic trade-offs defined in the Order Routing configuration (e.g., balancing speed vs. inventory velocity), the Delivery process’s primary goal remains customer-centric: enabling rapid fulfillment from a decentralized network

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3. Functional Components & Configuration Deep Dive

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Component Architecture

The Delivery fulfillment model is built upon the interaction of key architectural components that define eligibility, routing decisions, and operational execution:

1. Catalog/Product Configuration: This component dictates which products are eligible for purchase using the Delivery fulfillment method.
2. Location Configuration: This component governs which physical fulfillment nodes (e.g., stores, regional distribution centers) are operationally capable and authorized to perform Delivery fulfillment.
3. Order Routing Logic: This key layer determines the optimal assignment of the order to a location and manages the associated process flow logic, including Consolidation and Transfer management.
4. Shipment workflow States: This component tracks the specific progression of the order within the Fulfiller UI, providing staff with clear guidance through the necessary operational steps, including preparation, dispatch, and final confirmation.

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Configuration-Level Deep Dive

Configuration settings provide the granular control necessary to define the operational behavior, eligibility, and strategic prioritization of Delivery fulfillment. The following attributes and settings are vital for controlling the Delivery process: Delivery Configuration Attributes and Business Impact

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4. Key Capabilities and Business Applications

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Capability 1: The Delivery Default Fulfillment Flow (Current Inventory)

Functional Explanation: The Delivery Default Flow provides the standard process for orders fulfilled using current, available inventory. After assignment and acceptance, the process follows standardized steps: Print Pick Sheet 1, Validate Items in Stock, and Print Packing Slip.1 The unique Delivery steps begin with Prepare for Delivery, where mandatory actions occur, including completing any required Assembly (Fulfillment Service Items) 1, entering final package details (dimensions and weight), and printing delivery labels. The fulfillment associate then initiates Dispatch by clicking Handover to Delivery Provider. The final step is Delivery Confirmation, where the fulfiller manually clicks Order Was Delivered (or confirmation is received automatically), marking the shipment Complete. Business Application Example:
Industry: Enterprise Electronics Retailer
Scenario: An electronics retailer receives an order for a smart home device requiring initial software setup and battery installation (a fulfillment service item) before shipping. The order is routed to a specialized fulfillment lab location.
The lab team proceeds through the default flow. During the Prepare for Delivery step, the fulfillment technician executes the required assembly and setup service. They confirm the final package specifications, generate the delivery label, and click Ready for Dispatch. After carrier collection, upon notification of delivery, the system (or staff) confirms the completion. This process ensures specialized services are integrated into the standard timeline, resulting in fewer customer support calls regarding complex initial setup and a verified final delivery status.

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Capability 2: Delivery Consolidation Flow (Utilizing Transfers)

Functional Explanation: When Delivery Consolidation is enabled and the selected fulfillment location does not have the complete inventory, the system initiates an internal transfer to source the missing items from another location. During this process, the Shipment is temporarily placed on hold until all required items arrive at the destination. Once the transfer is completed, the order is released for packing and shipped to the customer as a single, consolidated delivery. Business Application Example:
Industry: B2B Industrial Distributor
Scenario: A manufacturing client places an urgent order for five high-pressure valves and ten specialized gaskets, routed to a regional distribution center. The center only has the valves.
Because Delivery Consolidation is configured for B2B orders, Kibo initiates a transfer request for the ten missing gaskets from the central depot. The client’s order immediately moves to the Waiting for Transfer status. This action ensures that the customer receives the full order in a single package. This guarantees compliance with the B2B client’s strict, single-delivery receiving protocols and simplifies their inbound receiving process, resulting in streamlined receiving and fewer delivery discrepancies for the client.

