Drop-shipping is to send purchased goods directly from the vendor or manufacturer to a customer or retailer with no immediate distributor but billed through a third party. It is a retail fulfillment method where a store doesn’t keep the product it sells in stock. Instead, when a store sells a product, it purchases the item from a third party and shipped directly to the customer on behalf of retailers. This process removes the need for a warehouse/distribution center and can save a considerable amount of money for the retailer.
Here, EDI plays a crucial role as it enables all order documentation to be sent between the third-party drop-ship vendor and retailer quickly and efficiently. It enables a seamless order lifecycle.
Typical EDI order documents exchanged include EDI 850 (purchase order), 855 (purchase order acknowledgment), 856 (advance shipment notice), 810 (invoice), etc. Electing documents to transmit electronically eliminates error-prone emails, phone/fax messages from the order fulfillment lifecycle.
Creating an automated drop-ship program or seeking out an automated drop-ship capable vendor is like multiplying your efforts and opportunities. Few key benefits of automated drop-ship include:
However, as you may know, sometimes EDI can be delicate to handle; EDI by Design ensures complete control and visibility of fulfillment and brand-management, resulting in high levels of customer service, and on-time shipments for drop-ship by fulfilling complete cycle from PO to invoice within 24 hrs in most of the cases.
Optimize drop-ship order management and fulfillment process with the help from the experts; book your personalized demo at https://www.edibydesign.com/bookademo