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Kibo Commerce Conceptual Guide: Fulfillment

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1. Strategic Overview

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Concept Definition

Fulfillment is the essential process in Kibo Commerce that manages everything required to get an ordered item from inventory to the customer, whether through shipping from a warehouse or pickup at a physical location, ensuring timely delivery or collection.

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Business Context

The Kibo Commerce platform uses Fulfillment as the operational backbone for unified commerce, executing complex omnichannel strategies (Ship to Home (STH), Buy Online Pickup In Store (BOPIS), Delivery) by bridging order capture and physical execution.

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Value Drivers

1. Workflow Agility: Configurable Business Process Management (BPM) flows allow rapid alignment of digital workflow states with complex, real-world operational procedures, supporting custom state transitions without reliance on external implementation schedules.
2. Performance Transparency: A centralized, real-time dashboard visualizes operational health against Service Level Agreements (SLAs), driving proactive management and immediate intervention in locations exhibiting at-risk performance.
3. Inventory Network Integrity: Fulfillers can temporarily or permanently exclude their location from automatic assignments for problematic products, preventing fulfillment failure loops and preserving Order Routing efficiency.

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Scope Statement

This guide details the structure of the shipment details, the centralized Fulfiller UI dashboard architecture (Map and List Views), the general framework of BPM flows and customization, and specific operational capabilities for managing shipment exceptions (Rejection, Splitting, Transfer, Substitution, Cancellation, and Location Blocking). It excludes specific implementation details for individual fulfillment methods or API endpoints.

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2. Core Concepts Explained

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2.1 What is Fulfillment?

Fulfillment serves as the execution layer that bridges the order capture phase with the physical delivery of goods.2 Functionally, it is a sequence of managed steps, encompassing internal logistics like verifying inventory, accurate item selection (picking), secure packaging, appropriate carrier assignment (shipping), and post-delivery support, particularly reverse logistics (returns). The platform’s fulfillment solution is integrated into the OMS core, acting as the execution mechanism for orders generated. The system must be capable of managing a diverse set of requirements based on the business model. For B2C businesses, the focus is typically on speed and convenience, meeting consumer expectations for fast delivery and seamless returns. Conversely, B2B fulfillment often involves handling larger, more complex orders, specialized packaging, compliance with industry standards, and maintaining long-term reliability over rapid speed.2 This need for flexibility is accommodated by the platform’s customizable fulfillment processes.

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2.2 Why Does Fulfillment Matter?

Fulfillment capabilities offer major business advantages by boosting operational efficiency, securing financial transactions, and ensuring customers have a positive experience.

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3. Functional Components & Configuration Deep Dive

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3.1 Component Architecture Hierarchy

The Fulfillment subsystem is an integrated flow:

1. Order Routing: This upstream component decides the optimal fulfillment location by evaluating factors like inventory availability, proximity, cost, and adherence to defined strategies.
2. BPM Engine (Business Process Management): This engine defines the specific, sequential state transitions (workflow) that a shipment must pass through based on its determined Fulfillment Type.
3. Shipment Details: The core digital record that carries the item details, assigned location, current status, and custom metadata.
4. Fulfiller UI: The operational execution interface used by fulfillers to process shipments and by managers to monitor network health.

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3.2 Business Process Management (BPM) Framework

BPM flows dictate the required chronological steps for a shipment to transition from its initial assignment to its completed state. Workflow Structure and Customization The platform provides out-of-the-box (OOTB) BPM flows for standard fulfillment types (such as Ship to Home , Buy Online Pickup In Store and Delivery). These default workflows contain specific, fulfillment-related steps that all shipments must transition through to be considered Completed. Customization Framework: While default flows are provided, Kibo supports advanced customization. Businesses can create custom Business Process Management flows by developing their own fork of Kibo’s fulfillment workflows repository. This modern framework eliminates the need to rely on the Kibo development team for custom BPM creation, allowing greater speed and autonomy. Once a customized BPM is created, it is uploaded and installed through the Kibo Dev Center, enabled via API, and subsequently executed through the Kibo Fulfiller UI, aligning technical workflows with unique operational needs.

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3.3 Configuration-Level Deep Dive

The platform provides granular control over key business decisions through configurable attributes related to financial integrity, omnichannel flexibility, and transfer management. Table 3.1: Shipment Configuration Attributes Deep Dive (Key Attributes)

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4. Key Capabilities and Business Applications

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Capability: Real-Time Operational Visibility via Fulfiller UI Dashboard

Functional Explanation: The Fulfiller UI dashboard provides real-time operational management using Fulfillment SLA thresholds (Compliant, At Risk, Non Compliant).4 Map View displays a geographical representation of locations, showing current shipment counts and color-coded threshold status upon selection.4 List View provides a detailed, filterable shipment grid indicating each shipment’s current SLA threshold status. Business Application Example:

• Industry: Enterprise Electronics Retailer
• Scenario: A manager needs to assess which DCs are struggling with high-value smartphone orders against a 3-hour SLA.
• Action: The manager navigates to the Map View, filters by the relevant SLA, and the map highlights two DCs in Red (Non Compliant), indicating failure to meet the processing deadline.4 This visualization enables immediate intervention.
• Outcome: Rapid, data-driven resource reallocation is enabled, resulting in the successful and timely completion of high-priority shipments and minimizing negative customer experiences associated with operational delays.