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Capability 3: Management of Future Delivery Shipments

Functional Explanation:
Delivery shipments can be planned and scheduled for fulfillment based on future inventory availability and confirmed delivery timelines. This capability leverages Future Inventory allocation logic to allocate items against projected incoming stock, ensuring that shipments can be prepared and delivered once inventory becomes available within the defined Future Date Limit. For a shipment to transition into a Future status, Future Inventory must be enabled at both the product and site levels. Once validated, a new shipment is created with a Future status, representing a confirmed and planned delivery commitment to the customer. Business Application Example:
Industry: Marketplace Operator
Scenario**:** A marketplace vendor offers made-to-order furniture with an estimated delivery window based on manufacturing lead time. When a customer places an order, the system checks projected inventory availability and confirms that materials and components will be available within 45 days. The system then creates a Future Delivery Shipment linked to the planned completion and dispatch date. This functionality enables the marketplace to manage forward delivery promises efficiently—providing customers with clear, reliable delivery expectations while maintaining visibility and control over future fulfillment activities.

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Capability 4: Package Consolidation of Multiple Delivery Shipments

Functional Explanation: Package Consolidation is an optional feature available to Delivery shipments that allows fulfillment staff to group up to 10 qualifying shipments into shared physical packages.4 Shipments qualify for consolidation if they are in the Ready state, assigned to the same fulfillment location, destined for the same B2C customer or B2B account, and utilize the same shipping address and fulfillment type.4 During the Prepare for Delivery step, the fulfiller must manually toggle the Consolidate Packages across Shipments option. This enables them to associate the contents and packing slips of multiple distinct shipments with shared packages, resulting in a single set of tracking numbers for the combined packages. Business Application Example:
Industry: Fashion & Apparel Retailer (Omnichannel)
Scenario: A customer places a late-night order for shoes and then, an hour later, places a separate order for accessories, both routed for Delivery from the same nearby retail store.
When the fulfillment associate processes the first order, the system displays Package Consolidations Available. The associate selects the second order for grouping. After picking both orders, during the Prepare for Delivery step, they pack all items into one shipping container and utilize the consolidation toggle. This process generates only one shipping label for the combined box, reducing the overall carrier fees incurred by the retailer and guaranteeing the customer receives both purchases simultaneously, which reduces logistics cost and improves customer convenience.

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Capability 5: Dynamic Location Selection via Distance Routing

Functional Explanation: Delivery fulfillment utilizes the sophisticated Order Routing framework, which allows configuration of Scenarios to prioritize candidate locations using the Distance Sort Strategy.1 This process involves the system selecting the location that is geographically closest to the shopper’s specified address. This routing process can also power the storefront experience by displaying the optimal fulfillment location based on the shopper’s address or zip code. Business Application Example:
Industry: Direct-to-Consumer (DTC) Brand
Scenario: A high-growth DTC brand focuses intensely on rapid delivery times to new customers to build loyalty. An order is placed from a metropolitan area near three potential fulfillment points.
The brand’s Order Routing Strategy utilizes Distance as the primary sorting metric for all Delivery shipments. Based on the customer’s exact geo-location, the order is automatically assigned to the brand’s local micro-fulfillment center (MFC) located 5 miles away, rather than the main distribution center 150 miles away that uses slower transit times. This strategy ensures the fastest possible delivery times for key customer acquisition orders, directly supporting loyalty initiatives and mitigating early subscription churn risk.

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Capability 6: Exclusion and Mitigation during Stock Validation

Functional Explanation: The Validate Items in Stock step is a mandatory audit point in the Delivery flow.1 If the fulfillment location identifies that not all items are available and Delivery Consolidation is not enabled, the system presents mandatory actions.1 The fulfiller must choose to either Split the shipment (if partial inventory is available) or Reassign the entire shipment to a new location with full inventory.1 Additionally, the Fulfiller UI offers the ability to temporarily Block Location Assignments during the validation process. This capability prevents the location from receiving further assignments for products that have been identified as short, ensuring efficient inventory allocation across the network. Business Application Example:
Industry: Enterprise Electronics Retailer
Scenario: A regional store is assigned a Delivery order for two specialized gaming keyboards. Upon picking, the associate finds they are critically short on one keyboard model due to an unlogged internal sale.
Since consolidation is not configured for these high-turnover items, the associate must choose to either split the shipment (delivering one keyboard now and one later) or reassign the full order. They choose to reassign the full order to the central warehouse to maintain the customer’s expectation of a single delivery. Concurrently, they utilize the Blocking Location Assignments option to temporarily pull the store out of the routing pool for this specific keyboard model, preventing further assignment failures until the next inventory shipment arrives.

