Scenario: Implementing post-purchase fulfillment

Overview

The Optimization service relies on the receipt of real-time orders to learn and determine the most cost-effective option for fulfillment. To obtain the required orders, the Optimization service integrates with your Order Management System.

1. To integrate the two applications, synchronous integration is required where the order management system calls the Optimizer API in real time when the schedule process runs. In the evaluation phase, the Order Management System calls the idle version of the optimization API that can accept orders and process them asynchronously. This helps you to test the integration and understand the potential benefits of using the Optimization service before you switch to the synchronous mode of integration between the two systems.
2. The Optimization service processes the received request and asynchronously calculates Key Performance Indicators (KPIs).
3. A fulfillment manager can view the benefit and compare the accumulated KPIs by using Benefits report.
4. REST APIs that provide the data are also available for configuration, transaction, and reporting purposes.

Prerequisite data for Optimization service

Before you start implementing this integration pattern, evaluate, and prepare your configuration data that is used for optimization.

Reference integration pattern by using IBM Sterling Order Management System

This pattern enables real-time integration from IBM® Sterling Order Management System to the Optimization service and helps you obtain and deliver key insights on benefits that optimize the cost to serve.

1. Enable the ENABLE_SHADOW_SOLVER rule by using the Sterling Order Management System manageRule API. Use the following input for the manageRule API:

   <Rules DocumentType=“0001” OrganizationCode=“XYZ” RuleSetFieldDescription=“Enable Shadow solver for XYZ.” RuleSetFieldName=“ENABLE_SHADOW_SOLVER” RuleSetValue=“Y”/>

2. Enable the landed cost parameters that are considered for evaluation during order promising.
3. Implement the OMPGetExternalCostForOptionsUE user exit in your Order Management System to launch the Idle optimizer API by using an HTTP client library.
4. Calibrate the configuration data in the Optimization service by setting and activating the optimization business objectives and node balancing coefficients. At a minimum, you must configure Shipping Cost Optimization. For example, to balance your fulfillment network and to optimize shipping cost, set a weight of 100 for load-balancing cost and shipping cost.

   Refer to the user exit template in the OMPGetExternalCostForOptionsUE user exit template for the Optimizer API user exit template for the Optimizer API topic.

   For more information about this user exit, see the Sterling Order Management System Javadocs.

   To view an example that demonstrates how to call the Idle API, see the Sample Idle Optimizer API integration topic.

5. Specify the node-balancing values to balance your fulfillment network.

Once you are satisfied with the benefits that are accumulated by running Sterling Order Management System in Shadow Mode, you can switch to using the Optimizer API. You can then use the response to apply the Optimization service recommendations in Sterling Order Management System.

Evaluating KPIs

After you complete the steps mentioned, you can start seeing the potential benefits of using the Optimization service within Benefits report. Benefits report helps you to obtain a complete picture of the Key Performance Indicators (KPIs) and helps you aggregate and harmonize the data into a single analytical view. For example, you can view the net benefits that accrue for a specific period in Benefits report.

The following image displays the results of idle optimization for a time period in which 183,232 orders were evaluated. The average number of packages per order is reduced from 1.39 to 1.21 with an estimated shipping benefit of $271,671.

How Sterling Intelligent Promising accelerates Fulfillment Optimization

The optimization model helps you improve efficiency and balance your fulfillment network, reducing the total cost to serve and increasing profit margins.

The Optimization service uses data from multiple sources to give you an accurate cost picture. It calculates real costs, such as shipping and processing. It analyzes orders that are made by customers against shipping metrics, capacity, network constraints, and SLAs. The Optimization service then provides cost estimations based on each factor.

Order information must be transferred from an Order Management System by using the Optimizer APIs. The Optimizer APIs make optimized sourcing decisions for orders and reduce the total cost to serve in real time.