Drop Ship SO Cycle in Oracle Order Management (Part 1/5)

1)What is “Drop Ship” ?

Drop Ship is a method of product delivery which the vendor accepts payment for an order, but the buyer receives the product(s) directly from the manufacturer. In a drop shipping arrangement, the vendor will be a middleman between the manufacturer and the buyer. The profit in this transaction is come from difference between the wholesale and retail price of the items sold.

2)Drop Ship in Oracle Order Management

Order Management  allows you to create Drop Ship SO which means you can receive orders for products that do not have in your inventory and you have a vendor provide the products directly to your customer.

3)Flow of  Drop Ship Sales Order

  (1). Create SO

  (2). Book SO

  (3). Progress SO

  (4). Release Purchase Order (Purchase Release concurrent)

  (5). Import Requisition / Auto create Purchase Order (Purchasing response)

  (6). Receive the material against purchase order

  (7). Invoice creation in AP

  (8). Invoice creation in AR

  (9). Complete line and Close Order

4)Benefit of Drop Shipment Order

Drop shipping is very useful for smaller retail shops, internet-only storefronts and those who primarily use catalogs for sales. A representative product may be displayed on the store's shelves or pictured in its catalog, but the actual product purchased may be sitting in a factory 1000 miles away. The following are some benefit of this method:

 + Do not need inventory

 + Reduce flow times

 + Elimination of losses on non-sellable products.

 + Reduced shipping to customer

 + No need packing and shipping costs.

 + Vary your product to customers.

OracleValues Team