Ship to Home (STH) Conceptual Guide
1. Strategic Overview
Concept Definition: Ship to Home (STH), also known as Direct Ship, is a core fulfillment method type where ordered products are shipped directly from a designated fulfillment location (such as a warehouse, distribution center, or retail store) to the customer’s specified delivery address. Business Context: STH is the foundational and most widely used fulfillment process within the Kibo Commerce platform, enabling retailers to meet the fundamental promise of e-commerce delivery. It is integral to inventory allocation and order routing. Value Drivers:- Expanded Inventory Reach: By enabling any location with inventory to act as a fulfillment point, STH allows retailers to leverage their entire network—including stores—to fulfill customer demand, thereby maximizing sell-through and reducing stockouts.
- Customer Convenience and Choice: It offers the most traditional and expected shipment option, catering to the vast majority of online transactions and providing the shipment directly to the customer’s preferred location.
- Operational Streamlining: The well-defined STH workflow integrates seamlessly with carrier services and tracking systems, which standardizes the package preparation and hand-off process across all fulfillment locations.
2. Core Concepts Explained
What is Ship to Home (STH)?
STH is a defined fulfillment process within the Kibo Commerce unified commerce platform. It is functionally characterized by the movement of goods from an internal inventory holding location to the external, customer-provided shipping address via a commercial carrier. It forms a distinct, state-driven workflow that dictates the steps a shipment must follow from initial order acceptance to final carrier handoff and fulfillment completion.Why Does Ship to Home (STH) Matter?
STH fulfillment is the mechanism that translates a committed order into a physical shipment, impacting several key areas of the retail operation:- Operational Benefit: The standardized workflow ensures that all fulfillment points—whether a centralized distribution center or a retail store—adhere to a consistent process for picking, packing, and labeling. This consistency reduces errors, minimizes the need for varied training, and speeds up the time from order placement to shipment, a key factor in customer satisfaction.
- Financial Benefit: By enabling distributed inventory sources (like stores) to perform STH, the retailer reduces the financial burden of markdowns on aging or excess stock while simultaneously utilizing the most optimal shipping location to minimize transit costs and delivery times.
- Customer Experience Benefit: STH allows the customer to receive their products directly at their home or preferred location. The structured process is designed to provide timely updates, including tracking information upon shipment completion, thereby setting accurate expectations and building trust in the brand’s delivery commitment.
Storefront Usage of STH
In the storefront experience, the Ship to Home method is most evident in the shipping selection phase of the checkout process.- Shipping Address Collection: The customer provides a ship to address, which is the foundational data point for an STH shipment.
- Fulfillment Option Presentation: Based on the customer’s address and the items in their cart, the system presents one or more STH-compatible shipping services (e.g., standard, express, next-day), each associated with a different cost and estimated delivery timeframe.
- Shipment Creation: Once the customer selects a shipping option and places the order, the system allocates the items to a fulfillment location via Order Routing. The resulting shipment is assigned the Ship to Home fulfillment type. The storefront itself facilitates the initial customer request that the fulfillment system then processes.
3. Functional Components & Configuration Deep Dive
Component Architecture
The STH process involves a coordination of the following key components:- Order: The high-level transaction object containing the line items, customer, and payment information.
- Shipment (STH Type): A subset of the order items, assigned to a single fulfillment location and designated for the STH workflow.
- Fulfillment Location: The physical site (warehouse, store) assigned to fulfill the shipment, which utilizes the Fulfiller UI or associated system integrations to process the steps.
- Order Routing Engine: Determines the optimal fulfillment location for the shipment based on rules considering, among others, inventory, proximity to the customer, and cost.
- Carrier Integration: External system used to generate shipping labels, tracking numbers, and manage carrier handoff.
