All About Drop Shipments

#shipments

Dynamics 365 Business Central

Drop shipments are movements of goods from a supplier to a customer that don't transit through a company's warehouse.
Drop shipments are used by companies to reduce inventory and storage costs.
Drop shipments differ from direct delivery, as goods are shipped from a vendor site and received by a customer in the same transaction.
Drop shipments do not account for goods in transit after the vendor shipment but before the customer receives the goods.
Drop shipments are used to fulfill urgent customer orders when items are unavailable and for expensive or bespoke items for which holding stock is inconvenient.
The first step in the drop shipment process is creating the sales order, with the option to set up specific order lines as drop shipments.
The next step is to create the related purchase order, either manually or using the requisition worksheet.
Drop shipments can be shipped and received, with the sales shipment or purchase receipt automatically updating the corresponding document lines.

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#shipments