1. Implementing Order Management
  2. Overview of Drop Ship in Order Management

Overview of Drop Ship in Order Management

Drop ship is a supply chain management technique where the seller relies on a supplier or contract manufacturer to build, store, and ship an item to your customer. You can use Order Management to automate this process.

a supply chain management technique where the seller relies on a supplier or contract manufacturer to build, store, and ship each sales order to the customer.

Note

  • Assume your customer places a sales order with you and you want to drop ship it.

  • Order Management sends a purchase request to Oracle Procurement, which places a purchase order with your supplier, then your supplier ships directly to your customer.

  • You provide a purchase order for the item and instructions that describe how to ship directly to the customer.

  • The supplier or contract manufacturer ships the item, and your company earns a profit.

For a more detailed flow, including screen prints of various applications that you use in the flow, see Order to Cash Drop Ship Order Flow (Doc ID 2278649.1).

Use drop ship to get results.

  • Reduce costs for holding inventory.

  • Let you supplier manage part of the supply chain, such as fulfilling and shipping the item, instead of you having to do it.

  • Forecast and plan for future demand.

  • Let your customer place an order with you, and you promise a ship date.

  • Automatically place an order with your supplier.

  • Let your supplier ship directly to your customer.

  • Receive notification from your supplier when your shipment has shipped.

  • Let the buyer modify the purchase order.

  • Combine more than one sales order into a single purchase order, then fulfill them together.

  • Modify a sales order after you create the purchase order.

  • Modify the sales order or purchase order after your supplier ships part of the purchase order.

  • Manage change orders.

Note

  • You can drop ship a standard item, configured item, kit, configuration model, pick-to-order item, or assemble-to-order item.

  • You can't drop ship a subscription or coverage.

  • Your customer can return a drop ship order only to your warehouse. Your customer can't return a drop ship order directly to the supplier. When you receive the item in the warehouse, use the Return Receipts action in Inventory Management so Inventory Management can deplete the received quantity.

  • You can't use a third party application in your drop ship flow.

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