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Capability: Dynamic Inventory Shortage Resolution (Split Shipment)

Functional Explanation: If only partial inventory is available during the Validate Items in Stock step, the fulfiller can split the shipment. The available portion is processed, and the remaining unavailable quantity is automatically placed into a new child shipment for re-routing. During the split, the fulfiller gains the ability to choose to temporarily block further automatic assignments of the unavailable product(s) to their location until inventory is refreshed. Business Application Example:

• Industry: B2B Industrial Distributor (Complex pricing, bulk ordering)
• Scenario: A distribution center receives an order for 500 units but finds only 380 are accessible due to temporary maintenance.
• Action: The fulfiller validates the 380 available units, initiates a Split Shipment, and checks the Exclude location from future assignments checkbox for the solvent product, knowing the shortage is systemic.
• Outcome: The client receives the majority of their order immediately. The remaining units are successfully routed to an alternative fulfillment center, demonstrating maximum inventory utilization, while the exclusion ensures the constrained DC is not assigned similar tasks until maintenance is complete.

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Capability: System-Controlled Location Assignment Exclusion (Manage Blocked Locations)

Functional Explanation: The platform provides fine-grained control over Order Routing eligibility. A location can be temporarily blocked (until inventory refresh) or persistently blocked (via the Keep location excluded toggle, even after inventory refresh) from receiving automatic assignments for specific problematic products, with all excluded locations centralized on the Manage Blocked Locations page. Business Application Example:

• Industry: Direct-to-Consumer (DTC) Brand (Subscription models, customer acquisition focus)
• Scenario: A micro-fulfillment center repeatedly fails to process large product bundles due to space constraints, an issue that will not be immediately resolved.
• Action: The operations lead uses the Keep location excluded toggle during a shipment split for the large bundle product.5 The lead then verifies the center is strategically blocked for all future assignments containing the large bundles on the Manage Blocked Locations page.
• Outcome: The persistent block ensures Order Routing immediately bypasses the operationally constrained location for problematic, high-volume SKUs, guaranteeing higher initial fulfillment success rates and preventing the accumulation of failed shipments.

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Capability: Product Substitutions

• Functional Explanation: If the Substitutions feature is configured, it allows fulfillers to replace an ordered product with a similar, eligible substitute product during the fulfillment process when the original item is unavailable.16 This action is performed specifically at the Validate Stock step in the Fulfiller UI. The system displays eligible substitutes along with their available inventory at the fulfillment location.16 The process requires the fulfiller to enter a specific reason for the substitution. The platform also supports Pre-Fulfillment Substitutions, where Admin users (such as customer service representatives) can select a substitute and replace the original item on Pending orders or shipments in the Accept Shipment state, using advance knowledge of stock availability.

Business Application Example:

• Industry: B2B Industrial Distributor
• Scenario: A manufacturing client places a bulk order for 50 specialized chemical filters. During the Validate Stock step, the warehouse fulfiller identifies that only 40 units are available due to a recent quality control hold. An eligible equivalent substitute filter with 100 units in stock is displayed. The fulfiller performs a manual substitution for the remaining 10 units, recording the original item shortage as the Reason for Substitution.
• Action: The fulfiller replaces the unavailable quantity with the approved substitute product, ensuring the full order quantity is fulfilled in one shipment without delay.
• Outcome: The distributor fulfills 100% of the customer’s required volume, avoids a backorder scenario, secures full order revenue, and maintains business continuity and customer trust through proactive substitution management.

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Capability: Inter-Location Transfer and Reassignment

Functional Explanation: Shipments can be transferred or reassigned between different fulfillment locations within the network. This capability is used to acquire items that are locally unavailable at the assigned fulfillment location from a separate transfer location. The core goal of this functionality is to move the missing inventory to the final fulfillment location so that the original shipment can be fulfilled completely and shipped as a single unit. The system logs the details, including the identity of the location that initiated the action, in the shipment’s Internal Notes. For the location designated to receive the transferred goods, the Fulfiller UI provides a dedicated function, Receive Transfers, accessible via the navigation menu, allowing fulfillers to formally accept inbound shipments from another fulfiller location. Business Application Example:

• Industry: Enterprise Electronics Retailer
• Scenario: A small retail branch receives a BOPIS order for a specialized monitor, but upon checking, the inventory is missing. The customer is relying on the single pickup.
• Action: The branch manager initiates a Transfer of the missing monitor from a nearby warehouse that has verified stock. The system moves the shipment into a Wait for Transfer state. Once the item physically arrives at the branch, the staff uses the Receive Transfers page to formally accept it. With the inventory now consolidated, the original BOPIS shipment is fulfilled completely for the customer to pick up as a single transaction.
• Outcome: By utilizing the transfer capability to consolidate the unavailable item to the original fulfillment location, the business avoids splitting the order or forcing the customer to travel to a second location, resulting in a single, timely fulfillment event and a seamless customer experience

