Order- Inventory Allocation

ShipHero is an amazing system that will automatically allocate inventory as orders are created if there is enough stock available. As a default, ShipHero leverages a FIFO (First-In, First-Out) order allocation methodology. It will assign inventory to the oldest orders in the queue first, ensuring that customers who ordered earliest receive their products before later orders are fulfilled. This method prioritizes the sequence in which orders were received.

For example, imagine a company receives 100 units of a popular item on Monday. Orders from Saturday, Sunday, and Monday are still pending due to stock shortages. With FIFO order allocation, the orders from Saturday will be filled first, followed by Sunday’s, and then Monday’s, regardless of any other new orders that might arrive after Monday. This process maintains fairness in order fulfillment, reducing backlogs and ensuring timely processing for customers who have been waiting the longest.

If you'd like to increase or decrease the allocation priority of an order, you have the ability to complete this on a order by order basis. To make this update you will go to the order page and under details select the "Allocation Priority". Here is how this is completed-

1. From app.shiphero.com, navigate to Orders > Manage Orders.

   

2. Select the individual order you would like update the allocation priority for.

3. While on the individual order page, on the right hand side you will see the Details section. In this section you will see the Allocation Priority Flag that can be updated-

4. Click Save to confirm the update

• High: This will ensure the order gets prioritized over other orders.

• Default: This means that the allocation is normal and the general allocation logic will apply.

• Low: This will ensure the order gets de-prioritized over other orders.

Note: If MWA (Multi-Warehouse Allocation) Rules are turned on for your account, the allocation priority will not take effect.