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Capability 7: Preparation and Assembly of Fulfillment Service Items

Functional Explanation: The Prepare for Delivery state is the designated operational stage within the Delivery process where value-added services, formally defined as Fulfillment Service Items (such as specialized finishing or assembly), must be executed.1 This sequencing guarantees that the product is fully prepared, correctly assembled, packed, and accurately labeled according to the customer’s request and all carrier requirements (package dimensions and weight entry are integral to this step) prior to the handover for dispatch. Business Application Example:
Industry: B2B Industrial Distributor
Scenario: A B2B client orders customized equipment that includes a specific finishing treatment service (a Fulfillment Service Item) requiring specialized equipment only available at a dedicated service center.
The order is routed and accepted by the service center. Once all components are picked, the shipment enters the Prepare for Delivery step. The fulfillment team performs the custom finishing treatment. Upon completion, they update the final package specifications, including the new weight and dimensions post-treatment, and print the required specialized freight label. This capability ensures that the service fulfillment is tightly integrated into the delivery timeline, guaranteeing quality control and accurate shipment manifesting before carrier handover.

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5. Platform Integration Map

The effectiveness of Delivery fulfillment is highly dependent on its seamless integration with core platform systems, acting as a data consumer for prerequisites and a data producer for process outcomes.

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Upstream Dependencies

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Downstream Impacts

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Synergistic Features

1. Delivery Consolidation via Transfers: Prevents shipment fragmentation by enabling the internal transfer of missing inventory, guaranteeing single package delivery.
2. Package Consolidation: Allows staff to physically group multiple, fully qualified shipments destined for the same customer into shared packages, optimizing logistics spend.
3. Pick Waves: Enables the inclusion of Delivery shipments in high-efficiency, multi-order picking batches, significantly improving labor output and speed.
4. Fulfillment Service Items (Assembly): Integrates the execution of value-added services as a mandatory step within the fulfillment process (Prepare for Delivery).
5. Suggest Candidates API / Extensions: Enables dynamic calculation and suggestion of the optimal fulfillment location on the storefront based on the shopper’s address.
6. BPM Customization: Allows configuring a specific Business Process Manager workflow at the location group level to customize the internal process steps for Delivery shipments.

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6. Related Conceptual Guides

For foundational knowledge, refer to:

• Fulfillment: Provides the necessary background to understand the core differences and similarities between Delivery, Ship to Home (STH), and Buy Online Pickup In Store (BOPIS), establishing the context for the Delivery type within the broader OMS architecture.

To understand downstream impacts, refer to:

• Ship to Home (STH): Details the initial fulfillment steps (picking, stock validation) that are shared with the Delivery process. Consulting this guide helps users recognize where the Delivery process introduces specialized, final-mile steps (Prepare, Dispatch, Confirmation).

For complementary strategies, refer to:

• STH and Delivery Consolidation: Offers detailed instructions and background on the configuration and management of the transfer-based consolidation logic. This guide explains how the system manages the Waiting for Transfer state to ensure the goal of a single, unified customer shipment is achieved.
• Order Routing: Provides in-depth guidance on configuring scenarios, filters, and assignment logic. This is vital for strategically determining how Delivery orders are assigned based on key metrics such as Distance, Velocity, and inventory availability, enabling fine-tuned operational strategy.
• Package Consolidation: Explains the functional capability to group multiple distinct shipments for the same customer into shared physical packages. This supports efficiency strategies aimed at reducing carrier costs when a customer has generated multiple open Delivery orders.