Drop Shipment
HI ,
Drop Shipment means when ever the supplier does not enough stock,dont maintain stock just he will receives the sales orders from customers and again the supplier raises the sales order to another supplier and the third supplier shifts the goods to the orginal customer. this the DROP SHIPMENT PROCESS but i have a little confusion and i need some explanation on this
SUPPLIER A,SUPPLIER B,CUSTOMER C
step1: CUSTOMER C raises a SO to SUPPLIER A
step2:SUPPLIER A raises PO (using auto create)to SUPPLIER B
STEP3: SUPPLIER C RECEIVES PO FROM SUPPLIER A with SHIPPING ADDRESS OF CUSTOMER A
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