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Capability: Package Consolidation

Functional Explanation: Package consolidation provides the ability for fulfillers to group multiple separate shipments—which may originate from different customer orders—into fewer physical packages during the preparation and picking process. This feature is available for Ship-to-Home, Delivery, and Transfer shipments. Shipments must adhere to strict qualification criteria to be consolidated: they must be in the Ready state, assigned to the same fulfillment location, use the same fulfillment type, and be destined for the same B2C customer or B2B account at the same shipping address using the same shipping method. The Fulfiller UI assists by suggesting qualifying shipments, allowing the user to select up to 10 shipments for consolidation. A single tracking number is generated and shared across all consolidated items within that package. Business Application Example:

• Industry: Direct-to-Consumer (DTC) Brand (Subscription Models)
• Scenario: A customer places a spontaneous add-on order for a new product, followed 30 minutes later by the automated fulfillment run for their scheduled monthly subscription box. Both generate ready Ship-to-Home shipments assigned to the same regional distribution center and destined for the same customer via expedited shipping.
• Action: When the fulfiller initiates the first shipment, the Fulfiller UI alerts that the second shipment qualifies for consolidation. The fulfiller consolidates both shipments, grouping and picking them together under a single package and tracking number.
• Outcome: The brand achieves meaningful shipping cost savings by merging two packages into one and enhances the customer experience by ensuring both orders arrive together—delivering operational efficiency and improved delivery satisfaction.

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Capability: Pick wave

Functional Explanation: The Pick wave capability replaces standard sequential order line picking with optimized zone or wave picking, ensuring efficient execution within the fulfillment location. This sophisticated toolset is designed to group and prioritize shipments into waves based on predefined operational constraints and business logic. Shipments are grouped and optimized utilizing factors such as urgency and priority defined by Service Level Agreements (SLAs), Carriers, Shipment Methods , Customer Segments etc to coordinate the picking schedule. This ensures that the picking process maximizes efficiency and meets customer expectations for delivery speed. Business Application Example:

• Industry: Fashion & Apparel Retailer
• Scenario: A large, high-volume apparel retailer operating under a Ship-from-Store model must efficiently manage hundreds of daily online orders across multiple store locations. Each morning, the system leverages the Pick Wave capability to coordinate and optimize picking activities. Rather than generating a simple sequential order list, the system intelligently groups all ready shipments based on their Shipment Methods—for instance, consolidating all premium next-day delivery orders into a Priority Wave and organizing the pick route by inventory zones within the store.
• Action: Store fulfillers initiate the Priority Wave, enabling focused picking of high-value, time-sensitive shipments using zone-based guidance that minimizes travel time and increases throughput.
• Outcome: The retailer consistently meets stringent delivery SLAs by processing urgent shipments first, reducing the likelihood of late deliveries or penalty costs, and achieving greater operational efficiency across its distributed fulfillment network.

5. Platform Integration Map

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5.1 Upstream Dependencies

• Payment Object States: Fulfillment is blocked if order payments are unpaid or completely errored.
• Order Routing Strategies: Shipment assignment relies on active routing strategies defined upstream, including Sort Strategy (e.g., distance, quantity), Assignment Preference (single/multiple), and Scenarios (groups of eligible locations).
• Configurable Shipment Release: The time delay for shipment creation (Create Shipments _ Minutes After Order Submit) requires the Enable Configurable Shipment Release toggle to be active.

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5.2 Downstream Impacts

• External System Integration via SLA Events: The system can send event notifications when shipments are missing SLA targets, allowing external systems (WMS, custom dashboards) to trigger automated recovery workflows.
• Shipment Update Transmission (Marketplaces): Updates made in Kibo (carrier details, tracking numbers) are relayed to integrated applications like ChannelAdvisor, which transmits this detail to associated marketplaces and the customer.
• Fulfiller Returns Process: The Fulfilled status is typically a prerequisite state for initiating a Fulfiller Return, managing reverse logistics and refunds.

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5.3 Synergistic Features

Table 5.1: Fulfillment Synergistic Features (Key Synergies)

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6. Related Conceptual Guides

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For foundational knowledge, refer to:

• Concept Guides for Ship to Home, BOPIS and Delivery: Essential for understanding the structural categories (STH, BOPIS, Delivery) that define the required BPM state transitions executed by the fulfillment system.
• Inventory: This guide explains how item quantities are handled ensuring proper stock levels, on-hand counts, and product availability.
• Order Routing: This guide outlines how Delivery orders are integrated into the broader order management and routing workflows, ensuring shipments are efficiently routed and processed.

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To understand downstream impacts, refer to:

• Returns and Reverse Logistics: Details the integrated process for managing inventory restocking, financial refunds, and appeasements that occur subsequent to the fulfillment of a shipment.

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For complementary strategies, refer to:

• Fulfillment SLAs: Describes the necessary framework for defining and measuring time-based fulfillment performance, which is integrated into the Fulfiller UI dashboard.