White papers
OMS

Retail Order Routing in Order Management Systems

Explains how OMS order routing selects fulfillment locations using business rules to balance cost, speed, and inventory across DCs and stores.

Published
June 4, 2026
Read time
3 min read
Source

This vendor white paper defines retail order routing as the automated process of assigning customer orders to optimal fulfillment sources based on configurable rules. It covers rule prioritization for cost efficiency, inventory balancing, and omnichannel options such as store pickup. The document also quantifies decision complexity and lists required system capabilities for effective routing.

Key takeaways

Order routing uses business rules to select fulfillment locations from DCs, stores, and drop-ship sources

Retailers can face over 92 million daily routing permutations with 60 stores and moderate order volume

Flexible rule engines allow prioritization shifts for seasonal inventory reduction or margin protection

Routing to nearby stores supports click-and-collect and can increase in-store sales by up to 69%

Core capabilities include multi-condition rules, order splitting, next-best reassignment, and no-code configuration

Market overview

SCR methodology note

Vendor landscape

Leaders

Implementation considerations

Important consideration