Distributed Logistics for Digital Commerce, Article 7: Distributed Order Management (DOM)

Imagine the power of being able to make money even after you’ve made a sale. 

That’s the idea behind distributed order management – often referred to as DOM. 

In this series of videos and articles, we’ve talked a lot about taking a yield management approach to inventory planning.  

Yield management focuses on how to get the most profit possible out of the inventory that is available right now. DOM is the key to accomplishing that because the objective of DOM is to route an individual order to the most cost-effective location for fulfillment. 

DOM is a point-in-time profit maximization tool.  When an order comes in, DOM is aware of all fulfillment options and all inventory available for sale wherever it might be located.  Then DOM automates evaluating all fulfillment scenarios before selecting the best combination of available inventory and fulfillment method in order to yield the highest profit while meeting the required delivery timeline. 

To learn more about distributed order management read the rest of this articleor watch the accompanying videoon LinkedIn.  To start at the beginning of the series, click here to view the first video Distributed Logistics for Ecommerce: A Change in Paradigm and Why it Matterson LinkedIn.