Setting Up Customer-Specific Sourcing Logic

Customer segments have different service-level expectations, order patterns, and purchasing behaviors. To meet these needs while ensuring operational efficiency, the sourcing system must apply dynamic rules that adapt fulfillment strategies based on customer tier, order value, or campaign timing.

Key constraints to address include:

• Tier-specific service priorities: Higher-tier customers (e.g., Gold, Silver) may receive faster fulfillment or have access to additional inventory sources compared to lower-tier customers (e.g., Bronze).
• Order value segmentation: Large and small orders within the same customer tier may require different sourcing logic to optimize costs and service levels.
• Promotional or seasonal priorities: Certain sourcing rules may apply only during specific periods (e.g., monthly-based campaigns).
• Distance limitations: Even for high-priority customers, fulfillment must respect distance thresholds to maintain service quality.

Why It Matters

Dynamic sourcing logic provides an opportunity to incentivize loyalty and repeat business. Prioritizing fulfillment by Customer Tier rewards loyalty with an enhanced service promise, and ensure that fulfillment resources are allocated where they have the greatest impact.

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Explanation through an Example

A retailer in the United States organizes sourcing logic around customer tiers: Gold, Silver, and Bronze. Each tier has defined priorities, distance rules, and capacity limits, with special handling for high- and low-value orders within the Silver tier.

Sourcing priority

• Priority is determined first by promotional eligibility, then by customer tier, and finally by specific order characteristics such as order monetary value
• Higher-tier customers have access to more varied fulfillment sources
• Sourcing respects distance-based prioritization, Location Daily Capacity rating, and real-time inventory levels