Configuration-Level Deep Dive
| Configuration Name | Business Purpose | Impact and Trade-offs | Example |
|---|---|---|---|
| Fulfillment Method Type (Location) | Specifies that a particular location is eligible to process Ship to Home orders. | Impact: Enables the location to receive and fulfill STH shipments. Trade-off: Requires staff training and dedicated packing/shipping logistics at that site. | A Distribution Center’s profile must have Ship to Home selected to be considered for STH orders. |
| STH Consolidation Setting (Location) | Qualifies the Location to be the receiving location for transfers. Determines whether STH shipments with items from multiple source locations should consolidate at a centralized point before being shipped to the customer. | Impact: Reduces the number of packages the customer receives (improved CX) and can lower overall shipping costs. Trade-off: Adds an intermediate transfer step and time to the fulfillment cycle. | An Omnichannel Retailer enables this to prevent a customer from receiving two separate boxes for a single online order. |
4. Key Capabilities and Business Applications
Capability: Default Ship to Home Fulfillment Workflow
Functional Explanation: The default STH workflow is a series of defined shipment states in the Fulfiller UI that guides the fulfillment location associate through the entire process. The steps include: Accept Shipment, Validate Items in Stock, Print Packing Slip, and Prepare for Shipment (which culminates in shipment completion and carrier handoff). Each step ensures all required operational tasks are complete before moving to the next state. Business Application Example:- Industry: Fashion & Apparel Retailer
- Scenario: A customer places an order for three blouses and a scarf. Order Routing assigns the entire order as one STH shipment to a regional Distribution Center (DC). The DC associate sees the shipment in the Accept Shipment queue, acknowledges it, and then moves to Validate Items in Stock, using a scanner to confirm all four items are physically picked from the bin location. After printing the packing slip, they enter the box dimensions and weight in the Prepare for Shipment step, which automatically generates a shipping label. Upon clicking Yes, Complete Shipment, the DC is finished with the order, and the shipment moves to a Fulfilled state, resulting in faster order processing and reliable customer expectation setting for delivery.
Capability: Shipment Splitting upon Partial Stock
Functional Explanation: If, during the Validate Items in Stock step, a fulfillment location determines it has a quantity less than what the shipment requires, and STH Consolidation is not enabled, the system automatically splits the original shipment. The available items remain in the current shipment, which proceeds to be fulfilled. The unavailable items are immediately reassigned to a new shipment, which is then re-routed to a different, eligible location with the required inventory. Business Application Example:- Industry: Enterprise Electronics Retailer
- Scenario: An order for a laptop and a specialized accessory is assigned to a store for STH fulfillment. During stock validation, the store associate confirms they have the laptop but are out of the accessory. Because consolidation is off, the system splits the order. The original shipment with the laptop proceeds to be packed and shipped from the store. A new shipment for the accessory is instantaneously created and assigned to the nearest warehouse that does have stock. The business outcome is a faster fulfillment cycle for the readily available items and a reduced risk of customer cancellation for the order’s entirety, as both components are in motion promptly.
Capability: Transfer Shipments with STH Consolidation
Functional Explanation: When the optional STH Consolidation feature is enabled, a partial-stock scenario during Validate Items in Stock does not split the original shipment. Instead, the shipment enters the Waiting for Transfer state, and a separate Transfer Shipment is created. This child shipment moves the missing inventory from a different location to the original (consolidation) location. The parent STH shipment can only proceed to Print Packing Slip once the transfer shipment has been received and validated at the consolidation location. Business Application Example:- Industry: B2B Industrial Distributor
- Scenario: A client places a bulk order for various equipment parts that gets assigned to the main warehouse (the consolidation location). The warehouse only has 8 of the 10 required safety gloves. The system creates a Transfer Shipment for the 2 missing gloves from a nearby branch location. The main warehouse’s STH shipment is paused in Waiting for Transfer. Once the branch ships the gloves, and the main warehouse confirms receipt of the transfer, the original STH shipment is updated to full stock and proceeds. This ensures the B2B customer receives the large order in a single, consolidated delivery, which simplifies their receiving process and reduces their internal logistical overhead.
