Drop Ship

Drop Ship

Drop shipping is a method of supply chain management where the retailer does not retain inventory on hand but instead passes customer orders and shipping information to the manufacturer, another retailer, or a wholesaler who then sends the products straight to the client.

Drop shipping can also happen when a small retailer, who generally sells to the general public in modest amounts, receives a lone, sizable order for a product. The store may arrange for the manufacturer or distributor to send the products straight to the client. Drop shipment is typical for pricey goods. In any instance, the store only serves as a middleman and does not hold any inventory. This post will demonstrate how drop-shipping is made simple with ERPNext.

Think about a company that sells computer monitors. Now, ABC Inc., a client, has placed an order with the store for 1000 DELL 24Inch Monitors.

Drop Shipping In Action:

1. Item Configuration

Configure the item with the necessary details while disabling Keep Stock because this item won't be stocked.
Then, turn on "Delivered By Supplier" (Drop Ship)
Choose the supplier with whom the purchase order for this order's fulfillment will be raised.

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2. Sales Cycle:

Make a sales order with the following details: customer, item, quantity, rate, taxes, etc.

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3. Order Fulfillment:

You can make the purchase order for this shipment directly from the sales order document, track delivery, and charge the customer accordingly.

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