Drop Ship
Dropshipping is a supply chain management strategy wherein the retailer doesn’t stock goods but instead forwards customer orders and shipping details to either the manufacturer, another retailer, or a wholesaler, who then ships the products directly to the customer.
Additionally, dropshipping can occur when a small retailer, typically selling in small quantities to the general public, receives a large single order for a product. In such cases, the retailer may arrange for the goods to be shipped directly to the customer from the manufacturer or distributor. Dropshipping is particularly common with expensive products. In any scenario, the retailer operates solely as a middleman without maintaining inventory.
We will explore how BizCentric offers a streamlined dropshipping experience.
Let’s consider a scenario involving a business that specializes in Computer Monitors. Suppose the retailer receives an order from a customer, ABC Inc., for 1000 DELL 24-Inch Monitors.
Drop Shipping in Action:
1. Item Configuration
- Setup Item with mandatory information keeping Maintain Stock disabled since there will be no stocking of this Item.
- Next, enable “Delivered by Supplier (Drop Ship)
- Set the Supplier with whom the Purchase Order will be raised for this orders fulfillment.
2. Sales Cycle:
- Create Sales Order with Customer, Item, Qty, Rate, Taxes and so on.
3. Order Fulfillment:
- From the Sales Order Document itself, you can create the Purchase Order for this shipment, track delivery, and bill the customer accordingly.