Capability: Automated Shipping Label Generation
Functional Explanation: As part of the Prepare for Shipment state, the Fulfiller UI integrates with configured carrier services. By entering required package details (carrier, box dimensions, and weight), the system automatically calls the carrier’s API to generate a shipping label and tracking number. This can also be manually overridden by entering a pre-acquired tracking number. The completion of this step, marked by clicking Yes, Complete Shipment, transitions the shipment to the Fulfilled state. Business Application Example:- Industry: Marketplace Operator
- Scenario: A third-party vendor operating on the marketplace platform receives an STH order assigned by Kibo’s routing logic. The vendor’s fulfillment team completes the package preparation, enters the custom box weight, and clicks the button to print the label. The system communicates with the vendor’s preferred carrier (e.g., FedEx) to print the label directly. This automation standardizes the carrier integration across all marketplace vendors, resulting in accurate and timely tracking information for the end customer, which is important for maintaining marketplace compliance and service level agreements.
Confirmation of Shipment
The system handles the confirmation of shipment in the following manner:- Preparation and Carrier Hand-off: During the Prepare for Shipment state, the fulfiller finalizes the package and obtains the tracking number (either automatically generated or manually entered).
- Completion of Fulfillment: When the fulfiller clicks Yes, Complete Shipment, the shipment state officially transitions to Fulfilled. This action is the formal, in-system confirmation that the items have been packed and handed over to the carrier for the final delivery.
- Customer Notification: The transition to the Fulfilled state triggers customer-facing notifications, which include the tracking number and link to the carrier’s tracking page. This is the mechanism by which the customer is informed that their order is on its way.
5. Platform Integration Map
Upstream Dependencies
| Dependency | Prerequisite Data/State |
|---|---|
| Inventory Availability | Accurate, real-time quantity on hand at the assigned fulfillment location. |
| Locations | Requires Locations be configured for Direct Ship Fulfilment |
| Order Routing Rules | Must be configured to identify and assign shipments to locations with the Ship to Home fulfillment type enabled. |
| Product Shipping Attributes | Products must be configured as shippable goods, not digital products. |
| Payment Authorization | The order must have an accepted or paid payment status to move the shipment into a fulfillable state. |
Downstream Impacts
| Impact | Enabled Capabilities/Process Changes |
|---|---|
| Invoicing and Payment Capture | The customer is typically charged or the payment is captured upon the completion of the STH fulfillment (moving to the Fulfilled state). |
| Customer Service | Enables customer service agents to view carrier tracking information and fulfillment notes for assistance. |
| Returns Processing | The shipment’s Fulfilled status is a prerequisite for initiating a standard customer return process. |
| Reporting and Analytics | Fulfillment metrics, such as time-to-ship and carrier performance, are recorded and available for analysis. |
Synergistic Features
| Complementary Capability | Combined Value Proposition |
|---|---|
| Order Routing Engine | Combining STH with robust routing ensures the shipment is assigned to the most strategically optimal location, minimizing cost and transit time, resulting in both financial and customer experience benefits. |
| Fulfillment Process Manager (BPM) | The BPM allows for customization of the default STH workflow with unique steps or logic, enabling complex business requirements like integrated quality checks or specific carrier hand-off protocols. |
| Product Attributes | Using required item identifier attributes (e.g., serial numbers) during the STH process ensures high-value or regulated products are tracked accurately from fulfillment to the customer, minimizing inventory discrepancies and liability. |
6. Related Conceptual Guides
For foundational knowledge, refer to:- Order Routing: This is a prerequisite because Order Routing is the mechanism that determines which location is assigned an STH shipment based on available inventory and business rules.
- Returns and Reverse Logistics: The completion of the STH process (moving to the Fulfilled state) is the necessary trigger for the standard returns window and process to become active for the customer.