What is drop ship in SAP SBO - SAP Business One?

SAP Term: drop ship

• Component: SBO

• Component Name: SAP Business One

• Description: A method by which a product is shipped directly from the vendor to the customer, without the company being required to hold inventory. In , to sell a product using the drop ship method, it must be allocated to a drop ship warehouse. The drop ship warehouse does not exist physically, but is the means by which designates a drop ship item.

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• Key Concepts: 
  Drop ship is a type of order fulfillment process in which the supplier ships the goods directly to the customer, bypassing the retailer. This type of order fulfillment is used in SAP Business One (SBO) to streamline the ordering process and reduce costs. 
  
  How to use it: 
  In SBO, drop ship orders are created by selecting the “Drop Ship” option when creating a sales order. The supplier is then notified of the order and will ship the goods directly to the customer. The customer will then receive an invoice from the supplier for payment. 
  
  Tips & Tricks: 
  When using drop ship orders, it is important to ensure that all necessary information is provided to the supplier, such as shipping address and payment terms. Additionally, it is important to ensure that the supplier has sufficient stock of the items being ordered. 
  
  Related Information: 
  Drop ship orders are often used in conjunction with other order fulfillment processes, such as direct shipping or third-party logistics (3PL). Additionally, drop ship orders can be used in conjunction with other SAP Business One features, such as inventory management and pricing rules.