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Drop shipments require maximum insight in order and delivery processes

Last week, I visited a reseller who had gotten into a serious discussion with a supplier about a drop shipment delivery. The delivery hadn’t arrived and the two parties were arguing about who would pay for the replacement costs. “Sorry, reseller you have five days to report a problem with a delivery from the moment we start the delivery process,” the supplier said. “Now we’re unable to submit a claim to the carrier!” But how could the reseller have known that there was an issue? The ordered product was out of stock and was expected to be back in stock somewhere between the order moment and fourteen days later. It is impossible for a reseller to call his suppliers every day to make sure there aren’t any problems he has to take into account. So what now? How can we prevent issues like these?

Drop shipments have many advantages. One of those is that a reseller can store less stock, or even no stock of his own at all. The order is delivered directly to the end user, which saves transportation costs and makes sure the product makes it to the end user a lot faster. With this drop shipment method, the reseller significantly improves his sales opportunities.

“A serious discussion about a drop shipment delivery explains the need for control of the order and delivery process.”


This method, however, also has its downsides, because the reseller loses part of his control of the delivery process. When is the supplier going to extradite and when can the end user expect the shipment? Which carrier is used and can the end user trace the delivery? This information is essential for the reseller’s internal organisation, since it is information he most likely wishes to share with the end user.

To make this possible, the reseller needs to have complete insight in and control of the order and delivery process of his suppliers. From sending electronic orders to receiving order confirmations, delivery notes and invoices. All via his own system; one system that provides insight in all activities that suppliers carry out on behalf of the reseller. This way, the reseller is back in control and, based on the available information, he is able to inform his customers in advance that a delivery is on the way or that, for example, the shipment will be delivered three days later. With decent insight and control, you can prevent a lot of problems and discussions with the suppliers and, more importantly, the end user. Because trust me, you will hear from the end user if his delivery does not arrive – and within the claim period as well!

Richard Vriezekolk
Sales & Account Manager New Business

Richard Vriezekolk
Sales & Account Manager International Benelux
+31 6 43 04 95 43