5. Drop Shipment Drop shipment is a method of order fulfillment where the organization taking the order may or may not maintain their own inventory for the drop-shipped product, but fulfill their orders through 3rd party vendors who directly ship to the end customer ordering the product. For example, A orders item X from B B orders item X from C C ships Item X to A B bills A for the order, C bills B for the order
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9. B2B Flow diagram Supplier’s invoice PO Sales Order Customer Invoice Goods Shipped Goods Received Order processing Company Suppliers Customers
23. Drop Ship Flow diagram Supplier’s invoice PO Sales Order Customer Invoice Goods Shipped Order processing Company Suppliers Customers
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25. Drop ship process flow Enter the order Book the order ASN sent to Purchaser Send the PO To supplier Autocreate PO From requisition Supplier ships the goods Import requisition, Created with approved status Accept the logical reciept for the PO Receipt of goods into inventory Wait For dropship process I nvoicing Call OM for line Fulfillment with Shipped status Purchase release Populate PO requisition
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